L2 Facebook IQ 2012
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L2 Facebook IQ 2012

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L2 Think Thank 2012 Facebook IQ study ranks the 100 prestige brands for the digital competence on Facebook.

L2 Think Thank 2012 Facebook IQ study ranks the 100 prestige brands for the digital competence on Facebook.

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L2 Facebook IQ 2012 L2 Facebook IQ 2012 Presentation Transcript

  • June 12, 2012 Facebook IQ INDEX ®SCOTT GALLOWAYNYU Stern © L 2 2012 L 2 ThinkTank.com Reproductions Prohibited
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® TOMORROW today becomes On the date of its IPO, Facebook was worth more than LVMH, PPR, and Richemont combined. Ten days on, the stock had lost a third of its value. The culprit? Facebook investors shifted the measurement stick from promise to performance. Similarly, the marketing and digital professionals at prestige organizations charged with building and engaging communities on the world’s biggest platform will face Facebook IQ Index® Video Click to Play heightened expectations and scrutiny. As tomorrow becomes today for prestige executives, the issue of what, and how, return is achieved on Facebook takes center stage. Missing the “Social” in Social Media Prestige communities grew more than 200 percent year over year as brands began investing in Facebook advertising. However, the industry is still struggling to embrace the “social” in social media. More than 20 percent of prestige brands still do not engage in any two-way conversation, and a third prohibit fan posts on their Facebook walls. The growth coupled with numb response times has led to a decline in engagement rates of almost 50 percent since our first Facebook IQ Index® in June 2011.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 2
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Facebook Is Local Facebook IQ = Shareholder Value A bright spot for prestige brands on Facebook is growth and Our thesis is that competence on Facebook is linked to engagement in emerging markets, mimicking some of the shareholder growth and is a proxy for innovation within an macro growth trends in the industry. Forty-one percent of brands organization. This study, released with our partners at Buddy Media, now maintain at least one local country page. These local Facebook attempts to quantify the Facebook competence of 100 iconic brands pages have grown at twice the rate of Global and U.S. prestige across Beauty, Fashion, Specialty Retail, and Watches & Jewelry. communities and register 50 percent higher engagement. Facebook’s Our aim is to provide a robust tool to diagnose digital strengths and Most Popular City data provides further evidence that the center of weaknesses and help managers at prestige brands achieve greater gravity is shifting in the industry. More than 44 percent of prestige return on incremental investment. brands, including many icons, register an emerging-market city (e.g., Like the platform we are assessing, our methodology is dynamic Taipei, Tbilisi, Tunis, etc.) as the top place where people are talking and we hope you will reach out with comments that improve our about the brand on Facebook. methodology, investigation, and findings. You can reach me at scott@stern.nyu.edu. Icons Strike Back Regards, A lot has changed since the first Facebook IQ Index® a year ago. Some of the prestige industry’s iconic brands are this year’s biggest winners, including Bulgari, Christian Dior, and Cartier, which all catapulted from Challenged to Gifted on the backs of massive Scott Galloway community growth, innovative programming, and stronger integration. Founder, L2 Notorious digital laggard Prada finally joined the Facebook party in Clinical Professor of Marketing, January 2012, moving from Feeble to Average. However, the Facebook NYU Stern IQ top 10 is still dominated by retailers and beauty brands that have been deft at facilitating higher rates of engagement via user- generated content and local pages and posts.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 3 View slide
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® TABLE OF CONTENTS Click to Jump-To: 05 Methodology 29 Flash of Genius 06 Facebook IQ Rankings 29 In the Company of Genius: Macy’s 31 Global Citizen (Pretty Powerful): Bobbi Brown 06 Genius 32 Scale + Data: Burberry 07 Gifted 33 Mother’s Day: L’Occitane 09 Average 34 Facebook in Japan: Coach 11 Challenged 35 Bring It Back: Bobbi Brown & M·A·C 12 Feeble 36 Facebook Offers: Kate Spade & Macy’s 37 Miracle Maker: SK-II 13 Key Findings 38 Pilot Aptitude Test: IWC 13 Facebook Growth 14 The Timeline Effect 15 Declining Engagement 17 Facebook Is Local 21 F-Commerce Failing 24 Fan & Content Engagement 28 Facebook Integration© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 4 View slide
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® ABOUT THE RANKING Facebook IQ Classes Genius 140+ Facebook competence is a point of competitive differentiation for these brands Gifted 110–139 35% 20% Brands demonstrate a comprehensive Size & Growth Programming understanding of Facebook marketing and continue to grow their fan bases while 35% Engagement 10% Integration experimenting with programs and tabs Average 90–109 Lack of innovation categorizes the Facebook The Methodology efforts of these brands Size & Growth 35% Programming 20% Integration 10% Challenged 70–89 Size and growth on the platform Brand content, responsiveness, and innovation Integration of Facebook across brand digital platforms These brands have gone through • Number of “Likes” • Customized tabs and interactive applications • Promotion of Facebook page on other digital properties including: site, mobile, social media, the motions of establishing a Facebook • Growth Rate • Response frequency and speed email marketing, and blogs presence but have yet to allocate • Absolute Growth • Use of gated tabs • Search engine visibility financial or creative horsepower • Global Community • Posting frequency • Incorporation of additional social media properties • Brand photos and videos • Shareability of site content • F-commerce and e-commerce integration Engagement 35% • Facebook advertising and offers • Social shopping and Facebook Connect • Customer service accessibility Fan reaction and interaction • Innovative campaigns • Fan engagement with brand posts Feeble <70 • Number of fan posts • Fan engagement with fan posts Weak or no official presence on the world’s • Fan participation in programs and applications largest and fastest growing platform • Fan photos and videos© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 5
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Genius Brands = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C Tiffany & Co.RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Lacoste Louis Vuitton Clinique Coach 1 Gucci Cartier Fendi Tommy Hilfiger This Timeline pioneer’s page is big, Bobbi Brown Burberry growing, and well-integrated across Jimmy Choo 161 channels; Constantly updated program- Baume et Mercier Nordstrom Tory Burch ming sets the bar Bottega Veneta Chanel Chloé Marc Jacobs AVERAGE Hugo Boss TAG Heuer Prada Versace Calvin Klein 2 Elizabeth Arden Dolce & Gabbana Giorgio Armani Ralph Lauren Saks Fifth Avenue Jaeger-LeCoultre From geo-targeted special offers to Alexander McQueen 148 fully-functional gift card F-commerce Bally Barneys New York application, beauty maven delivers NARS L’Occitane en Provence Clarins David Yurman Montblanc SK-II Harrods Chopard Omega Neiman Marcus Yves Saint Laurent 3 Galeries Lafayette Movado NET-A-PORTER Origins Hermés Hypnose Doll Eyes app and Rouge CHALLENGED Boots in Love Lookbook provide a lesson 146 Harry Winston Piaget on rolling out programming across Hublot Shiseido geographies Vacheron Constantin Bergdorf Goodman Kate Spade Valentino Kiehl’s Bloomingdale’s Philosophy Officine Panerai Salvatore Ferragamo Longines 3 Perricone MD Le Bon Marché Rive Gauche Audemars Piguet Diane von Furstenberg House of Fraser Outstanding integration across digital Selfridges 146 Raymond Weil properties complements exceptional FEEBLE Donna Karan New York growth in Facebook fan base Van Cleef & Arpels Max Mara Ermenegildo Zegna Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 6
