Title: Does Liking by ‘Friends’ Enhance Persuasion? An Experimental Investigation in Social Media Authors: Dezhi Yin, Sam Bond, Han Zhang (all from Georgia Institute of Technology) Abstract: In contrast to traditional advertising, social media platforms allow ads to be framed according to the social context of the user. For example, a common assumption is that endorsement by ‘friends’ can leverage the power of social influence and increase advertising persuasiveness (e.g., Facebook ads ‘liked’ by friends, ‘Sponsored Stories’). Drawing on theories of source credibility and persuasion knowledge (e.g., Friestad and Wright 1994), this paper suggests a more complex relationship. We argue that compared to others in general, ‘friends’ are perceived as more credible sources of product/service information; however, the presence of friends in an advertisement also activates cognitions regarding ulterior motives of the endorsers and the appropriateness of the endorsing behavior. As the social distance of the endorser increases, his/her credibility diminishes rapidly but concerns about motives and appropriateness remain. Given sufficient social distance, therefore, a friend’s endorsement may even diminish advertising persuasiveness. These ideas were investigated using a between-subjects experimental design. Participants were asked to evaluate a hotel advertisement in one of three conditions: absence of friend endorsement (control), distant friend endorsement, and close friend endorsement. Analysis of attitude and choice measures revealed a common pattern: participants favored the hotel whose ad was endorsed by a close (vs. distant) friend. Furthermore, the control ad was significantly more persuasive than that endorsed by a distant friend (differences between control and close friend conditions were not significant). These findings highlight the importance of considering persuasion knowledge in social media contexts, offering important practical implications for the implementation of social advertising. Keywords: social advertising, persuasion knowledge, social distance, recommendations, electronic commerce, consumer decision-making