ADVERTISING ON SOCIAL NETWORKS By John Kwag

GLA 612 Research and Writing for Masters Thesis Alexandra Rollo December 9, 2013

Autobiography My life is one which has been about crossing borders from the beginning. I was born in Korea in 1977 and moved to the United States at the tender age of one. This ping pong journey between Korea and the US continued with elementary school in California and Massachusetts and high school at Seoul International School in Korea. Even my higher education was not exempt from a trip across the oceans. I started my undergraduate studies at Bates College in Maine and finished by graduating with a BA in English Literature from Sogang University in Korea after a stint in the Korean military. My life is also one that has always been surrounded by the IT industry. My father was a VAX mainframe engineer with Digital Equipment Corporation and later Director of R&D at Samsung Electronics. Through him, I had my first exposure to Infocom text adventure games and online MUDs (early text-only virtual communities) on ARPANET, the earliest incarnation of the Internet. Through the years as I went back and forth across the planet, games and online community were my two strongest constants. My love for games and understanding of the logic and frameworks that underlie them led to a career in the games industry. In 2005, I started as a Game Manager on the game Silkroad Online at Joymax. From 2007 to 2009, I worked as a Publishing Producer on the games, APB and Firefall, at Webzen. I became Project/Sourcing Lead at OGPlanet in 2009 and finally cofounded a social games startup Second Wave Games in 2010 as project manager on the game, Princess Academy. Throughout this time, I learned how games worked as a business and how game businesses worked with each other. In between these game positions, I followed my passion for online communities with a Global Team Lead position at Freechal ( a Korean social network) in 2007 and Touchring (a

social Skype-like service) from 2010 to 2011. I was, from 2012 to 2013, a founding team member at a Silicon Valley startup: KarFarm (LendingTree for cars), and have been a Business Development and Growth consultant since 2011 at a Korean startup: ChannelBreeze (they provide the service, Jikbang, a Korean online rental apartment marketplace). In this part of my career, I gained a perspective of how social communities work online and how businesses arise from them. My life and career has been about bridging gaps; whether they are geographical, cultural, technological, or industry-based. After having only been on the business and production side of the tech and games industry, I am working on a Game Design MFA at Academy of Art University in order to bridge the gap that I found in myself between the technical and the creative. I am now spurred on by the need to understand how to be creative and to actually make, design and imagine games and online communities instead of simply oversee the production and the business of them. In the same ways that my life has been an exercise in the closing of the gaps in culture, business and technology; I hope to learn the skills to converge all my passions and experience in games, e-commerce and social networks into cohesive works that function with the best elements of each industry.

Abstract This purpose of this paper was to evaluate both the perception of social advertising in relation to privacy concerns and its effectiveness in engaging social network users in terms of raising brand or product awareness and its ability to convert these users to consumers. Is social advertising too invasive and passive in its current state? In order to establish a baseline for the primary research needed for this project, research data regarding social network-related demographics, common usage behavior, and attitudes was utilized. An interview with an expert, a Facebook executive, and a survey of 30 random individuals from both online and offline sources in San Francisco was then implemented to explore the potential perception of invasiveness and measure the margin of activity that social advertising invokes.

Table of Contents Autobiography ................................................................................................................................ 2 Abstract ........................................................................................................................................... 4 Table of Contents ............................................................................................................................ 5 Table of Figures .............................................................................................................................. 8 Introduction ..................................................................................................................................... 9 Background ................................................................................................................................. 9 Statement of the Problem .......................................................................................................... 10 Purpose of the Project ............................................................................................................... 11 Hypotheses............................................................................................................................. 11 Specific Outcomes ................................................................................................................. 12 Audience ................................................................................................................................ 12 Assumptions............................................................................................................................... 13 Limitations................................................................................................................................. 14 Operational Definitions of Terms ............................................................................................. 15 Methodology Overview ............................................................................................................. 15 Literature Review.......................................................................................................................... 17 Article One: Classifying and Profiling Social Networking Site Users: A Latent Segmentation Approach. ................................................................................................................................ 18 Purpose and Methodology ..................................................................................................... 18 Results ................................................................................................................................... 18 Article Two: Sustainable Marketing and Social Media. ....................................................... 18 Purpose and Methodology ..................................................................................................... 18

Results ................................................................................................................................... 19 Article Three: Like It or Not: issue of Credibility in Facebook Advertising ......................... 19 Purpose and Methodology ..................................................................................................... 19 Results ................................................................................................................................... 19 Article Four: User Experience in Social Commerce: In Friends We Trust. ........................ 20 Purpose and Methodology ..................................................................................................... 20 Results ................................................................................................................................... 20 Interview ....................................................................................................................................... 21 Purpose...................................................................................................................................... 21 Methodology .............................................................................................................................. 21 Results ....................................................................................................................................... 21 Survey ........................................................................................................................................... 23 Survey Purpose .......................................................................................................................... 23 Survey Methodology .................................................................................................................. 23 Survey Results ........................................................................................................................... 24 Analysis of Findings ..................................................................................................................... 33 Conclusion .................................................................................................................................... 36 Works Cited .................................................................................................................................. 39 Appendices .................................................................................................................................... 41 Appendix A - Interview.................................................................................................................. 42 Appendix B Pilot Survey ............................................................................................................ 47 Appendix C - Survey...................................................................................................................... 49 Appendix D Research Topic Proposals ..................................................................................... 52

Appendix E Research Source Summaries .................................................................................. 55

Table of Figures Figure 1: Demographics 1 ............................................................................................................. 24 Figure 2: Demographics 2 ............................................................................................................. 25 Figure 3: Demographics 3 ............................................................................................................. 25 Figure 4: General Social Network Usage ..................................................................................... 26 Figure 5: General Social Network Usage 2 .................................................................................. 26 Figure 6: Social Network Activity 1 ............................................................................................. 27 Figure 7: Social Network Activity 2 ............................................................................................. 27 Figure 8: Social Commercial Activity 1 ....................................................................................... 28 Figure 9: Social Advertising 1 ...................................................................................................... 29 Figure 10: Social Advertising 2 .................................................................................................... 29 Figure 11: Social Advertising 3 .................................................................................................... 30 Figure 12: Social Commerce ........................................................................................................ 30 Figure 13: Social Network Priorities ............................................................................................ 31 Figure 14: Social Network Priorities 2 ......................................................................................... 32