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Gifted Brands = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C Tiffany & Co. RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Lacoste Louis Vuitton Clinique Coach Stirring "Pilot Aptitude Test" game app 5 14 Gucci 138 125 Icon boasts luxury’s third-largest fan base Cartier catapults watchmaker to top of category Fendi Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo "Social Shop" takes Facebook commerce Quick responder to fan comments Baume et Mercier 6 16 Nordstrom 133 site-side; "Lights, Camera, Action" app 124 Tory Burch delights and concerns Bottega Veneta Chanel Chloé Marc Jacobs AVERAGE Strong community growth and interactive Facebook-exclusive products provide entry Hugo Boss 7 131 apps compensate for average engagement 16 124 point to brand; exceptional engagement TAG Heuer Prada Versace and integration on wall Calvin Klein Elizabeth Arden Dolce & Gabbana Giorgio Armani Ralph Lauren 8 129 Stellar growth offsets average engagement 18 123 Best-in-show integration Saks Fifth Avenue Jaeger-LeCoultre Alexander McQueen Bally Barneys New York NARS L’Occitane en Provence Facebook-integrated "Shop Together" Clarins 9 128 "Virtual Clothes Model" app scores 18 123 feature complements impressive size David Yurman Montblanc SK-II and growth of global community Harrods Chopard Omega Neiman Marcus Yves Saint Laurent Seamless integration of “What Makes 10 127 Strong across all dimensions 18 123 Love True” microsite Galeries Lafayette Movado NET-A-PORTER Origins Hermés CHALLENGED Boots Early adopter gets Facebook Connect Rapidly growing Facebook fan base Harry Winston 10 127 and power of local programming 21 122 is the second-largest Piaget Hublot Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Valentino "You Create, We Donate" app threads More than 200 percent year-over-year Kiehl’s 12 126 UGC and CSR 22 120 growth and high engagement Bloomingdale’s Philosophy Officine Panerai Salvatore Ferragamo Longines Perricone MD Le Bon Marché Rive Global page strikes balance between Fans are encouraged to rate and review Gauche 12 126 size and engagement 23 119 their favorite products Audemars Piguet Diane von Furstenberg House of Fraser Selfridges Raymond Weil FEEBLE Donna Karan New York Community-oriented page is integrated Fosters dialogue via responsiveness 14 23 Van Cleef & Arpels 125 119 Max Mara across brand’s wider digital footprint to its formidable community Ermenegildo Zegna Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 7
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Gifted Brands continued... = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Tiffany & Co. Lacoste Louis Vuitton Clinique Coach Gucci pushes opportunity to Connect with "Facebook Shop" still garners 8,000 25 32 Gucci 116 112 Cartier its 8 million fans monthly users a year later Fendi Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo “L’Odyssée de Cartier” campaign threads Baume et Mercier Brand programming on the rise; fan growth 26 35 Nordstrom 114 traditional and social channels inspiring 50 111 Tory Burch should follow Bottega Veneta percent fan growth in 30 days Chanel Chloé Marc Jacobs AVERAGE Hugo Boss Strong page growth but programming Fan engagement is sorely missing from this 26 114 needs a refresh 35 111 6.6 million strong page TAG Heuer Prada Versace Calvin Klein Elizabeth Arden Dolce & Gabbana Giorgio Armani Ralph Lauren "Get Prepped" app outfits Facebook com- Integrated "LEau de Chloé" contest com- 26 114 munity 35 111 bines Mobile, Tumblr, and Facebook Saks Fifth Avenue Jaeger-LeCoultre Alexander McQueen Bally Barneys New York NARS L’Occitane en Provence Clarins Needs better Facebook integration on site to 29 113 Deft global community management 35 111 complement strong engagement David Yurman Montblanc SK-II Harrods Chopard Omega Neiman Marcus Yves Saint Laurent Behemoth community, one of three brands 29 113 experimenting with Facebook Connect Galeries Lafayette Movado NET-A-PORTER Origins Hermés CHALLENGED Boots Should leverage “Stylemakers” program Harry Winston 29 113 to boost UGC Piaget Hublot Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Valentino Extensive programming including “What Kiehl’s 32 112 Do You Think?” poll keeps fans engaged Bloomingdale’s Philosophy Officine Panerai Salvatore Ferragamo Longines Perricone MD Le Bon Marché Rive “Share Your Stories” solicits UGC while Gauche 32 112 custom tabs buttress integration Audemars Piguet Diane von Furstenberg House of Fraser Selfridges Raymond Weil FEEBLE Donna Karan New York Van Cleef & Arpels Max Mara Ermenegildo Zegna Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 8
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Average Brands = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C Tiffany & Co.RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Lacoste Louis Vuitton Clinique Coach Delivers first luxury 3D experience Social media "Mad About Reverso" poster 39 49 Gucci 107 101 Cartier to the social network contest combines Instagram and Facebook Fendi Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo No custom tabs and low fan engagement Baume et Mercier Interactive "Apollo Project" app live-streams 39 50 Nordstrom 107 100 signal missed opportunity to capitalize on Tory Burch webcast via Facebook Bottega Veneta large fan base Chanel Chloé Marc Jacobs AVERAGE Hugo Boss Community is still small despite almost 41 106 Late to platform, but hit ground running 50 100 200% growth year over year TAG Heuer Prada Versace Calvin Klein Elizabeth Arden Dolce & Gabbana Giorgio Armani Ralph Lauren Lackluster programming and absence 41 106 of UGC weaken brands presence 50 100 "Mothers Day Contest" reflects potential Saks Fifth Avenue Jaeger-LeCoultre Alexander McQueen Bally Barneys New York NARS L’Occitane en Provence Clarins Tackles global vs. local dilemma with 43 105 multilingual tabs 50 100 Site and social media integration fall short David Yurman Montblanc SK-II Harrods Chopard Omega Neiman Marcus Yves Saint Laurent Beauty Buzz tab highlights must-haves Tailors content for its 54 local pages across 43 105 and games 54 98 the globe Galeries Lafayette Movado NET-A-PORTER Origins Hermés CHALLENGED Barring fan posts, photos, or videos misses Boots "Spa Life" app garners 50,000 monthly Harry Winston 45 103 opportunity to engage with 5.4 million 55 97 users, uninspired elsewhere Piaget Hublot followers Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Valentino Rapid growth overshadowed by anemic Additional programming would complement Kiehl’s 45 103 engagement 55 97 steady growth Bloomingdale’s Philosophy Officine Panerai Salvatore Ferragamo Longines Perricone MD Le Bon Marché Rive "Life in Color" app delivers compensates Leverages platform for CSR Gauche 45 103 for low engagement 57 96 and customer service Audemars Piguet Diane von Furstenberg House of Fraser Selfridges Raymond Weil FEEBLE Brand skillfully employs social media cross- Best-in-class engagement via fan Donna Karan New York 45 57 Van Cleef & Arpels 103 promotion with "See U @Saks" Instagram 96 photos, videos, posts, and participation Max Mara Ermenegildo Zegna feed and Pinterest custom tab in "Compliments" app Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 9
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Average Brands continued... = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Tiffany & Co. Lacoste Louis Vuitton Clinique Coach "Harrods Window" Pinterest contest allows Combines UGC and CSR encouraging users 59 64 Gucci 95 92 Cartier users to vote via Facebook tab to create and share environmental pledges Fendi Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo Baume et Mercier “Happy Diamonds” mobile to Facebook Better integration would boost weak 60 68 Nordstrom 94 91 Tory Burch application signals innovation year-over-year growth Bottega Veneta Chanel Chloé Marc Jacobs AVERAGE Hugo Boss Brand needs additional programming 60 94 to sustain fan activity TAG Heuer Prada Versace Calvin Klein Elizabeth Arden Dolce & Gabbana Giorgio Armani Ralph Lauren "NM@SWSX Contest" app cleverly blends 62 93 offline and online Saks Fifth Avenue Jaeger-LeCoultre Alexander McQueen Bally Barneys New York NARS L’Occitane en Provence Clarins 62 93 Limits engagement by inhibiting fan posts David Yurman Montblanc SK-II Harrods Chopard Omega Neiman Marcus Yves Saint Laurent Responds to fan posts and frequently 64 92 refreshes content Galeries Lafayette Movado NET-A-PORTER Origins Hermés CHALLENGED Boots Misses opportunity to integrate Facebook Harry Winston 64 92 and site Piaget Hublot Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Seamlessly integrates Facebook with social Valentino Kiehl’s 64 92 media, marketing, blog, site, and customer Bloomingdale’s Philosophy service efforts Officine Panerai Salvatore Ferragamo Longines Perricone MD Le Bon Marché Rive Gauche Audemars Piguet Diane von Furstenberg House of Fraser Selfridges Raymond Weil FEEBLE Donna Karan New York Van Cleef & Arpels Max Mara Ermenegildo Zegna Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 10
