Big Brands & Facebook: Demographics, Case Studies & Best Practices

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?

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

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

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

Agenda
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

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

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

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

Wal-Mart keeps trying – kudos for effort

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

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Big Brands & Facebook: Demographics, Case Studies & Best Practices

by Charlene Li

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