Social media and the power of peer-to-peer recommendation can boost revenue streams and brand loyalty, according to a new survey from CNN.
The results of a CNN inaugural study into the power of news and recommendation (POWNAR), showed a "halo effect,” with substantially higher engagement around recommended content compared with randomly consumed content, said Didier Mormesse, senior VP of R&D and audience insight at CNN International.
“The commerciality of the social media space is fast becoming apparent and this study means that for the first time, we are able to substantiate the value of shared news from an advertising perspective", said Mormesse.
The study followed the viewing and sharing behaviour of 2,300 respondents worldwide and found that the overall uplift for brands advertising around shared stories was significant.
People who received news content from a friend via social media were 19% more likely to recommend the brand that advertised around the story to others, and 27% were more likely to favour that brand themselves.
"Knowing the typology of shared content is significant as the information could be used by agencies as a guideline to mould creative and therefore make their advertising more effective to consumers," Mormesse added.
The survey follows comments by Facebook EMEA head and former Google exec Joanna Shields at Mipcom on Tuesday, when she told delegates that 'share' is the new 'search.'
In her keynote speech she said: "It is vitally important for all content companies to understand that they can harness the power of Facebook to build an audience, and they do this by understanding 'share' not 'search.'"
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