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Challenged Brands = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Tiffany & Co. Lacoste Louis Vuitton Clinique Cross-platform "Facebook Fan Favorites" Coach Encourages fan content through 69 89 “Say Yes” competition 79 83 features popular products on site, Gucci Cartier Fendi but stagnant fan growth hurts IQ Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo High fan-to-brand engagement Engaged fan base and strong cross-platform 69 81 Baume et Mercier 89 82 Nordstrom is a bright spot social media integration, but lacks growth Tory Burch Bottega Veneta Chanel Chloé Marc Jacobs New “like”-gated competition is a step Not allowing fans to post 69 81 AVERAGE 89 82 Hugo Boss in the right direction is missed opportunity TAG Heuer Prada Versace Calvin Klein Elizabeth Arden 72 83 Dolce & Gabbana 87 “Live Series” tab fails to deliver engagement 80 Limited programming and growth Giorgio Armani Ralph Lauren Saks Fifth Avenue Jaeger-LeCoultre Alexander McQueen Bally Brand scores points with diverse, fresh Perricones 30,000 strong, highly-engaged Barneys New York 72 87 programming across all of its local pages 83 80 fan base has room to grow NARS L’Occitane en Provence Clarins David Yurman Montblanc SK-II “Our World” tab highlights wealth With fewer than 10,000 likes, brands Harrods 74 86 of digital properties 85 77 community is smallest in Index Chopard Omega Neiman Marcus Yves Saint Laurent Galeries Lafayette Movado NET-A-PORTER Leverages employees with "What Im wearing Abundant Facebook content 75 85 today", but held back by slow fan growth 86 75 is not shareable Origins Hermés CHALLENGED Boots Harry Winston Piaget Hublot Testing Facebook offers and "Surprise Sale" Early F-commerce adopter 75 85 but falters on engagement 87 74 has stopped innovating Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Valentino Kiehl’s Weekly competitions fuel highest Bloomingdale’s 75 87 Philosophy 85 Treats page as a broadcast channel 74 year-over-year growth in the Index; Officine Panerai Salvatore Ferragamo programming needs to catch up Longines Perricone MD Le Bon Marché Rive Gauche One of only ten brands that integrates British retailer integrates Pinterest, Instagram, 78 87 Audemars Piguet 84 74 Diane von Furstenberg ratings and reviews through Facebook and Twitter, but lacks interactivity House of Fraser Selfridges Raymond Weil FEEBLE Interactive "Prom 2012" app shines, Donna Karan New York Strong social media integration overshadowed 79 90 Van Cleef & Arpels 83 but work needed to integrate Facebook 72 Max Mara by limited growth Ermenegildo Zegna features on site Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 11
  • GENIUS Facebook IQ Macy’s Sephora Lancôme Michael Kors INDEX ® GIFTED IWC Smashbox Swarovski United Colors of Benetton El Corte Inglés Esteé Lauder Pandora Aveda = Beauty & Skincare = Specialty Retail FACEBOOK IQ RANKING Bulgari Feeble Brands = Fashion = Watches & Jewelry Bare Escentuals Christian Dior Marks & Spencer Oscar de la Renta Benefit Cosmetics M∙A∙C Tiffany & Co. RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION Lacoste Louis Vuitton Clinique One of seven brands utilizing platform Coach 91 Gucci 68 Fashion icon doesn’t allow fan posts 99 45 for HR, but consumer-facing efforts Cartier Fendi are unfocused Tommy Hilfiger Bobbi Brown Burberry Jimmy Choo Lackluster performance across Baume et Mercier 92 64 all dimensions 100 37 Active fans keep unofficial page going Nordstrom Tory Burch for this iconic non-believer Bottega Veneta Chanel Chloé Marc Jacobs AVERAGE Site content is not shareable; Facebook 93 Hugo Boss 63 TAG Heuer page features no recent programming Prada Versace Calvin Klein Elizabeth Arden Dolce & Gabbana Giorgio Armani Innovating with augmented reality, but must 94 Ralph Lauren 58 Saks Fifth Avenue grow fan base to become relevant Jaeger-LeCoultre Alexander McQueen Bally Barneys New York NARS One of only two brands in the study that L’Occitane en Provence 95 Clarins 55 have yet to join the platform, keeping David Yurman Montblanc 300,000 fans waiting SK-II Harrods Chopard Omega Neiman Marcus Page features beautiful visuals but 96 Yves Saint Laurent 54 Galeries Lafayette community is less than 20,000 Movado NET-A-PORTER Origins Hermés CHALLENGED Boots Strong integration scores are hindered 96 54 by limited size and growth Harry Winston Piaget Hublot Shiseido Vacheron Constantin Bergdorf Goodman Kate Spade Valentino 98 52 No custom tabs nor UGC Kiehl’s Bloomingdale’s Philosophy Officine Panerai Salvatore Ferragamo Longines Perricone MD Le Bon Marché Rive Gauche Audemars Piguet Diane von Furstenberg House of Fraser Selfridges Raymond Weil FEEBLE Donna Karan New York Van Cleef & Arpels Max Mara Ermenegildo Zegna Rolex Baccarat Harvey Nichols DeBeers Printemps Patek Philippe© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited Want to know more about your brand’s ranking? Contact us 12
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings A V E R A G E “ L I K E S ” P E R D AY Still Growing Prestige Brand Facebook Communities Facebook communities remain on an impressive (Q1 2011– May 20, 2012) trajectory, up an average 216 percent year on year— adding an average 750,000 fans/brand since May 2011. Dior led the pack, catapulting from 900,000 to over 3,500 8 million fans in a year. Peer icons Burberry and Louis Vuitton have also added more than 5 million fans each. 3,000 2,500 2,000 “Facebook is not like Twitter, where a user sees every 1,131 1,7 Q1 31 post in their feed. Facebook’s EdgeRank algorithm 23 1,7 Q2 Q2 decides what content a user sees. Prestige brands 2012 need to master how all of their Facebook content works together—from Newsfeed posts to apps to advertising. There is no difference between content and ads. The savviest brands are using Facebook ads to amplify their most engaging content. ” 2011 Q3 – Michael Lazerow | CEO, Buddy Media 19 1,5 Q1 Q4 3,4 1,552 38© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 13
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings continued... T O P- 1 0 FAs T E S T- G R O W I N G FA C E B O O K PA G E S YOY Absolute Growth in “Likes” Analysis indicates that the first quarter of 2012 was the (May 2011– May 2012) strongest to-date for prestige communities, with brands FASHION SPECIALTY RETAIL adding an average of nearly 3,500 fans per day, double the previous average. Although attribution is opaque, our thesis is that brands ramped their investment in 765% Facebook advertising in anticipation of the Timeline 107% launch (some brands received beta access) and as hype for Facebook’s IPO grew. However, analysis suggests the move to the Timeline interface throughout February and March in and of itself does not drive growth. Prestige brands added 125 204% percent percent more fans in the 50 days before, vs. 50 days after, the Timeline launch. 70% 199% 79% 79% 187% 88% The Timeline Effect? LOUIS VUITTON 5,112,527 174% CALVIN KLEIN 2,685,792 Average Prestige Brand Page Growth BURBERRY 6,642,713 DOLCE & GABBANA LACOSTE 3,967,299 CHANEL 2,922,600 MACY’S 3,718,928 TOMMY HILFIGER Before & After Timeline Launch GUCCI 3,511,623 DIOR 7,063,933 2,093,793 2,507,071 T imeline 50 days 50 days 192,921 85,762 New Fans New Fans© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 14
