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Value of a Fan
1. A project for the
WFA DIGITAL NETWORK
March 2011
The value
of a fan?
2. This is an abridged
public version of
learnings
prepared for the
World Federation of
Advertisers.
Full report is available on request
to WFA members:
http://www.wfanet.org/en
3. Some background
• Challenge posed by WFA’s Digital Network
• MB & Dynamic Logic agreed to help
• Not about an arbitrary $ figure for media/ sales value
• All about how to build brand and optimise fan pages
• Bespoke reports already with participants – this report is an
abridged overview of findings for industry learning
• Many thanks to all WFA members who took part
4. Unique two phase research project:
combining two perspectives
Phase 1 Phase 2
Marketers Brand Fans
• How are they approaching • How and why are they
the use of social media? using brand fan pages?
• What do they expect from • Are fan pages improving
social media? brand opinions? How?
5. WFA members’ view: brand
value over business metrics
What do you consider to be “the value of a fan”?
85%
85%
80%
75%
50%
45%
15%
6. From liking
to love:
How fan
pages build
brands
7. 96% spending
more on social
Time and money versus expectation?
9. Fans already outspend non-fans by over 4x. The
fan page challenge is to deepen the relationship
Fans Non-Fans
4% Bonding 1%
62% Advantage 19%
67% Performance 31%
83% Relevance 37%
100% Presence 50%
13.4% Share of wallet 2.8%
Source: Brandz, 2010 global database
11. Listening is key to success
Ignoring social Thoughtfully integrated Jumping on
media, program bandwagon —
staying out of game "must be there"
• Less relevant/current • Ability to listen to • Consumers see right
and trustworthy consumers and through this — and it
• Complete loss of understand their needs kills credibility
control (consumers • Consumers co-own • Traditional marketing
define the brand by the brand and approaches alienate
themselves) evangelize consumers
Source: Firefly Language of Love
12. Phase Two:
Learning from our
brands’ fans
• 24 fan pages from large
companies
• Categories included
confectionery, alcoholic and
non-alcoholic drinks, personal
care and telecommunications
• US, UK, Australia, France,
Germany and Sweden plus
some global
13. Phase Two:
Methodology
Wall post:
"Dear BRAND fans,
your opinion is
important to us!
Please help us improve
this page by answering
our short 5 minute
survey."
14. We spoke mainly Visitors 5%
to existing fans...
Fans 95%
Virtually all page visitors
completing our surveys
were registered fans.
Fan Tenure (%)
More than a year 9
They had typically been 7-12 months 11
registered for 3-4 4-6 months 20
months. 2-3 months 32
Less than a month 19
Registered today 9
16. Bigger fan pages generally rated better
But number of fans doesn’t tell the whole story
High Correlation:
0.28
FanIndex Rating
Low
0 500,000 1,000,000 1,500,000
# of Fans
17. The FanIndex rating is a composite
measure
Recommendation
Overall opinion likelihood
“Very favourable” “Very likely”
FanIndex
Rating
Attention to brand
Revisit likelihood posts
“Very likely” “Pay a lot of attention,
read them regularly”
18. We diagnose drivers of the FanIndex rating
and then assess impact on brand measures
Fan page Impact on
attributes brand equity
Impact on
Fan page FanIndex
brand
content Rating appeal
Benefits of Impact on
being a fan engagement
20. Most pages we assessed are
delivering well on trust
Fan page attributes (agree strongly) %
Easy to use and navigate 55
Trustworthy source of information 48
Clear and uncluttered 45
Fun and engaging content 43
Useful information 42
Stylish design 39
Wide variety of information 37
New and innovative 36
Information I was looking for 35
21. The Language of Love has taught us:
maintain trust through transparency
Transparency
Expertise
Authenticity
Familiarity Likeability
Trust
Source: Firefly Language of Love
23. Appear as
news, never They must provide me
with information,
advertising. good knowledge
about the brand so
that I could share that
with friends like an
‘expert’
-Male, 19
Keep them
guessing
about what
comes next...
24. Fans most value news & information;
also contests and offers
Fan Page Benefits (Top Box) %
Latest news about the brand 62%
New product information 61%
Contests and giveaways 58%
Sales, discounts, coupons and special offers 55%
Allows me to show I like the brand 47%
Enjoy reading other people’s thoughts and
ideas
45%
Access to free downloads and virtual gifts 41%
I enjoy feeling part of a brand community 34%
Allows me share my thoughts and ideas 32%
It gives me a sense of status 13%
28. More frequent posts tend to result in a better
FanIndex rating
High
3 2 1
FanIndex Rating
Correlation:
0.46
4
5
0 10 20 30 40 50 60 70
Low # of Posts
29. Checklist Contests/
Giveaways
New
product
Expected info
Fun Expected
Differentiator
Variety Community
Differentiator Differentiator
Regular
posts
Expected Offers Trustworthy
Expected
brand news
Expected
Innovation Interaction
Differentiator Differentiator
30. Conclusions
• Fans pages of all sizes can build equity and
engagement, but as expectations increase, brands
have to keep pace
• Check your page against our expected checklist
• Then differentiate by going the extra mile in a way
which will achieve your specific brand objectives
• Post and comment frequently. Beware campaign
mentality: fan pages that ‘go quiet’ can have a
detrimental brand impact
• Commit considerable resource: community managers?
31. Further research
While this study has provided some fascinating initial
insights, there is still much to learn. Millward Brown and
Dynamic Logic hope in future to extend this work with
partners to explore areas such as:
• How responses to fan pages vary by category, country, user type
• How attitudes to fan pages change over time
• How attitudinal responses to fan pages link to behavioural and
engagement metrics
• How fan page quality relates to efficiency of fan recruitment and
retention
32. Further information
For further information about this study, please contact:
• WFA
Rob Dreblow
r.dreblow@wfanet.org
• Millward Brown/ Dynamic Logic
Duncan Southgate
Duncan.Southgate@millwardbrown.com
Juan Manuel Hernandez
JuanManuel.Hernandez@millwardbrown.com
Contact MB or DL to conduct your own bespoke fan page assessment