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Introduction Background Around the world, one in four people use social networks in 2013 (Elkin, 2013). A population of 1.73 billion (Elkin, 2013) is using social networks to communicate, share stories, advance their career, and other social activities that were once fixed solidly in the offline world. Services like Facebook, Twitter, LinkedIn, and Google+, have seamlessly become the focal points of the social lives of most of the population in the United States. Social networks are the new channel of attention supplanting print, TV, older web media like blogs, and even online search. Its no longer about which search term gets the most hits but what get the most recommendations, Shares, Likes or Follows. It would then be an easy decision for many advertisers to follow the center of attention and shift their campaigns and funds towards engaging the people where they were paying the most attention: on social networks. Advertisers have spent $2.2 billion on Facebook advertising alone in 2013 (Sasseen, 2013). Advertisers have spent this money on social network advertising not only because of the population numbers but because of the promise of having advertisements that are more relevant and engaging to each particular person because lives and activities are being captured and categorized as they happen in these services (Yaakop, 2013). If an individual was having a baby and it was announced on Facebook or Twitter; the advertisements would reflect this life change with discounts for diapers and strollers. The promise of advertising on social networks was these new opportunities for advertisers to connect with consumers. The current reality is, however, that advertisers have simply brought an old model of advertising to this new channel of attention. Display advertising or ads with text, images, and logos that you simply view; is still the primary mode of advertisement on social networks

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(Carolyn, 2011). These display ads rely on a user to first notice the advertisement and then make the conscious decision to click on the advertisement or to simply remember it. In contrast with services that have introduced new ways of interaction between people, similar shifts in interaction with advertising on social networks have not followed pace. The content of the advertising may reflect the dynamic nature of the lives of social network users but the relationship of the interaction remains solidly in the broadcast nature of past media like TV, print, and radio. Statement of the Problem It can be argued then that advertising on social networks like Facebook are passive in the interaction but also invasive in their content. The passivity of the interaction may affect the ability of the advertisement to engage with social network users when their interactions everywhere else in social networks are more active (Terlutter, 2013). On TV it is harder to ignore advertisements because both the main content and advertisements share the same passive viewing process. On social networks, parts of the main mode of interaction are requiring more active interaction than simple viewing. Users actively interact with the content by sharing, liking, categorizing, commenting, and sometimes playing with it. Advertisers are paying money for increased attention but may be receiving less direct return on their investment because the user may be less likely to be converted into a potential consumer due to this interactivity gap. Social advertisements attempts at displaying relevant content may, when noticed by the user, inspire the idea that a third party has access to personal details of ones life. This could prove to be a problem for brands and companies especially in the heightened climate of concern in regards to privacy prevalent today. When users share with other individuals in a social network, it is assumed that there is an existent personal relationship with these connections

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especially when they have been chosen by the users (Alarcn-del-Amo, 2011). There is an implied understanding and often explicit agreement, covered by legal disclosure forms that accompany these services, that these other people can be privy to the details of the users life (Andresen, 2011). This agreement does not extend however to third parties who have commercial interests whose access is not controlled by the users. The lack of control and the implicit commercial nature of advertisements may lead users to feel a violation of their privacy for someone elses gain. Purpose of the Project The project approached the issue of social advertisements being passive but also invasive by gathering data from users to see if this was actually a reality. The project also explored if this passivity and invasiveness had any effect on the effectiveness of advertising in regards to user response and perception to not only the advertisement but to the brand and product itself. More importantly, research was done to see if the advertisements had an actual influence on purchases. Extrapolated from the data and the conclusions reached, a series of criteria was formulated that any new form of advertising on social networks should satisfy in order to avoid being passive and invasive. These criteria were used in proposing and evaluating a new social advertising product. The proposal for this product focused on the mode and frequency of interaction as well as the nature of the source and target of its content. Hypotheses This project tested the argument that current social advertising is too invasive and too passive. The project proposed that users felt that their privacy was being violated by advertisements that in some way relate to content that they have posted in a space that they consider to be under their control. At best, these advertisements did not prompt or incite any

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other action from the user except observation. In many cases, the passive nature of the advertisements allowed users to easily ignore these social advertisements Specific Outcomes This project explored the thesis that current social advertising is too invasive and passive. The outcomes that could arise from the research that tested this hypothesis were mostly dependent on how users perceive advertising on social networks and the actual influence these advertisements have on users in regards to their purchasing decisions. The first potential outcome mirrored the hypotheses that was presented above in that users did find social advertising invasive to their perception of their privacy and that the advertising fails to convince the user to participate in the intended commercial activity like purchasing a product or utilizing a service. The second potential outcome was similar to the first in that users did find advertisements invasive but resulted instead in successfully influencing the user to participate in the intended commercial activity. The third potential outcome was that the user did not feel that the social advertisements were invasive and the advertisements were successful in converting users into consumers, participants in the commercial activity. The fourth potential outcome was that the users did not feel that the social advertisements were invasive but that, unlike the third potential outcome, the advertising failed at converting the users into consumers. Audience Despite the variance of potential outcomes, the data and report that resulted from this research was aimed at entrepreneurs, advertisers, social network companies, and academics involved with the intersection of technology, advertising, and social.

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Most of the potential outcomes outlined previously in this paper would provide opportunities for startups to exploit what is not working as intended by introducing new methods and technologies. Advertisers would be given more comprehensive feedback in regards to their social advertising that is more nuanced than pure metric data that only counts numbers and not perceptions. Social network companies could use this data to not only get a sense of how their frameworks, key technologies, and methods are perceived but also if they are effective in what they are promising to their partner companies and advertisers. Finally, the projects data on privacy issues, the differences in attention and perception of social advertising, and finally the interplay between the private experience and the public commercial experience would provide additional insights for academic researchers involved with media, privacy, and technologys impact on society. Assumptions Several assumptions were made by the researcher prior to work on this project. These assumptions underpinned both the thesis, actual research, and conclusions of this project The first assumption was that the social networks utilized by participants in the research were those of a technological nature and were services that resided on the internet. It was assumed that those who used these social networks had access to internet services and understood how to utilize these services. The second assumption was that the social advertisements that were the target of this study were those of the display variety and clearly delineated as advertisements and not promoted content that appears as part of most social networks main content. This was done as promoted content is still a nascent marketing model and not available on all platforms and services.