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® T O P- 1 0 FA C E B O O K PA G E s Key Findings Like & Comment Interaction Rate (Pages > 50,000) (May 2012) Engagement Declining Audemars Piguet 0.36% While community growth is up, engagement is down Omega 0.28% significantly year on year. The average interaction rate, or the percentage of the community liking—commenting on Van Cleef & Arpels 0.27% brand posts—has declined almost 50 percent, from an Bally 0.24% average of 0.17% in 2011 to 0.09% in 2012. Surprisingly, Facebook pages with less than a million fans measured Cartier 0.21% the highest declines. Pages with more than a million fans Bulgari 0.20% registered average declines in interaction of just 0.01%, suggesting that brands that invested significantly in page Jaeger-LeCoultre 0.18% growth also work to optimize their content. David Yurman 0.16% Although many Watch & Jewelry brands were late to the Facebook game, the category leads the Index with an Piaget 0.16% average interaction rate of 0.18% and registered the lowest decline year over year. Valentino 0.15% A V E R A G E I N T E R A C T I O N R AT E BY C AT E G O R Y (2011 vs. 2012) 0.20% 2011 0.18% 0.16% 2012 0.13% 0.08% 0.05% 0.04% N/A Watches & Jewelry Fashion Beauty & Cosmetics Specialty Retail© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 15
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings FA C E B O O K PA G E S I Z E V S . FA N E N G A G E M E N T Size vs. Engagement (April – May 2012) Few prestige brands are able to thread the needle between size and engagement. In the 2012 Index, Christian Dior & Tiffany & Co. strike this balance, registering a position FAMILIES TRIBES in the “Tribes” quadrant. Although Dior’s engagement has dropped significantly, from 0.18% to 0.10%, since the September 2011 release of our Digital IQ Index®: Beauty, Vacheron Constantin the brand has registered the largest fan growth of any brand in the Facebook Index. Despite a community of 8 Officine Panerai Brands in the “tribes” million plus, the brand continues to exceed the average Audemars Piguet category Brands narrowing on interaction rate of 0.09% with a wealth of celebrity content OMEGA Watches “tribes” category from its recently launched digital magazine, Dior Mag. Cartier Tiffany & Co.’s community of 2.2 million plus is one of the largest in its category. The brand has maintained a Bulgari Michael Kors disciplined commitment to extending the tips and user- ENGAGEMENT Tiffany & Co. generated content from its “What Makes Love True” microsite to its Facebook wall. Dior Louis Vuitton Burberry COHORTS CROWDS pa ge size© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 16
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® LONDON Christian Dior M O S T P O P U L A R C I T Y BY B R A N D Key Findings Harrods Harvey Nichols City Where Most People are Talking About the Brand (May 2012) House of Fraser TAIPEI “It’s surprising not to see 100% of prestige brands Hugo Boss Jimmy Choo Bally LOCAL U.S. PAGE producing geo-targeted content. This is a massive NET-A-PORTER Burberry opportunity to make sure you’re delivering the right Ralph Lauren IWC Jaeger-Lecoultre content to the right person at the right time.” Raymond Weil Louis Vuitton Selfridges – Michael Lazerow | CEO, Buddy Media Alexander McQueen TBILISI Michael Kors DeBeers Piaget Dolce & Gabbana Salvatore Ferragamo NEW YORK CITY Boots Donna Karan New York Marks & Spencer Tiffany Audemars Piguet Max Mara Van Cleef & Arpels Bergdorf Goodman Valentino Chloe LOS ANGELES Bloomingdale’s Gucci Nordstrom Bottega Veneta Marc Jacobs David Yurman TEHRAN Coach Montblanc Macy’s Omega Aveda Smashbox Movado Cartier ATHENS Vacheron Constantin BANGKOK Neiman Marcus Hermès ISTANBUL Lacoste Oscar de la Renta Chopard NARS JAKARTA TAG Heuer Tommy Hilfiger Perricone MD Clarins Prada KARACHI Versace El Corte Ingles Saks Fifth Avenue TUNIS Swarovski KUALA LUMPUR SK-II Tory Burch MADRID Hublot LIMA United Colors of Benetton Calvin Klein Barneys New York Longines MAKATI Benefit Cosmetics Giorgio Armani Diane Von Furstenberg NEW DELHI PHOENIX Philosophy Emenegildo Zegna Elizabeth Arden RIYADH Harry Winston MEXICO CITY Bare Escentuals ROME Fendi Origins Baume et Mercier SÃO PAULO M·A·C Sephora Le Bon Marche Rive Gauche SEOUL Chanel Shiseido Baccarat SYDNEY Pandora Kiehl’s Printemps Bulgari Bobbi Brown Yves Saint Laurent Officine Panerai Estée Lauder Galeries Lafayette Kate Spade Clinique PARIS SINGAPORE Lancôme L’Occitane Emerging Centers of Gravity With the launch of Timeline, Facebook began publishing the these luxury capitals maintain local country Facebook accounts, Brands may be greeted with open arms in markets not “Most Popular City” for brand pages, indicating the city with the catering to each of their markets, or are single-market retailers. currently on their radar. highest concentration of “People Talking About This” (PTAT). More than 44 percent of prestige brands, including many “Most Popular City” data can also guide Facebook This metric is a map of global growth, emerging evangelists luxury’s icons, register an emerging market city (e.g., Taipai, programming, as many brands with global pages are and, over the longer term, sales. Tblisi, Tunis, etc.) as their top city, suggesting a tectonic shift targeting campaigns, posts, contests, and retail activities New York and London dominate the ranks of the prestige in the center of gravity for prestige. While firms invest millions at their traditional Western audiences, often restricting industry’s most popular Facebook cities, while Paris is fourth in “big data” tools and analysis, Facebook’s PTAT by city participation of geographies in which they are generating overall. However, the majority of brands that are popular in may be the most powerful compass for regional investment. significant engagement. © L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 17
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings size vs . eng a gement by countr y Facebook Is a Local Business Local Prestige Facebook Pages A priority for prestige brands year-over-year has been (May 2012) localizing Facebook content, and 41 percent now maintain at least one local country page (in addition to the U.S. or global page), while 40 percent of brands have experimented with geotargeted Facebook wall posts. Throughout May, Japan local country pages grew on average 11.5 percent versus global Facebook page growth of 5.3 percent. These local pages also boast higher levels of engagement, registering interaction rates of 0.19%, versus 0.13% for global pages. Beauty brands are at the forefront of the local charge, Taiwan pioneered by L’Occitane en Provence (54 local pages), Israel Lancôme (45), and Clinique (32). France has 20 local pages, Japan and Spain 16. On average, the largest local ENGAGEMENT prestige communities are in Brazil (93,000 fans) and the South Korea UK (85,000) and the most engaged are Japan, Taiwan, Hong Kong and Sweden. br a nds using G E O -TA R G E T E D P O S T S vs . br a nds with LO C A L PA G E S France Beauty & Skincare Fashion Specialty Retail Watches & Jewelry Spain 53% 40% 26% 41% U.S. Geo-Targeted Posts Brazil United Kingdom Local Pages pa ge size 79% 34% 37% 26%© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 18
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings T H E FA C E B O O K U N I V E R S E Total “Likes” - All Brand Pages GLOBAL PAGES REGIONAL PAGES Burberry (May 2012) 12,894,105 Lacoste n=1 10,566,973 Gucci Christian Dior Louis Vuitton n=9 8,067,757 8,043,861 7,727,684 n=3 n=1 n=1 Chanel Macy’s 6,690,952 Dolce & Gabbana Ralph Lauren n=1 5,827,208 5,443,856 Sephora n=6 4,979,783 n=4 n=1 4,358,280 n=16 Calvin Klein 4,176,722 Coach M·A·C Tommy Hilfiger Armani n=1 3,463,050 3,423,157 3,352,823 3,177,441 n=3 n=1 n=2 n=1 Swarovski Lancôme Clinique 2,976,933 Hugo Boss United Colors 2,694,998 2,688,832 n=5 n=45 n=32 2,280,810 of Benetton n=2 2,263,180 n=6© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 19
