The Effect of Marketing Expenses and Social Media on Financial Performance: The Case of Nigeria

Abstract

Marketing and social media have an increasing impact on the sustainability and performance of financial institutions. Marketing expenditures, which are among the quantitative factors, and social media, which is a qualitative factor, affect the performance and profitability of financial institutions. In this context, it is extremely important to examine the relationship between marketing, social media, and corporate performance in financial institutions. In this scientific research, a model was created and tested by considering the number of social media followers of financial institutions, the number of marketing expenditures, and the variables of gross earnings and profit after tax. Regression method and correlation analysis were used to examine the relationships between the variables. The results of the analysis including regression, Kendall and Spearman show that there is a significant correlation between the number of users following the social media accounts of financial institutions and the gross earnings. Both the number of social media followers and the number of marketing expenditures positively affect the after-tax profit of financial institutions.