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The third assumption was that the aim of these social advertisements were those of a commercial or transactional variety. These would include advertisements that promoted brand awareness without explicit mention of a product or service because the final aim would still be one of trying to convert the user to pay or use a product or service. Limitations During the duration of the project to see if social advertisements were invasive and passive, there were several limitations on this project that were encountered during the course of the research. As discussed before in the section covering assumptions, the research was only focused on social advertising that was of the display variety and clearly delineated as such. Display advertising is still the most prevalent mode of advertising on most social networks and it was believed that participants in the study would be the most experienced with this kind of advertising. The pool of survey participants and the time available for these participants to take the survey was limited. A larger pool and longer timeframe may have led to variant data but it is believed that the trends and perspectives uncovered by the existent data would have remained evident. Some elements of demographic data were also excluded especially in regards to socioeconomic factors. The researcher was also limited in his ability to quantify the relative values of certain questions and results from the survey. The conclusions reached from the data involved may have been different if certain data derived from the survey was given more weight in the results. The final limitation was encountered in the interview section of the project. Both interview subjects and questions with Paul Jeffries and another individual, who was ultimately

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not interviewed, were limited by legal and corporate concerns over disclosure. Questions had to be submitted to the companies they worked for prior to the interview and the final transcript had to be edited and cleared after the interview as well. Operational Definitions of Terms Content. Any media based expression that is communicated through a platform. This media may include text, images, video, and games. Display Advertising. This was advertising that contains text or images and was primary experienced by viewing the advertisement. Metric Data. Measurement of a quantifiable component of perfomance. Promoted Content. Advertising that provides content in the context of the surrounding experience. Social Advertising. This was advertising on social networks and clearly delineated as such. The content and types of advertising would be customized to fit the content being shown to the individual user of the social network. Social Graph. The mapping of individuals and how they are related to each other. Social Networks. A internet based platform through which users can share content, build relationships or participate in activities with other people. User. An individual who is a member of or utilizes a social network Userbase. The collective group and number of people who use a particular product or service, especially one situated on the internet. Methodology Overview The project accomplished its research in three primary ways. The first approach was to gather background information through previously published research and articles. This led

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to the thesis argument upon which the paper was based. The second approach was to interview an expert and experienced executive of a social network. Finally, a survey of social network users was done in both online and offline channels.

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Literature Review This project evaluated whether social advertising was invasive in nature and passive in function to users of social networks. The project required a survey of 30 random offline and online social network users to answer questions regarding their demographic identity, social network usage, and their attitudes towards social networks and social advertising. There has been a great amount of research done in regards to demographic data, usage factors and attitudes towards social networks and to a smaller extent, social advertising. However, this research has usually focused on only singular parts of the users experience. The research would focus only on the factors behind certain types of usage of social networks or the factors behind certain perceptions held by users in regards to social advertising. This project attempted to gather data that encompassed the motivational part of the social advertising experience and the functional part of the social advertising experience. In order to proceed with this project, baseline categories of data and the data itself had to be formulated ahead of time. In addition to researching general demographic social network data, research was also consulted in how to classify this demographic data in a way that was useful in categorizing the userbase of social network. Activities by this userbase were also researched in order to establish what the most relevant activities were in regards to social networks. Research into functional motives of users in regards to social advertising was also consulted to better craft questions in the survey that prompted reactions one way or another. The primary issue of trust or credibility between the user and the social advertising was also examined in research that was consulted by this project. Research involving successful economic transactions and commercial relationships online in social networks was utilized to set a standard of what was

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required to be successful in first engaging the user through the content provided and then converting them in to consumers. Article One: Classifying and Profiling Social Networking Site Users: A Latent Segmentation Approach. Purpose and Methodology This study had basic demographic data as well as segmented usage data of social networks. There was a focus on marketing oriented data in this study. Through the data gathered through surveys and interviews, the study segments the userbase into multiple classes. The usage data was focused on marketing related activities such as commenting on ads or gathering information about products and brands. The article was found through the online database, Academic Search Premier, provided by the Academy of Art University library using the keywords: social networking and users. Results This study was required for this project for the baseline demographic data it had as well as usage data that was oriented towards the part of social network activity that was focused on: social advertising. The classification structure that was generated from this research also made any further discussion easier in regards to the principles of classification of users and their activities. Article Two: Sustainable Marketing and Social Media. Purpose and Methodology This study was based on a survey of 1,018 people from the US, Germany , and Korea in regards to their usage of Facebook and Twitter, The study was structured to explore functional motives for sustainable marketing behaviors. It is a psychological research into the mechanics of

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social marketing involvement. The article was found through the online database, OmniFile Full Text Select (H.W.Wilson), provided by the Academy of Art University library using the keywords: social media, marketing, and Facebook. Results The data in this study was used to explore what made social advertising, even in its current state, appealing to businesses in regards to how it affects consumers. Although the thesis of this project is critical of the current state of social marketing; there must be some data given to why it is still better than other more traditional forms of marketing. Article Three: Like It or Not: issue of Credibility in Facebook Advertising Purpose and Methodology This study explored the issues of credibility and privacy trust in advertising on social networks. A total of 350 respondents participated in the study of attitudes towards advertising on social networks. The data was used to assess the most important factors that contribute to the attitude of most users to advertising on Facebook. The article was found through the online database, Academic Search Premier, provided by the Academy of Art University library using the keywords: Facebook, advertising and like. Results The data in this study was utilized to explore whether the projects central argument holds in regards to user reaction to social advertising. Because the study was very focused on attitudes; inferential conclusions were drawn from the data in regards to the effectiveness of these particular models of advertising. The data also provided some insight into what is effective in the current model and this can be compared and contrasted with a proposed solution.

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Article Four: User Experience in Social Commerce: In Friends We Trust. Purpose and Methodology This study examined consumer behaviors in social commerce. Utilizing survey and interview research methods to examine trust and other factors that influence attitudes towards social commerce, the study then applied scale and factor analysis and probability theory to examine the results. The article was found through the online database, Academic Search Premier, provided by the Academy of Art University library using the keywords: social, commerce, and user. Results The data involved in this study was directed at the transactional part of social commerce and the analysis that it offered assisted in giving some support to the solution that will be proposed in a later section in regards to social advertising. The solution involves an element of transactional functions. The study of the behavior involved in the transactional part of social commerce was also useful in contrasting the behavior that is generated by more display oriented methods of social advertising with actual business results.