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings FA C E B O O K A R O U N D T H E W O R L D Average “Likes”, Growth, and Engagement Per Country Page* (May 2012) 35 31 32 28 27 3 17 29 7 34 14 4 33 26 10 19 5 1 21 18 15 30 23 6 24 16 8 11 12 22 9 25 20 2 13 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 U.S. Brazil UK France Spain Middle East Germany India Malaysia Italy Hong Kong Thailand Australia Canada South Korea Taiwan Poland Turkey Avg. # “Likes” 307,337 93,060 84,960 66,016 65,472 41,425 38,067 36,959 36,574 30,585 27,693 27,649 25,556 25,010 24,277 23,846 21,263 21,622Avg. Interaction Rate 0.07 0.05 0.04 0.10 0.08 0.12 0.11 0.05 0.09 0.08 0.15 0.15 0.12 0.05 0.19 0.31 0.10 0.13 Growth (%) 2.45 24.50 4.70 7.55 17.02 5.59 10.82 0.59 8.19 5.14 21.42 5.49 9.81 2.07 9.99 5.08 8.33 23.98 Pages 11 6 15 20 16 8 11 5 12 14 13 11 8 7 14 15 8 11 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Portugal Singapore Greece Philippines Israel Mexico South Africa Hungary Netherlands Russia Belgium Japan Sweden Denmark Switzerland Czech Republic Norway Avg. # “Likes” 21,175 15,361 18,479 18,178 16,408 11,786 10,365 9,319 9,088 7,473 6,709 6,290 5,217 4,946 3,516 2,469 1,643Avg. Interaction Rate 0.11 0.08 0.16 0.07 0.26 0.18 0.19 0.29 0.18 0.22 0.11 0.57 0.32 0.15 0.19 0.25 0.14 Growth (%) 6.55 5.70 4.17 8.54 5.23 29.27 6.71 25.11 5.40 2.24 7.12 32.84 2.46 1.82 8.54 30.35 21.81 Pages 12 13 6 6 6 8 5 5 8 8 8 18 4 5 8 7 3 * Growth & Engagement based on pages with more than 2,000 “likes”© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 20
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings F - C O M M E R C E S O P H I S T I C AT I O N % of Brands Employing the Following Tools on Facebook F-Commerce/F-Disappointment (May 2012) The number of prestige brands selling directly through Facebook declined year-over-year, mimicking the larger retail sector. Initial forays into F-commerce mimicked the 2% Social Shopping e-commerce experience, and many brands have shuttered their Facebook storefronts after struggling to recognize return on investment. Only four brands in the study feature F-Commerce Sophistication 4% Full F-Commerce full F-commerce with end-to-end product selection and checkout on the platform. L’Occitane and Philosophy allow users to shop their entire SKU range. Sephora provides users with the opportunity to send friends gift cards via 2% F-Commerce, No Checkout the platform, and Oscar de la Renta invites its more than 300,000 fans to shop Facebook exclusives including the Bauble Book. Two additional brands, Tory Burch and DVF, provide partial F-Commerce capabilities, with checkout occurring on their e-commerce sites. While F-commerce has not lived up to the hype, efforts on the site to incorporate the Facebook graph demonstrate a 72% Product Links strong alternative to traditional Facebook sales. Only two brands in the study, M.A.C and Smashbox, allow users to “shop with their Facebook friends” through their e-commerce site. Consumers can share their favorite products and recent purchases, see what is “liked” by their Facebook network and receive birthday gift reminders and suggestions. “ It’s crucial for prestige brands to think about social commerce holistically, rather than just F-commerce 19% No F-Commerce as a silo. The right questions to ask are, ‘How are we making the entire shopping experience social?’ and ‘How do we incentivize people to share their experiences?’ versus just, ‘How can we set up a storefront on Facebook?’ ” – Michael Lazerow | CEO, Buddy Media© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 21
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings G R E AT E S T Y E A R - O V E R -Y E A R G A I N O R LO S S 2011 vs. 2012 Facebook IQ Percentile Rank Bulgari Diane von Furstenberg Challenged  Gifted -64% Gifted  Challenged Jewelry icon added 600,000 new fans, registered 30,000 Early F-commerce pioneer maintains a strong page, but IQ monthly users of its Philanthropy app, and has increased 63% suffers from limited year-over-year innovation and growth. fan engagement. Prada Clarins Feeble  Average -48% Gifted  Average The notorious Facebook holdout joined the platform in Fan and brand posting have decreased significantly; Spa January 2012; quickly playing catch-up. 55% Life game isn’t enough to keep brand among Gifted ranks. Christian Dior NARS Challenged  Gifted -37% Gifted  Average 53% Catapulted from 900,000 fans to over 8 million. Content has 300 percent growth has come at the expense gone from lackluster to best-in-class. of engagement. Cartier Philosophy Challenged  Gifted -37% Average  Challenged 51% Deftly integrated “L’Odysée de Cartier” campaign debuted Brand site features Facebook fan favorites but fails to link across social media channels fueling 50 percent Facebook Facebook page or allow products and content to be shared. fan growth in 30 days. Smashbox Omega Average  Gifted -36% Gifted  Average Site-side Facebook shop keeps pace with innovation. Limited unique tab programming has allowed others 43% to catch early category leader.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 22
  • “Likes” Per Day TA 0 1,000 2,000 3,000 6,000 9,000 12,000 15,000 G Sm He as uer hb 2007 ox Pa nd Di Or o ra an igi eV ns on INDEX ® Os Fu Kie Cl ini© L 2 2012 L 2 ThinkTank.com ca rst hl’ qu Ra r d en s e l ber e lp h a g M La 2008 Ka Re ·A ur te nta ·C en To Spa ry de Skincare B Beauty & L’O urc cc h Fast Follower(s) ita ne Ba rn No Facebook IQ ey rd s C La str Ba Ne hlo nc om re w e Se Key Findings ôm p Specialty Retail E Yo e ho Ha scen rk r a rv Gi Reproductions Prohibited ey tuals or Ni gio c Ar Ph hols m an Fashion Ne ilo i so im ph Co a y ac Pe n M h rri arc co u La ne s co Watches Lo MD ste & Jewelry Be Some of the prestige industry’s early Facebook ng on the platform. Of the 100 brands in the Index, rg in d Gu Sa or f Hu es Ca Do cc ks Go bl lvi lce i Fif od ot n & Kl Pandora was the first to join Facebook, in November Eli th A ma ein Ga z v n bb adopters are closing in on their five-year anniversaries Au abet enu an de h A e a m rd ar 2009 s P en ig NE T- Ha De uet A- Ga rr Be ler y W er P OR ies in s TE La sto R Em fay n Be en Sel ette ne eg fri fit ild dg C os Va Dav o Z es n id en NA m Tif fan eti Cl Y ga ee ur RS c s y f m Bo & A an Bl bb rpe oo i B ls m r M Ra ing own ar Do ym da k nn on le’s DK s & M aK d NY Sp en ac y’s ar O We an m il c er Ne eg w a El Yo Co S rk r te K- “ L I K E S ” P E R D AY Ing II le Av s Sh eda E ise La sté Va i ud e Sw C do er ar and the size of the community it has built. Cl che Pr larin ov Lo av ro in s M sk in n C tem ich i uis Bu Kl o p ae Vu rb ein ns s it to er Un tan Jim l Ko n ry de tin rw Bu lga m rs yC M ear ri ho To o m m 2007. Digital holdout Prada was the latest to launch M ova relationship between when a brand joined Facebook on do Average Accumulated “Likes” Since Facebook Page Launch yH tb an official page in January 2012. However, there is no lan Un ilfi ge Bo c ite d r ot Yv Co s es lor Sa Hu so Va int go fB len La Bo en Ho tin ur us o en ss ett e o Ba Ve t on rs f F lly a ce ra se P r Ja H iage g t Ba er-L arro um eC ds e e ou t M ltre nonofficial pages. er cie Le r Ch B on Bo an el tte M g Fe 2010 ar aV nd ch i e R Ba enet ive cc a He Ch Ga arat rm ris es tia M uch n ax e Di or M M ar a IW ar C Ca c Ja Sa r ti co lva Ch er bs to op re ar Fe d Of rr Al fic ag ex an ine am d er Pa o M ne Patek Philippe and Rolex have yet to embrace ra cQ Pr i ue a da e n with the thousands of fans who are engaging with 2011–2012 Facebook, missing the opportunity to communicate23 Want to know more about your brand’s ranking? Contact us
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings R E S P O N S E F R E Q U E N C Y BY C AT E G O R Y Average % of Posts to Which Brand Responds (May 2012) Slightly More Social Nearly 80 percent of prestige brands maintain a two-way Andrea This eyeshadow is amazing! = Beauty & Skincare dialogue with their fans, responding to 20 percent Does it come in Purple? = Fashion of fan questions. = Specialty Retail 30% More than one third of brands in the index prevent fans = Watches & Jewelry from posting on their Facebook Timelines, essentially inhibiting the “social” component of the network. Treating Sarah Which brand would you suggest for wedding attire? Facebook as a broadcast channel, these brands are missing the opportunity for fan-created content and the 23% establishment of an organic community that foments when fans interact with one another. Joseph Does this style come with Although fan posts are down 0.05% year over year, the a 14k gold band? 73 percent of brands that allow fans to initiate interaction are rewarded with an average of 677 fan uploaded 21% photos and 63 fan posts per week. While Specialty Retail brands demonstrated the lowest Daniella Looking forward to seeing the new collection—so chic! interaction on brand posts, they lead all categories in fan-to-fan engagement. However, Pandora fans are, 6% by far, the most active posters. T O P- 1 0 W E E K LY FA N P O S T S (April 2012) 98 Michael Kors 107 128 208 297 1,040 213 276 93 120 Nordstrom Marks & Spencer Boots Macy’s Benefit Cosmetics Bare Escentuals M∙A∙C Sephora Pandora© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 24
