Optimizing ROI: A Cross-Sector Analysis of Social Media Advertising Performance
DOI:
https://doi.org/10.69569/jip.2025.721Keywords:
Advertising effectiveness, Consumer behavior, Digital marketing, Influencer marketing, Social media marketingAbstract
This paper addresses the underexplored gap in cross-sectoral comparisons of social media advertising effectiveness across the fashion, consumer electronics, and food and beverage industries. Using secondary data collected from 2020 to 2024, encompassing major platforms such as TikTok, Instagram, Facebook, and YouTube, the study conducted descriptive statistics and content analysis to examine engagement metrics, conversion rates, and consumer attitudes. The Elaboration Likelihood Model (ELM) provided the theoretical underpinning, differentiating between central and peripheral routes of persuasion. Results showed that the fashion industry achieved the highest engagement and conversion rates, primarily through visual storytelling and influencer collaborations, with TikTok engagement exceeding 2%. The electronics industry benefited most from detailed information and reviews on platforms like YouTube. In contrast, the food and beverage industry experienced increased trial purchases through shareable content on TikTok, with share rates 12% higher than on other platforms. On average, higher ad expenditures were a leading indicator of sales growth by sector. However, concerns over privacy, ad fatigue, and ethical issues persist. The study highlights the importance of developing tailored industry strategies to adapt to the evolving digital landscape. Further research, utilizing both longitudinal and primary data, is necessary to investigate the long-term effects of social media advertising and the impact of emerging technologies.
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