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Interview The project required an interview in order to gain an in-depth exploration of social advertising and the perception of its invasiveness and passivity. The interview would provide a perspective from the company that was behind the social network and its advertising services. The interview also provided information from which the later survey could base its focuses for the types of questions that were needed. Purpose Paul Jeffries was needed for this interview to contribute an expert viewpoint on the concepts behind what social networking based marketing is. The interview was also a way to see if the concern regarding the invasiveness and passivity of social advertising which was central to the project thesis was really relevant. An overview was also needed to address how Facebook wanted to differentiate their marketing tools and experience from other big destinations on the web. Methodology The researcher, while consulting with a company from 2012 to 2013, has worked with Paul Jeffries in his capacity as an executive at Facebook. The interview questions were peer reviewed by the researchers colleagues at Academy of Art University prior to submission to the interview subject and his company, Facebook. Paul Jeffries was interviewed on the premises of Facebook in Palo Alto, CA. Results In the interview there was a focus on the relevancy of the advertising and the unique and effective targeting that the social graph affords advertisers on Facebook. However, the method of presentation, display ads was essentially the same. The consensus seems to be that there are

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not too many other advertising methods being attempted on social networks at the moment. Paul seemed to be implying that the technology and infrastructure exists for something that is more interactive but that the advertisers have not yet been utilizing the social properties of the technology for anything but targeting of relevant consumers

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Survey The survey was formulated to provide data that would support or counter the thesis that social advertising was invasive and passive. The survey was an essential tool to collect data regarding the perception of not only social advertising but to also get a profile of the users who be experiencing the advertising. Survey Purpose This survey was conducted in order to gather data that would support or counter the thesis argument that current social advertising is passive and invasive. This was done by gathering general data in regards to how most people used social networks and specifically how they react to or if they participate in commercial or commerce-related activities on these social networks. This data would generate a baseline standard for how active or passive most people are on social networks and thus what would constitute active or passive social network activity. Social advertising was also contrasted with another form of marketing activity, the social recommendation. Finally, this survey explored the relevancy of, actual participation in, and concerns that the respondents had in regards to advertisements on social networks. Survey Methodology This survey was conducted both offline and online. Both the online and offline surveys had identical questions and answers. The offline respondents were selected randomly and surveyed by the researcher in Union Square, Yerba Buena Gardens, and on New Montgomery Street in San Francisco, California from Saturday, November 16, 2013 to Sunday, November 17, 2013. The online respondents were invited to participate by posts on various online game, car, and basketball enthusiast forums and through Facebook, LinkedIn, Google + and Twitter.

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Neither location based or cultural demographic data is available for the online survey participants. Surveymonkey (http://www.surveymonkey.com) was utilized to both present the survey and collect data online. The online participants were surveyed from Thursday, November 14, 2013 to Tuesday, November 19, 2013. Survey Results The results from the survey begin with an overall demographic breakdown of the respondents so the parameters of the sample population surveyed can be seen.

Gender and Age Breakdown

18

16

14

12 45-54 yrs 10 35-44 yrs 25-34 yrs 8 18-24 yrs 11 and under 6

0 Male Female

Figure 1: Demographics 1

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From a total of 31 respondents (15 offline, 16 online); approximately 55% were female and 45% were male (see figure 1). The largest age group across both genders was in the 25 to 34 age group at 41% of the total and second was the 35 to 44 age group at 35% (see figure 1).

Education

11 2 9

Elementary High School College Graduate 18 Post Graduate

Figure 2: Demographics 2 The respondents were mostly college graduates at 58% of the total with some having achieved a graduate degree (like a Masters degree) at 29% (see Figure 2).

Employment
5 3 22 1 Employed Self-Employed Student Homemaker

Figure 3: Demographics 3

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Finally, most of the participants or 71% in this study were employed with students being the next biggest group at 16% (see figure 3).

Which social network have you used in the past three years?
None Foursquare Yelp Pinterest Google+ LinkedIn Facebook 0 5 10 15 20 25 30

Figure 4: General Social Network Usage The most widely used social network was Facebook with about 87% of the respondents having used it. No one was not on a social network. Everyone who was surveyed utilized at least one social network in the last three years. (see figure 4).

How often do you use a social network?

Never Few times a year Few times a month Few times a week Few times a day 0 5 10 15 20 25

Figure 5: General Social Network Usage 2

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61% of the people surveyed use social networks very frequently or at least few times a day (see figure 5).

If you use a social network, what do you most actively do?

Don't use at all Read posts/status Share posts/status Post your own things 0 5 10 15 20 25

Figure 6: Social Network Activity 1 Most people however use social networks in a passive manner with 74% choosing to read content rather than post their own content or share content (see figure 6).

How social are you?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Comment on other's posts Post about yourself Update friends on activity Yes No I don't know

Figure 7: Social Network Activity 2

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When one drills down deeper into the activity of the respondents on the survey; a clear 70% do however comment on other peoples content and 30% update their friends on their status and location (see figure 7).

Do social recommendations influence you?

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Shared recommendation Purchase based on rec. Attended an event b/c of rec. Yes No I don't know

Figure 8: Social Commercial Activity 1 Recommendations on social networks seem to have varying degrees of influence on our commercial activities. The percentage of people actually submitting recommendations for products or services is about 48% of the survey population and it is an equal percentage who have made purchases based on recommendations. Recommendations were a stronger influence on decisions to attend an event with 61% being influenced to attend events by recommendations on social networks (see figure 8).

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Advertising on Social Networks

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Pay attention to ads Clicked an ad Is the ad relevant? Frequently Sometimes Almost never Never

Figure 9: Social Advertising 1 Advertising on social network seems to not be effective at gaining attention or clicks with the majority of respondents (see figure 9). It is however slightly better at being relevant to the user but that does not seem to translate into more engagement with the user.

How do social ads make you feel about the product or brand?
Very Unfavorable Unfavorable Neutral Favorable Very Favorable 0 5 10 15 20 25

Figure 10: Social Advertising 2

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The social ads do not seem to arouse any negative feeling for 68% of the people but the remaining people are more likely to have negative impressions of the product or the brand than positive ones (see figure 10).

I have made a purchase or used a service that was advertised on a social network.
Yes

No

I don't know 0 5 10 15 20 25

Figure 11: Social Advertising 3 It is surprising however, that despite the negative impression that ads may incur, 19% (see figure 11) do purchase a product or service that has been advertised on a social network.

On social networks, what has more influence on your purchase?

Recommendation

Advertisement

Neither 0 5 10 15 20 25

Figure 12: Social Commerce

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Finally, over 67% of the respondents believe that recommendations have more influence in their purchasing decision and 25% feel that neither has any influence (see figure 12).

