Big Brands & Facebook: Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrester Research October 8, 2007

Theme Facebook marketing requires communicating, not advertising

Agenda What are the demographics of Facebook users? What are some best practices for brand marketing on Facebook?

What are the demographics of Facebook users?

What are some best practices for brand marketing on Facebook?

Facebook’s demographics 60 million active users projected by end of 2007 Currently at 44 million active users Half of current users return daily Facebook also projects that 75% of worldwide users will be outside of college Source: Facebook

60 million active users projected by end of 2007

Currently at 44 million active users

Half of current users return daily

Facebook also projects that 75% of worldwide users will be outside of college

A drill down of Facebook’s US demographics 56.3% female 58.4% have some college education 14% are non-white 34% work as professionals, executives, sales, education, or technical 12% are full time students 12% have children under 16 Source: Nielsen//NetRatings

56.3% female

58.4% have some college education

14% are non-white

34% work as professionals, executives, sales, education, or technical

12% are full time students

12% have children under 16

Facebook’s international age distribution Source: Facebook internal data, September 2007

Facebook users have “aged” over the past year Source: Nielsen//NetRatings Note: These number differ significantly from Facebook’s internal data, which has 35+ as 6% of all users worldwide in September 2007 Percent of US Facebook users in each age group

Facebook demographics best practices Anticipate that the demographics will change rapidly over the next 12-18 months Adjust your marketing plans and plan for flexibility Beware of relying on what worked yesterday, especially with fickle college students and newbie 35+ users

Anticipate that the demographics will change rapidly over the next 12-18 months

Adjust your marketing plans and plan for flexibility

Beware of relying on what worked yesterday, especially with fickle college students and newbie 35+ users

Agenda What are the demographics of Facebook users? What are some best practices for brand marketing on Facebook?

What are the demographics of Facebook users?

What are some best practices for brand marketing on Facebook?

Microsoft handles IAB standard ad sales

Targeting beyond demos

Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories

Facebook Flyers give self-service control

Theme Facebook marketing requires communicating, not advertising

Sponsored Groups Group page with customized navigation, look & feel Usually includes a significant media buy to drive traffic to the sponsored group page Display ads and flyers Newsfeed targeting Costs usually in the six figures for a three month engagement Note that any company can set up a group for free

Group page with customized navigation, look & feel

Usually includes a significant media buy to drive traffic to the sponsored group page

Display ads and flyers

Newsfeed targeting

Costs usually in the six figures for a three month engagement

Note that any company can set up a group for free

Jeep treats social networks like another channel

Misses a chance to create a unique community

Victoria’s Secret also looks like an ad…

But the community is highly engaged

Crest White Strips case study Targeted 20 colleges Offered free concerts and movie screenings Live chat facilitate interactions Measured sales impact at nearby stores

Ernst & Young engages in a conversation to recruit college students

Sponsored Groups best practices Understand how similar groups meet/don’t meet needs already Create a unique experience that Enable discussion board, The Wall, photos, etc. Read and respond to comments Be transparent about your role and perspective

Understand how similar groups meet/don’t meet needs already

Create a unique experience that

Enable discussion board, The Wall, photos, etc.

Read and respond to comments

Be transparent about your role and perspective

Why applications on Facebook are different

Because I know Dave, his review has context

My colleague Peter Kim shares travel

Application best practices Create useful apps that model what friends do naturally – share info, experiences, and laughs Plan out how to make your app viral Get feedback from users once you launch

Create useful apps that model what friends do naturally – share info, experiences, and laughs

Plan out how to make your app viral

Get feedback from users once you launch

Recommendations Facebook marketing is about communicating, not advertising – so act appropriately Be a part of the Facebook experience More like content than advertising Tap into the reasons why friends share Listen, learn, and be ready to make mistakes

Facebook marketing is about communicating, not advertising – so act appropriately

Be a part of the Facebook experience

More like content than advertising

Tap into the reasons why friends share

Listen, learn, and be ready to make mistakes

Wal-Mart keeps trying – kudos for effort

Thank you Charlene Li +1 650/581-3833 [email_address] www.forrester.com blogs.forrester.com/charleneli