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings A V E R A G E I N T E R A C T I O N BY P O S T S P E R W E E K Less is More (April–May 2012) There is a negative correlation between the number of brand posts and interaction rate, suggesting that posting too frequently can reduce engagement. Specialty Retail brands averaged 16 posts per week and had the lowest engagement, 0.04%. The sweet 0.15% spot appears to reside between 4–7 posts a week. 0.13% 0.12% inter a ction r ate 0.09% 0.08% 0.06% 0.06% 0.03% 0.03% 0.00% 1– 4 4–7 7–10 10+ P osts per week© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 25
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings Timeline’s New Features Facebook Timeline offers new posting options that help brands bring attention to specific content. Highlighted A V E R A G E I N T E R A C T I O N BY P O S T C AT E G O R Y or “starred” posts, which span the entire Timeline, (April–May 2012) achieve the highest engagement at 0.12 percent. Across the study, 27 percent of the brands experimented with new “pinned” post functionality that allows a brand 0.12% to highlight a post at the top of the Timeline for seven days. These posts averaged 0.10 percent interaction, 0.10% slightly outpacing the average. 0.09% Highlighted Post Pinned Post Regular Post© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 26
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® a ver a ge inter a ction r ate by post content Key Findings (April–May 2012) 0.092% 0.089% 0.086% E-commerce Strikes Back An examination of more than 950 posts reveals that 0.061% those that contained links to e-commerce web pages received the highest rates of interaction, closely followed 0.051% 0.050% by celebrity and offline event-inspired content. These three were also the most shared, suggesting fans are more 0.026% selfish with deals and offers. Like the findings from the 2011 Digital IQ Index®: Specialty Retail, posts that promote contests and discounts received lower rates of engagement, indicating their inability to generate consistent interaction or stickiness. Link to Celebrity Offline Event Retail Location Contest/Sweeps Product Discount/Offer E-Commerce most sh a re D content Average Shares per Post (April–May 2012) 0.015% 0.013% 0.010% 0.010% 0.010% 0.009% 0.003% Link to Offline Event Celebrity Product Retail Location Contest/Sweeps Discount/Offer E-commerce© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 27
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® Key Findings E X T E R N A L I N T E G R AT I O N Integration % of Brands Employing the Following Facebook integration has increased dramatically year (2011 vs. 2012) over year. However, brands are missing earned media 2011 2012 opportunities and are leaving customer data on the table. In the CMO Council’s fourth quarter 2011 survey, only 17 percent of marketer respondents reported that they thought their company had a fully integrated social media strategy, while an additional 34 percent said social media was supportive of communications “but not fully 63% 24% 46% integrated.”1 83% 63% 69% Although 83 percent of brands maintain a link to their Facebook page on their website, 31% percent of brands do not offer shareable content, and 45 percent have yet Site Facebook Link Site Content Sharable Search Engine Visibility to incorporate the “Like” button on product and content on Facebook pages. Surprisingly, 97 percent of prestige brands are not utilizing the Facebook Connect API, a missed opportunity to capture valuable customer data with a single click. 35% 0% 55% 3% “ An advanced Facebook strategy is not just about Facebook.com, but instead about how brands can bring the power of the social graph to all of their online Site Content “Like” API Facebook Connect API outposts. With the ability to track conversions and sales from social sharing across their web properties, prestige brands that do not fully integrate Facebook are literally leaving money on the table. ” – Michael Lazerow | CEO, Buddy Media 1. “Social Media in the Marketing Mix,” eMarketer, 2012.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 28
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS Live coverage of launch parties and video campaigns are accessible via the Live@ Macys tab. The interactive feature houses check-in capabilities and conversation streams of viewers Find Us. Like Us. Live stream of Facebook activity and ability to “like” the Macy’s page directly from the blog, while users share comments and blog posts with their Facebook communities© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 29
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® flash of genius Engagement Macy’s uses crowdsourcing for Social Media ideas and allows Integrated into Facebook fans to be part of the decision-making process in contests and campaigns Cross-platform integration of Twitter and Pinterest positions Macy’s Facebook page as the brand’s prime social destination “We like you, too.” Thank-you video to Macy’s 5 million+ fans encourages them to keep the conversation alive with the message: “Our page is your page.”© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 30
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS The Pretty Powerful campaign was rolled out in 16 countries, and the app was translated to reach local fans bobbi brown prett y powerful a pp penetr ation a nd pa ge growth (April–May 2012) 40% 36% 100% a pp penetr ation 30% 27% 80% 25% Pa ge growth 24% 21% 22% 20% 60% 18% 20% 13% 12% 12% 40% 8% 9% 10% 11% 10% 5% 20% 0% 0% ey e t ry ia in l y nd nd ds utc m a a ren m k ae s ar nc an ric tri ss a Ea (D lgiu (F elgiu a rk lan la rla Isr Sp h) ) nm s ng m Fra Af ch Ru Po Tu Au le tze er Be r Hu De Ge h idd B th ut i Sw Ne So MGlobal CitizenIn February 2012, Bobbi Brown invited nearly 200,000 photos and personal secrets for self-confidence for the Local pages participating in the contest grew by anFacebook fans across the globe to become the next face chance to win a trip to New York to meet Bobbi. The average of 31 percent during the last three weeks of theof Bobbi’s “Pretty Powerful” campaign. The brand rolled entrant receiving the most votes on each local page submission period, significantly exceeding the 9 percentout its contest to 16 of its 28 local pages by introducing proceeded to the international round. During the final stage growth clocked by Bobbi Brown pages that did notlike-gated applications in each country’s native language. of voting, every face represented a country, highlighting participate.Fans were encouraged to submit before-and-after beauty the local flavor of the cross-market campaign.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 31
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS The brand collects valuable customer data by allowing users to connect to their e-commerce accounts with the Facebook Connect open graph Last August’s campaign distributed more than 245,000 product samples within one week and 352,248 new fans were added in five days 2. http://www.vogue.co.uk/ news/2011/08/31/rosie- huntington-whiteley-burberry- behind-the-scenesScale + DataBurberry continues its reign as luxury’s Facebook leader first week of the global campaign, attracting 352,248 new with one click. Demonstrating the power of an iterativein terms of size and scale. The digital darling has grown its Facebook fans in the first five days. digital strategy, Burberry first experimented with Facebookcommunity 107 percent since May 2011, adding 6.6 million Connect in October 2011, taking down the plug-in after two However, the brand stands out for more than strength andfans. Much of this growth has come on the back of massive weeks. As of May the plug-in appears to be here to stay. size. Burberry is one of only three brands in the Index thatprogramming, including an August 2011 fragrance sampling employ Facebook Connect functionality on their sites, Burberry’s Facebook investments seems to be payingcampaign that broke all records. Burberry distributed allowing the brand to collect valuable CRM data during dividends. In September 2011, Comscore reported 29245,0002 Burberry Body samples to its Facebook fans in the account sign-up and allowing users to populate their data percent of traffic to the Burberry site came from Facebook.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 32