What is the most important function that a social network needs to fulfill?
Communication

Fun

Relationships

Career

Services

Shopping

10

12

14

16

Figure 13: Social Network Priorities Approximately 48% of the respondents believe that social networks should focus on communication as their primary function (see figure 13). The next two priorities, fun and relationships, all tie into that function and are the next important to people at 19% each.

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What concerns you the most about social networks?

Privacy

Bullying

Career impact

Relationship issues

Time use

Social isolation

10

12

14

16

18

20

Figure 14: Social Network Priorities 2 Finally, the most overwhelming concern, at 58% of all the six concerns, that the respondents had about social networks was regarding privacy (see figure 14).

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Analysis of Findings During this project to explore whether social advertising was too invasive and passive, the data that has been gathered from the interview and surveys has been surprising in some ways and in line with the hypotheses generated before this project began. The initial research into advertising on social networks uncovered the need to first explore the nature of the activities of users of the social networks (Alarcn-del-Amo, 2011). The survey data shows that in 2013 social networks are used by a majority of people (see figure 4) and on a frequent basis (see figure 5). However, a majority of these users do not create original content but rather consume it or share their viewpoints on it (see figure 6 and 7). One can thus surmise that the majority of users are passive users in types of activity but heavy users in regards to frequency of usage. The interview with Paul Jeffries, Vice President at Facebook, revealed that Facebook had an evolving ability to go beyond traditional advertising but that there had not be any motivation or momentum to implement these innovations during the current time frame (Appendix A). This would seem to support the notion that the current system of display advertising on social networks work satisfactorily enough that both Facebook and its partners do not feel pressure to utilize a new system. According to the survey data however, users are not as satisfied. Most users do seem to perceive social advertisements as passive and ineffective (see figure 11, figure 12). It is surprising that people however do not find social advertising invasive or even negative (see figure 10) even if their top concern is their privacy (see figure 14). This may simply be that the relevance of many of the advertisements was nowhere near the threshold of being too invasive for most people (see figure 9). The data provided here supports the functional part of the thesis

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argument but not the part concerned with perception. Though there is a general concern with privacy (see figure 14) it is not localized to advertising as of yet. In order for the users to feel as if their privacy was being invaded there has to be a degree of accuracy in subject and topic matching between the social content that these users experience and the commercial advertising content. This is not to say that the majority was not receiving relevant advertising but that for a large portion of people involved, the accuracy of the advertisements in anticipating or matching their current topics of interest just did not exist (see figure 9). There is no perceived privacy risk due to the greater prevalence of inaccuracy of the advertisements and thus no concern for the invasiveness (Seounmi, 2009). The purported advantage of targeting that exists for social advertising does not seem to exist yet or is too subtle to be noticed by consumers. The situation becomes worse for social advertising when placed in the context of their ability to spur revenue generation by converting users into consumers. There is indifference when it comes to the impact of social advertisements on peoples purchases (see figure 11). The data seems to be implying that most social advertising is ignored because it is usually easily situated or categorized as such. In fact, people are so indifferent to social advertisements that it has neither a positive or negative effect on perception of the brand or product (see figure 10). The data also shows that the potential solution to the problem that the thesis argument had posed, recommendations, may need to go through some revisions in the root conception of its purpose. Recommendations on social networks have shown some positive influence in converting users into consumers (see figure 8 and 12). The problem with recommendations lies in the lack of overall numbers of people willing to engage in any commercial activity based on any content on social networks (see figure 11). Though the data within the subset that do buy

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based on social content is overwhelmingly influenced by recommendations, this weakness of support overall for purchases being influence by any social content may necessitate a different set of implications than originally considered.

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Conclusion The central thesis argument that social advertising was both invasive and passive turned out to not be entirely correct according to analysis of the data. The interview with Paul Jeffries (appendix A) implied that there was satisfaction with the current system and seemingly contradicted one of the central notions of this project that social advertising was not working at all to both be a positive ambassador and facilitator to consumers. On the other hand, the conclusions that one can derive from the data that this survey has generated do seem to support the thesis argument that current social advertising is not satisfactorily perceived by the users of social networks. The result of the data from the project however were not perceptions of invasive and passive social advertisements but rather the view that social advertisements that were passive and caused indifference. What is being shown here is that the researcher overestimated the technology of subject and topic relevance that many of these social networks purport to have. The ability of social advertising to be perceived as invasive simply is not supported by the ability of many advertisements to be relevant. A solution to this issue of indifference and passivity to social advertising then requires an active engagement with the user that also enhances its relevance. The accuracy of this relevance however must be one that is predicated on the user being in control of the advertising experience so that users do not feel that their privacy is being exploited. This control needs to exist without endangering the ability for this advertisement to be distributed and in fact this control should enhance the distribution of the advertising. Future social advertising then needs to satisfy several conditions. It needs to be native to the context in which it is situated. It needs to be relevant to the users needs without the

Kwag 37

perception of their privacy being violated by a unconnected third party. It must be active in converting users to consumers. It has to have active engagement which the user can control. Finally, distribution of the advertisement needs to be enhanced. As the survey data has shown, many users have not spent money as a result of social network content (see figure 11). However, overall social network data from 2013 (Hulkower, 2013) shows a part of the social network ecology where money has been spent and less resistance is available: in social games. Social games are considered native experiences in the context of many social networks as they have been recognized by both users and the social network companies as being integral to the social network experience. The companies behind social games have also mastered the ability to utilize viral strategies to enhance their distribution among the social network userbase. Games, in general, are very good at giving users a perception of control and freedom within a system of rules. Games also have mechanics that encourage continued participation over longer periods of time than most other media content. Another feature that has shown to be positively perceived by social network users are recommendations. Recommendations do not feel invasive because the content is coming from either social connections that are trusted by the user or from sources that are perceived as being non-commercial. If recommendations, as part of a social advertising product, are generated and utilized at the right time based on data derived from the social graph, the accuracy and relevancy issues that plague current social advertising will be solved. The future of social advertising then lies in advertisements which are social games with recommendation features that are integral to the experience. This strategy would lead to social advertising products which would immerse and enhance the social network experience of users

Kwag 38

instead of being disruptive or ignored. If media has changed to center around the user, it is time for advertising to do the same.

