IT6506 · e-Business Technologies · Topic 6

Digital Marketing
Strategies — Quick Review

5 exam questions with concise summarised answers. Tap a question to expand.

01 Compare Social Influence Theory and Social Identity Theory, and explain how each applies to digital marketing. +

Social Influence Theory (Cialdini) explains persuasion through 6 principles:

  • Reciprocation — free trials/content create obligation to buy or share.
  • Commitment & Consistency — loyalty programmes and opt-ins tie users to the brand.
  • Social Proof — reviews, ratings, and influencer endorsements guide decisions.
  • Authority — expert partnerships and certifications build credibility.
  • Liking — relatable ambassadors and behind-the-scenes content build affinity.
  • Scarcity — countdown timers and limited stock create urgency (FOMO).

Social Identity Theory (Tajfel & Turner) says people form identity through group membership via three processes: Social Categorisation, Social Identification, and Social Comparison.

  • Build brand communities where customers share values.
  • Use social proof to reinforce the brand's in-group identity.
  • Align campaigns with causes that resonate with the target audience.
Key difference: Influence Theory = individual persuasion. Identity Theory = group belonging as a behaviour driver.
CialdiniFOMOIn-group/Out-groupTajfel & Turner
02 Describe how to set up a targeted Facebook ad campaign, covering objectives, audience options, and budget types. +

Setup steps in Facebook Ads Manager:

  • Go to facebook.com/business/tools/ads-manager, confirm payment details.
  • Click + Create and choose a Campaign Objective: Awareness, Traffic, Engagement, Leads, App Promotions, or Sales.
  • Declare Special Ad Categories if the ad covers credit, housing, employment, or politics.
  • Enable A/B Testing to compare two variants (images, copy, audience) shown to separate segments.
  • Enable Advantage Campaign Budget to let Facebook auto-distribute spend to best-performing ad sets.

Audience targeting types:

  • Core Audiences — demographics, interests, behaviours, and location.
  • Custom Audiences — re-engage people who already interacted with the business.
  • Lookalike Audiences — reach new users similar to best existing customers.

Budget models:

  • Daily Budget — average daily spend; may exceed by 25% on high-opportunity days, capped at 7× weekly.
  • Lifetime Budget — fixed total for the full campaign; Facebook distributes flexibly day to day.
Ads ManagerCore/Custom/LookalikeDaily vs LifetimeA/B Test
03 Identify the 7 types of social media sites a business must consider and explain why no single type is sufficient. +

The 7 social media site types:

  • Social Networks (Facebook, Twitter) — content sharing and two-way dialogue.
  • Social Streaming (YouTube, Twitch) — video/live content and sponsorships.
  • Social Search (Google, Yahoo) — search-driven discovery; SEO and paid ads.
  • Social Knowledge (Reddit, Quora, Wikipedia) — expert Q&A and subtle brand positioning.
  • Social Blogging (Company Blog/Forum) — owned long-form content and thought leadership.
  • Social Customer Service (Support portals, Twitter) — public real-time complaint handling.
  • Social Bookmarking (Pinterest) — visual discovery for identifying trending content.

No single type covers the full consumer journey — from discovery (search, bookmarking) → consideration (knowledge, reviews) → loyalty (networks, customer service). Each type has unique demographics, formats, and algorithms, so a multi-channel presence is essential for reach and engagement.

Multi-channelConsumer JourneyUGC
04 Compare Twitter and Instagram ad formats. Which platform suits a fashion accessories retailer, and why? +

Twitter ad formats:

  • Promoted Ads — Image, Video, Carousel (up to 6 cards), Moment, Text.
  • Follower Ads — grow account following.
  • Twitter Amplify — Pre-roll and Sponsorship video ads alongside publisher content.
  • Twitter Takeover — Timeline (top-of-feed) and Trend Takeover (alongside trending topics).
  • Dynamic Product Ads (DPA) — retargeting and prospecting via product catalogue.
  • Collection Ads — 1 hero image + up to 6 thumbnails, each with separate destination.

Instagram ad formats: Image, Story, Video, Carousel, Collection, Explore, Shopping, and Reels Ads — all managed through Meta Business Suite with full Facebook targeting.

Recommendation: Instagram for a fashion retailer, because:

  • Visual-first platform — high-quality imagery drives purchase intent in fashion.
  • Shopping Ads allow direct product tagging and in-app checkout, compressing the funnel.
  • Reels Ads align with trending fashion content (styling, unboxings).
Instagram ShoppingReels AdsTwitter DPAMeta Business Suite
05 Define Social Media Marketing and evaluate how Meta Business Suite, A/B testing, and Advantage Budget optimise campaigns. +

Social Media Marketing is the monitoring and facilitation of customer–customer interaction across the web to encourage positive brand engagement, occurring on company sites, social networks, and third-party platforms.

Meta Business Suite (business.facebook.com) provides centralised management of Facebook and Instagram:

  • Single dashboard for notifications, inbox, posts, stories, and ads across both platforms.
  • Unified Insights for audience and performance analytics.
  • Connects Instagram business accounts to Facebook's ad targeting infrastructure.

A/B Testing — compares two ad variants shown to separate non-overlapping audience segments. Variables: images, copy, audience, or placement. Determines the better performer statistically. Limitation: requires sufficient budget and audience size to be conclusive.

Advantage Campaign Budget — sets one budget at campaign level; Facebook's algorithm reallocates spend in real time to best-performing ad sets. Limitation: can under-invest in newer ad sets with less data, potentially creating a performance feedback loop. Ad-set spending caps can mitigate this.

A/B testing provides directional learning; Advantage Budget provides dynamic execution — they are complementary tools.
SMM DefinitionMeta Business SuiteA/B TestingAdvantage BudgetROAS