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS L’Occitane shares knowledge across its organization and tailors content to its global community in more than 50 countries L’Occitane France added 5,024 new fans on the day the campaign launched on its page L’Occitane Portugal’s Mother’s Day Facebook tabMother’s DayWith 54 distinct country-dedicated Facebook pages, L’Occitane’s local pages offer Mother’s Day discounts, Love Test, a like-gated app offered on 12 local pages andL’Occitane is faced with the challenge of tailoring its samples, and prizes through targeted interactive features, reaching 120,000 active users in the month of May. Thosecontent for a wide variety of languages and cultures. A from user-submitted photo competitions in the U.K. and who “test your love for your mother” are rewarded: a freesalient example is Mother’s Day, celebrated internationally Hong Kong, to a story competition in the Middle East, gift for the test-taker as well as opportunities to pamperbut at varying times throughout the year. L’Occitane’s and a question-and-answer challenge in Turkey, which mom through discounts or sweepstakes. At its conclusion,Facebook pages span countries that honor mothers on 15 added 1,310 new fans to the existing base of 7,370 in just the test-taker is prompted to invite Facebook friendsdifferent calendar days, from February to December. one day. Particularly successful was The Mother’s Day to participate.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 33
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS Dispersion Coach Japan Facebook Wall Almost half the brands in the Index register as “Feeble”— Coach Japan Custom Tab: demonstrating widespread underinvestment in mobile by Best-Seller Ranking a considerable portion of the prestige sector. The disparity between the Index leader (164 IQ points) and the Index laggard (8 IQ points) suggests that this “mobile gap” is more the result of nonparticipation than subpar perfor- mance. With a median score of only 76, the majority of brands are just beginning to make mobile investments, while a select few early investors are pulling away from the 35,000 T O P- 1 0 J A PA N D E D I C AT E D FA C E B O O K PA G E S pack. 31,475 Total “Likes” 30,000 (May 2012) 25,000 20,000 16,805 16,387 14,900 27% increase in Coach’s fan base over 3-week Mother’s Day campaign 15,000 11,297 10,000 7,504 5,000 3,720 3,242 1,334 1,298 0 Coach Lancôme Clinique Estée Lauder Tommy Kate Spade Bobbi Brown Origins Barneys Alexander Hilfiger New York McQueenKonnichiwaIn February 2012, Facebook’s Japanese user base surpassed With more than 30,000 “likes,” the Coach Japan page tops Japan’s strong community produces an interaction ratethat of domestic social media rival Mixi. Acknowledging this the list. Coach Japan’s unique content and programming nearly six times higher than that of the Coach global account,powerful opportunity, 18 percent of prestige brands have indicate a greater level of investment than a basic translation mirroring the general trend in which Japan-focused pagescreated country-specific Facebook pages for the world’s of posts on the global page. A recent Japan-specific Mother’s produced the highest growth and engagement rates acrossthird-largest luxury market. For half of these brands, Japan is Day contest added nearly 7,000 new fans to the page, which all countries.the only country for which they maintain a local account. grew by 27 percent during the three-week campaign. Coach© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 34
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS Dispersion Almost half the brands in the Index register as “Feeble”— demonstrating widespread underinvestment in mobile by a considerable portion of the prestige sector. The disparity between the Index leader (164 IQ points) and the Index laggard (8 IQ points) suggests that this “mobile gap” is more the result of nonparticipation than subpar perfor- mance. With a median score of only 76, the majority of brands are just beginning to make mobile investments, while a select few early investors are pulling away from the pack. Users can purchase winning shades via a “M.A.C by Request” Bobbi Brown fans voted Facebook link allows fans to choose to create a limited edition which of their favorite “Brings Back” Facebook products they would like lipstick collection reissuedBring it BackBobbi Brown and M.A.C Cosmetics, both of the Estée different shades of lipstick on the “Bobbi Brings Back” percent higher than the average rate for Beauty brands.Lauder group, are leveraging their Facebook communities app. Users can select different colors and share their M.A.C Cosmetics’ “M.A.C by Request” has also generatedto reinstate fan-favorite products. By asking brand choices in hopes of creating a limited edition “Brings Facebook buzz with more than 636,000 votes cast onenthusiasts to vote on their must-bring-back cosmetics, Back” Collection that can only be purchased online via a potential reissue products.4 Winning shades of lipstick, lipthese brands capitalize on the opportunity to directly link from Facebook. The program has been so successful gloss, and eye shadow will be available in August 2012interact with their fans in a way that retailers, with no that there are plans to hold another Brings Back campaign only from the brand’s website.control over SKUs, cannot. for eye shadow in February 2013.3 The interaction rate of 3. “Social Media Breathes Life Into Shelved Products,” Tatiana Boncompagni, The New York the 13 brand posts about the campaign was more than 80Bobbi Brown herself encourages fans to vote on ten Times, May, 2012. 4. Ibid.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 35
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS More than 247,000 Facebook users claimed the Kate Spade Offer Macy’s Offer was claimed by more than 41,000 Facebook users The Offer is sent by email to user Users can like, comment, and share the Offer with their friends 5. “Sharp revenue increase for Groupon gives stock a boost,” Wailing Wong, Chicago Tribune, May 15, 2012 6. “Facebook Now Testing Offer ‘Coupons’ for Ecommerce Sites, Too!,” Corey Eridon, hubspot.com, May 9, 2012Facebook OffersGroupon’s recently reported $1.35 billion in gross billings5 product, debuted its Facebook Offer in late February with New York outlet shops. Despite a fan base of only 520,000,must have captured Facebook’s attention because it a 25 percent discount on purchases over $100. During a more than 247,000 Offers were claimed and the Facebookrecently introduced a new advertising product, Facebook two-day period 41,597 Offers were claimed, resulting in an 6 page metric “People Talking About This” increased moreOffers, allowing brands to circulate coupons that are extremely high interaction rate of 0.90 percent, which is 44 than tenfold after the Offer was released.redeemable both online and offline. After claiming the times higher than the brand’s average rate and double that Although 29 percent of brands the in the Index haveOffer, the activity shows up on the user’s newsfeed, of the leader in the Prestige 100. experimented with various forms of Facebook advertising,enabling fans to share the Offer with their friends. Kate Spade has also pioneered a Facebook Offer, with only Macy’s and Kate Spade have leveraged thisMacy’s, the first in the Index to experiment with the new a 40 percent discount on all handbags and wallets in its new product.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 36