Kwag 39

Works Cited Alarcn-del-Amo, Mara-del-Carmen, Carlota Lorenzo-Romero, and Miguel-ngel GmezBorja. "Classifying and Profiling Social Networking Site Users: A Latent Segmentation Approach." Cyberpsychology, Behavior & Social Networking (2011): 547-543. Web. 16 October 2013. Andresen, Katheryn A. "Marketing Through Social Networks: Business Considerations - From Brand to Privacy." William Mitchell Law Review 38.1 (2011): 290-327. Web. 16 October 2013. Brajnik, Giogio and Silvia Gabrielli. "A Review of Online Advertising Effects on the User Experience." International Journal of Human-Computer Interaction (2010): 971-997. Web. 23 October 2013. Carolyn, Heller Baird and Parasnis Gautam. "From Social Media to Social Customer Relationship Management." Strategy & Leadership 39.5 (2011): 30-37. Web. 23 October 2013. Elkin, Noah. "Social Networking Reaches Nearly One in Four Around the World." 18 June 2013. eMarketer. eMarketer Inc. Web. 22 November 2013. Gansky, Lisa. The Mesh: Why the Future of Business Is Sharing. New York: Portfolio, 2010. Print. Hulkower, Billy. "Social Networking - US- Jun 2013." June 2013. Mintel. Web. 15 October 2013. McGonigal, Jane. Reality Is Broken: Why Games Make Us Better and How They Can Change the World. New York: Penguin Group, 2011. Print. Minton, Elizabeth 1,2, et al. "Sustainable Marketing and Social Media." Journal of Advertising 41.4 (2012): 69-84. Web. 16 October 2013.

Kwag 40

O'Donnell, Fiona. "Living Online - US - July 2012." July 2012. Mintel. Web. 15 October 2013. Sasseen, Jane, Kenny Olmstead and Amy Mitchell. "Digital: By The Numbers." 18 March 2013. The State of the News Media 2013. The Pew Research Center's Project for Excellence in Journalism. Web. 22 November 2013. Seounmi, Youn. "Determinants of Online Privacy Concern and Its Influence on Privacy Protection Behaviours among Young Adolescents." Journal of Consumer Affairs (2009): 389-418. Web. 23 October 2013. Shin, Dong-Hee. "User Experince in Social Commerce: In Friends We Trust." Behavious & Information Technology (2013): 52-67. Web. 16 October 2013. Terlutter, Ralf and Michael L. Capella. "The Gamification of Advertising: Analysis and Research Directions of In-Game Advertising, Advergames, and Advertising in Social Network Games." Journal of Advertising 42.2.3 (2013): 95-112. Web. 27 October 2013. Yaakop, Azizul. "Like It or Not: Issue of Credibility in Facebook Advertising." Asian Social Science (2013): 154-163. Web. 16 October 2013.

Appendices

Appendix A - Interview Paul C. Jeffries, Head of Legal Operations, Policy Strategy, Facebook: Interviewed by John Kwag on 11.05.13 John Paul John Hi Paul. Thank you. Its been awhile since we met because of KarFarm. I really enjoyed working with you all then Like I told you before; this interview is going to not only help me with preparing my thesis but also is being used for a Writing and Research for Masters class as well. Thank you for helping me out. Paul No problem. I took a look at the questions that you sent in advance and its all ok.

[Facebook had to approve the questions before the interview could proceed] John Paul Im glad there wasnt any big issues with the questions. Noand the questions have made me very curious to what will result from not just the paper you are writing but your thesis project itself. I assume its the crowdfund game youve talked about before? John Yes. But I have to get this research done so I can dot all the Is and cross the Ts. I am planning to do an actual academic paper to go along with the product prototype. Paul I would love to check in with you as you work on both.

John Thank you. SoYou joined Facebook in 2007? Paul Yeah. I had been dabbling as a VC and with some startups before then.

John Paul

From 2007 until now, how has advertising and marketing on Facebook changed? Well when it (Facebook) started, a lot of the advertising was event oriented. This was before I was here, but it was a lot like party or club ads that you would see posted around campuses. There was one set price which later changed to a range based on how specific they wanted to get. The more specific an audience, the more expensive it got.

John Paul

So the format was essentially the same though? Display advertising? Yes. But it was how they were being targeted which was different. First it was the display ads, then we had brand groups. These were companies who would have a special branded group on Facebook. This was actually more popular with marketers and the users. We also made more money of it.

John Paul

Any other big changes? Well the way we sell the marketing products changes from a sales model to a marketplace model. But to the consumer how close we are getting with the tools gets better.

John

You mention better; what was the standard for progress with social marketing on Facebook?

Paul

That not only would we be able to be able to give the user something that mattered to them but also to where they were. Local in every sense and something that you would want in the moment.

John

In the moment?

Paul

Thats what the Like is. Its a way to get at what is it that you are wanting or feeling in something close to real-time. And it was simple enough that people could just do it and forget. Something you didnt have to think too hard about. That was when marketing on Facebook became not a product but an experience. And we couldnt just keep it in. It was something that was Facebook but didnt have to stay there. I think thats what we wanted. To not just be somewhere you go but something you do

John Paul

What were some of the concerns? Well we had a rough time with some of the products and tools. Some of it was from users and some of it was from advertisers. How much, often, how detailed. But nothing is exactly right when it comes out so I think we have been able to get them right.

John Paul

How? Having devs, advertisers and users all be part of the process of what makes sense for Facebook. We also made a decision though to keep the user experience as streamlined as possible while also allowing businesses to be an organic and active as possible in the use of Facebook.

John Paul

So did platform policy shape this? Its very chicken and the egg. Some of it was led by developers and we would listen very carefully as well as watch what happened and some of it we led.

John Paul

So more interaction was encouraged Yeah, from the groups to the likes at the front and the Social Graph API at the back. We encouraged a lot of back and forth between the user and our partners.

John Paul

Has that been the majority of the case with social marketing? At first no; but I think now a lot of companies have gotten the hang of it and are but theres still a lot of display advertising because its not as easy to predict what the results will be from a Page or Like count but display ads are more predictable and easier to tune for many companies. But I think we do help a lot of companies try to be proactive in the way they interact with the users.

John

So Facebook wants more companies to play with their users instead of broadcast to them?

Paul

Wellno and yes. Some things dont require a Group or a Like when just a normal ad will do but I think weve made the distribution so easy and the return easier to see that I think weve done a good job of not hurting our user experience but at the same time deliver value to our partners.

John

Forecast a decade ahead. What do you want to happen in the way that companies interact with consumers online

Paul

Well mobile and social is going to be something different than what is social on the desktop. Weve already seen the diffrerences in many things with mobile. But what do I want besides a robot? But reallyits going to be how involved will people get with their customers that it makes everything more fluid in the way we market and sell things but at the same time shareable and cozy circle of friends.

John

Quantum theory deals with phenomena at microscopic scales which have follow-on effects on macroscopic scales; what kind of scale would your theory of social marketing progress from and to?

Paul

There are usually binary stars in most galaxies; we are unusual. If you look at the user as the sun that we revolve around; we want to make sure that we reflect the light in a way that doesnt overwhelm or not shine on anything at all.

Appendix B Pilot Survey

Please circle the answer(s) that best fits you or your experience. Sex: Age: Male Under 18 Female 18-24 25-34 35-44 Over 45

Education (Highest academic degree) : No Schooling Elementary Employment: Unemployed Student Retired Homemaker Employed Self-Employed High School Bachelor Master Doctorate

1.

Which social network have you used (circle more than one if you use multiple) ? Facebook Twitter Other__________ None How often do you use a social network? Few times a year Few times a month Never

2.

Few times a week

Few times a day

3.

In a typical week, how many hours do you spend on social networks? I spend_______________ hours / minutes If you use a social network, what do you most frequently do? Game Post Read

4.

Share

5.

The type of content I normally have experience with on a social network is: Pictures or videos News Stories Messages Games I let my friends know what I am doing or where I am. Do you do this on social networks?: Yes No I dont know I have played a game, shared recommendations or attended an event based on a post from a friend on a social network Yes No I dont know

6.

7.

8.

I have spent money in a social game or made a purchase or paid to use a service based on a recommendation from a friend on a social network. Yes No I dont know Are you worried about your privacy on social networks? Yes No I dont know Why are you worried or not worried about privacy on social networks? ________________________________________________________ Do you ever pay attention to the advertisements or sponsored posts on the social network? Frequently Sometimes Almost never Never What are the reasons you have paid attention or not paid attention to the advertisements on social networks? Relevance Cost Need Brand Ad Content How do you feel about these advertisements on social networks and their relevance to you? Very Favorable Favorable Neither favorable nor unfavorable Unfavorable Very unfavorable I have clicked on an advertisement or sponsored post on a social network. Frequently Sometimes Almost never Never I have made a purchase or used a service that was advertised on a social network. Yes No I dont know Does the advertisement influence your perception of the social network positively or negatively? Positively Negatively No influence Does the advertisement influence your perception of the company or brand positively or negatively? Positively Negatively No influence

9.

10.

11.

12.

13.

14.

15.

16.

17.

Appendix C - Survey

My name is John Kwag and I am a Graduate Student at Academy of Art University. This survey is focused on online social network usage. This survey will take on average less than 3 minutes to complete. Thank you for your time and participation. Are you male or female? How old are you? Over 55 Male Female 12-17 18-24 25-34 35-44 45-54

11 and under

What is the level of school completed? No Schooling Elementary I am currently: Unemployed Student Retired Homemaker Employed Self-Employed High School College Graduate Post-Graduate

18.

Which social network have you used in the past three years? (Circle more than one if you use multiple.) Facebook Twitter Yelp Google+ Foursquare LinkedIn Pinterest Other__________ None How often do you use a social network? Few times a year Few times a month Never

19.

Few times a week

Few times a day

20.

If you use a social network, what do you most actively do? Post your own things Share posts/status Read posts/status Other______ Dont use On a social network, do you spend most of your time looking at and commenting on what others have posted? Yes No I dont know Do you spend most of your time posting things about yourself ? Yes No I dont know

21.

22.

23.

Using a social network, do you update your friends on what you are doing or where you are? Yes No I dont know I have played a game on a social network Yes No I dont know I have spent money in a game on a social network. Yes No I dont know On a social network , I have shared recommendations for products or services. Yes No I dont know On a social network, I made a purchase or paid to use a service based on a recommendation from a friend Yes No I dont know I have attended an event based on a friends post on a social network Yes No I dont know Do you ever pay attention to the advertisements or sponsored posts on social networks? Frequently Sometimes Almost never Never I have clicked through an advertisement or sponsored post on a social network. Frequently Sometimes Almost never Never How often is the advertising or sponsored posts on social networks relevant to you? Frequently Sometimes Almost never Never How do advertisements on social networks make you feel about the product or brand? Very Favorable Favorable Neutral Unfavorable Very unfavorable I have made a purchase or used a service that was advertised on a social network. Yes No I dont know On social networks, which has more influence on your purchase of a product or a service: an advertisement OR a recommendation? Advertisement Recommendation Neither

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

34.

35.

What is the most important function that a social network needs to fulfill? (Choose one.) Communication Fun Relationships Career Education Shopping Common interests Services Other___________ What concerns you the most about social networks? (Choose one.) Privacy Bullying Career impact Relationship issues Time use Social isolation False information Other_____________

36.

Appendix D Research Topic Proposals

[Topic 1:] (TOPIC & PURPOSE): Exploration of crowdfunding and gamification mechanics The purpose is to show the issues and benefits with both games and crowdfunding. Focus on the elements of participation and return on participation To set the basis for why my thesis and focus is necessary to solve a problem ro contribute something new

(FORM): Essay, White Paper (AUDIENCE): People already involved in the tech and games industry AAU assessment faculty Venture Capitalists and/or other project finance sources

(RESEARCH QUESTIONS): Does crowdfunding really need to expand to individual consumer purchases? IS there an issue with engagement in crowdfunding? Does gamification solve these issues?

(RESEARCH DESCRIPTION): More examples of crowdfunding models More examples of gamification mechanics used outside of games Metrics from both crowdfunding and gamification models o Engagement and traffic o Financial and transactional o Increase from previous models

[Topic 2:] (TOPIC & PURPOSE): Motivation behind working on something that is not just a game Exploration of what working on games meant to me Exploration of how I perceive crowdfunding Why I want to cover the thesis topic I am going to cover

(FORM): Conversational, Persuasive argument (AUDIENCE): General audience with little or no familiarity with games (RESEARCH QUESTIONS): What do games do for people? What does crowdfunding do for people? Why do I want to work on something that covers both?

(RESEARCH DESCRIPTION): Survey people and their feelings about games and crowdfunding What is my story and how does it intersect with the larger industry models I am exploring?

[Topic 3:] (TOPIC & PURPOSE): How social advertising is currently intrusive and passive Solutions to this current state of social advertising Can crowdfunding a consumer purchase be a solution to this problem?

(FORM): Opinion editorial

(AUDIENCE): General audience People with some experience with advertising on social networks

(RESEARCH QUESTIONS): What are the current content and methods used in social advertising? Do people find it intrusive and passive? Would utilizing friends and colleagues in an advertising model be less intrusive and more participatory? Would people participate?

(RESEARCH DESCRIPTION): Gather metric data on current effectiveness of social advertising Gather metric data on social shopping Survey peoples current attitudes towards ads on social networks

Survey on social shopping Survey proposed model Consult with social network and other relevant professionals and experts

Appendix E Research Source Summaries

[Primary Sources] (1) Alarcn-del-Amo, Mara-del-Carmen, Carlota Lorenzo-Romero, and Miguel-ngel Gmez-Borja. "Classifying And Profiling Social Networking Site Users: A Latent Segmentation Approach."Cyberpsychology, Behavior & Social Networking 14.9 (2011): 547-553. Academic Search Premier. Web. 16 Oct. 2013. (SUMMARY) This study has basic demographic data as well as segmented usage data of social networks. There is a focus on marketing oriented data in this study. Through the data gathered through surveys and interviews, the study segments the userbase into multiple classes. The usage data is focused on marketing related activities such as commenting on ads or gathering information about products and brands. (RELEVANCE) This study is required for my paper for the baseline demographic data it has as well as usage data that is oriented towards the part of social network activity that I will be focused on: social marketing. The classification structure that they have generated from this data will also make any further discussion easier in regards to the terminology that can be used.

(2) Minton, Elizabeth 1,2, et al.. "Sustainable Marketing And Social Media."Journal Of Advertising 41.4 (2012): 69-84. OmniFile Full Text Select (H.W. Wilson). Web. 16 Oct. 2013. (SUMMARY) This study was based on a survey of 1,018 people from the US, Germany , and Korea in regards to their usage of Facebook and Twitter, The study is structured to explore functional motives for sustainable marketing behaviors. It is a psychological research into the mechanics of social marketing involvement. (RELEVANCE) The data in this study will be used to explore what makes social marketing appealing to businesses in regards to how it affects consumers. Although I do criticize the current state of social marketing; there must be some data given to why it is still better than other more traditional forms of marketing.

(3) Yaakop, Azizul. "Like It Or Not: Issue Of Credibility In Facebook Advertising." Asian Social Science 9.3 (2013): 154-163.Academic Search Premier. Web. 16 Oct. 2013. (SUMMARY) This study explores the issues of credibility and privacy trust in advertising on social networks. A total of 350 respondents participated in the study of attitudes towards advertising on social networks. The data will be used to assess the most important factors that contribute to the attitude of most users to advertising on Facebook. (Relevance) The data in this study will be utilized to explore whether my central argument holds in regards to user reaction to social advertising. Because the study is very focused on attitudes; inferential conclusions will be able to be drawn from the data in regards to the effectiveness of these particular models of advertising. The data will also point out what is effective in the current model and I can compare and contrast with my proposed solution.

(4) Shin, Dong-Hee. "User Experience In Social Commerce: In Friends We Trust." Behaviour & Information Technology 32.1 (2013): 52-67. Academic Search Premier. Web. 16 Oct. 2013 (SUMMARY) This study examines consumer behaviors in social commerce. Utilizing survey and interview research methods to examine trust and other factors that influence attitudes towards social commerce, the study then applies scale and factor analysis and probability theory to examine the results. (RELEVANCE) The data involved in this study is directed at the transactional part of social commerce and the analysis that it offers will be of some assistance in giving some support to the solution that I propose in regards to social advertising because my solution involves an element of transactional functions. The study of the behavior involved in the transactional part of social commerce will also be useful in contrasting the behavior that is generated by more display oriented methods of social marketing.

(5) Hulkower, Billy. Social Networking - US June 2013. June 2013. Mintel. Web. 15 October, 2013. (SUMMARY) Demographic, usage data of social networks and activities, behaviors, and attitudes towards advertising on social networks as of June 2013 are in this report. This report also has the market size, forecast, trends, and list of companies in the space. This is a market report. (RELEVANCE) The data contained in this report is useful for hard support or evidence contrary to my arguments in regards to social advertising. The list of companies and trends will also spur further research that may bring up more focused and even more relevant research. (6) ODonnell, Fiona. Living Online US July 2012. July 2012. Mintel. Web 15 October, 2013. (SUMMARY) This is general data regarding what drives internet activity and what activity is being done online. The focus is on attitudes towards online usage and the demographic data behind those attitudes. (RELEVANCE) The data regarding what drives certain types of behavior that is in this report will provide background for much of my further research into drivers of particular social network activity. The attitudes inferred by the data will also shape the background to how my research is structured.

[Secondary Source] (1) McGonigal, Jane. Reality Is Broken: Why Games Make Us Better and How They Can Change the World. New York: Penguin Group, 2011, Print. (SUMMARY) Reality Is Broken shows how games can be leveraged to fix, change, and affect the real word. From fixing social problems like depression and obesity to having an effect on global issues like poverty and climate change; Jane McGonigal shows examples of games, design concepts and experiences that have progressed beyond the mediums entertainment beginnings.

(RELEVANCE) I will be utilizing some of the concepts and examples contained within to illustrate and support some of the major ideas contained in my argument. The basic tenet of the effect that games can have on the real world will be one of the themes that I continue to use throughout my paper.

(2) Andresen, Katheryn A.1. "Marketing Through Social Networks: Business Considerations--From Brand To Privacy." William Mitchell Law Review 38.1 (2011): 290-327. OmniFile Full Text Select (H.W. Wilson). Web. 16 Oct. 2013. (SUMMARY) This article examines the commercial aspects of social networks like marketing and expansion of services. The article looks at the business and legal risks associated with these commercial activities on social networks. Privacy implications are also explored in this article. (RELEVANCE) This article will provide more detailed legal and business considerations into the issues involved with social marketing. Because the issue of invasiveness is a part of my argument; this article will be invaluable in regards to the issue of privacy; particularly from a legal standpoint. (3) Gansky, Lisa. The Mesh: Why the Future of Business Is Sharing. New York: Portfolio, 2010, Print. (Summary) This book looks at the concept of crowdsharing, funding, and consumption. Examples and case studies of these models are detailed and the logic behind these models are explained. (RELEVANCE) I am going to point out how crowdsourcing, crowdfunding will solve the issue of passivity and invasiveness that social marketing is currently plagued with. The examples and logic will be complementary to support the argument I will make.