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS Users can submit “wishes” and browse the Brand highlights popular gallery of submissions compliments in a Facebook post with a link to the app FA C E B O O K “ L I K E S ” P E R D AY (November 1, 2011–January 31, 2012) Added 1,423 1,400 new fans 1,200 1,000 800 68.8% 26,293 growth new fans 600 400 79,561 “Miracle Maker” Current Total 200 app launched 0 NOVEMBER 2011 DECEMBER 2011 JANUARY 2012Miracle MakerWith the highest fan engagement score in the index, SK- like-gated “Miracle Maker” app on its Malaysia page. Fans eventually capturing more than 1,000 wishes. Furthermore,II’s efforts to cultivate tight-knit communities in Asia have posted and shared their “Wishes” with others in a voting the brand saw a 68.8 percent increase in total page “likes”,reaped rewards. contest to win products and cash. The response to the adding 29,263 new fans in the two-month period during the app was overwhelmingly positive, and the brand continued app’s release.Just in time for the holiday season, the brand launched its to generate buzz by promoting the contest on its wall,© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 37
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® FLASH OF GENIUS The “Pilot Aptitude Test” gaming app was launched in conjunction with IWC’s “Big Pilot” watch collection FA C E B O O K “ L I K E S ” P E R D AY (January 1, 2012–March 31, 2012) 8000 7000 7,130 “Pilot Aptitude Test” new fans added app launched 6000 Fa cebook “ likes ” 5000 4000 5,166 new fans added 3000 2000 1000 0 JANUARY 2012 FEBRUARY 2012Pilot Aptitude TestOnline social games have proven to be a significant Launched in conjunction with its “Big Pilot” watch The app garnered a 19.5 percent “like” increase and theengagement opportunity. The top-ten Facebook collection, the app allows users to think and act like a pilot addition of 45,861 new fans in the ten-day period followingdevelopers’ gaming apps reach more than 660 million by playing a memory and spatial reasoning game. Users the game’s release, a rate ten times the average for themonthly active users.7 IWC taps into the social gaming can share scores with friends, as well as view top scores Watches & Jewelry category.phenomena with its Facebook app “Pilot Aptitude Test.” on an updated leaderboard. 7. “AppData,” appdata.com, May 2012© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 38
  • Facebook IQ Want to know more about your brand’s ranking? Contact us INDEX ® TEAM SCOTT GALLOWAY MICHAEL LAZEROW Jessica Braga Clinical Professor of Marketing, NYU Stern, Founder, L2 CEO, Buddy Media L2 Scott is a Clinical Professor at the NYU Stern School of Business, Michael is a serial entrepreneur who has co-founded four Jessica is an art director, specializing in identity, iconography, where he teaches brand strategy and digital marketing, and is successful internet-based media companies. He has a passion event graphics, and invitations. She began her career in the founder of L2, a think tank for digital innovation. Scott is also for creating, managing and growing companies from the ground fashion, designing textiles and prints at Elie Tahari’s studio, and the founder of Firebrand Partners, an operational activist firm up. Michael is currently Chairman and CEO of Buddy Media, then focused on the brand aesthetic across its many developing that has invested more than $1 billion in U.S. consumer and me- Inc., a New York-based company whose social enterprise disciplines. Desiring to explore other facets of design, she went dia companies. In 1997, he founded Red Envelope, an Internet- software is used by eight out of the top ten global advertisers. on to become the art director of a small, prestigious design firm based branded consumer gift retailer. In 1992, Scott founded in Chelsea, where she focused on event graphics, digital and Michael is widely recognized as a thought leader on digital media Prophet, a brand strategy consultancy that employs more than print collateral, and brand aesthetics for companies both large and marketing trends and is a contributing writer to Advertising 250 professionals in the United States, Europe, and Asia. Scott and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. Age, AllThingsD, MediaPost, Business Insider, and Fortune, among was elected to the World Economic Forum’s Global Leaders of in Illustration from Rochester Institute of Technology. other publications. He regularly speaks at conferences including Tomorrow, which recognizes 100 individuals under the age of 40 the Monaco Media Forum, the Consumer Electronics Show, South Aaron Bunge “whose accomplishments have had impact on a global level.” by Southwest Interactive (SXSWi), Bloomberg Empowered Entre- L2 Scott has served on the boards of directors of Eddie Bauer (Nasdaq: preneur Summit, Mashable Connect, MediaPost OMMA Global, Aaron is a graphic designer who specializes in print design, EBHI), The New York Times Company (NYSE: NYT), Gateway Com- Web 2.0 Expo, and iMedia Brand Summit. branding and identity, packaging, and web design. His approach puter, and UC Berkeley’s Haas School of Business. He received a Michael and his companies have won numerous industry awards is both aesthetic and functional, characterized by clear, intelligent B.A. from UCLA and an M.B.A. from UC Berkeley. and accolades. In June 2011, Michael was named the New York design appropriate to the project at hand. He began his career region Ernst and Young Entrepreneur of the Year. Buddy Media tailoring projects for the Chinese, Australian, and U.S. markets Maureen Mullen was named to Advertising Age’s 2011 “Digital A-list”, Ad Week’s across multiple design disciplines and in multiple languages. Director of Research & Advisory, L2 2010 “Insurgent of the Year” and won the “Best Enterprise” ap- Aaron has a B.F.A. in Graphic Design from Iowa State University. Maureen leads L2’s research and advisory practice, where she plication honor at the 2011 TechCrunch Crunchie Awards. helped develop the Digital IQ Index®. She has benchmarked STASHA ROSEN the digital marketing, e-commerce, and social media efforts of R. Danielle Bailey L2 more than 300 brands across pharma, auto, luxury, specialty retail, L2 Stasha has experience developing a variety of marketing beauty, and the public sector. Maureen also has led digital strategy Danielle began her career at The Home Depot, Inc., where she led initiatives, including those in the Public Programs Department at consulting engagements for a variety of Fortune 1000 clients. a variety of internal consulting engagements focused on supply the American Museum of Natural History. She recently received a Before joining L2, Maureen was with Triage Consulting Group and chain, merchandising, and in-store process improvement. She B.A. in Molecular, Cellular, and Developmental Biology from Yale led managed-care payment review and payment benchmarking went on to manage the implementation of award-winning mobile University. While an undergraduate, she performed research on projects for hospitals, including UCLA Medical Center, UCSF, initiatives for several large media clients, including The New York bacterial RNA degradation and completed her senior thesis on and HCA. Maureen has a B.A. in Human Biology from Stanford Times Company, NBCUniversal, Disney/ABC, Maxim magazine, imaging technologies in microbiology. University and an M.B.A. from NYU Stern. and Zagat. At L2 she has benchmarked the digital competence of brands spanning the specialty retail, public sector, pharma, wine JING YANG DANIELLA CAPLAN L2 and spirits, travel, and financial services industries. Danielle has a L2 Jing, a statistics major, has experience in data analysis and B.S. in Systems Engineering from the University of Virginia and an Daniella started her career as a marketing communications M.B.A. from NYU Stern. extensive quantitative research. Her approach in advanced manager for a global defense contractor where she directed statistical techniques is ranging from Multivariate Analysis to the company’s creative programs and the rebranding of newly MACKENZIE LEE Bayesian Network Analysis, applied to several fields including acquired divisions. She was later hired to lead public relations L2 marketing research. Jing received a B.S. in Statistics from Central for the Israeli Consulate in Boston and guided the local Mackenzie began his career as an investment analyst with South University (China), and an M.A. from Columbia University. implementation of the country’s nation-branding efforts while Bivium Capital, an investment management firm that provides spearheading the consulate’s social media integration. Daniella emerging manager-of-managers solutions to sophisticated in- received a B.A. in Politics with International Studies from Warwick stitutional investors. At Bivium, Mackenzie led dedicated money University (UK) and an M.S. manager searches and performed intensive due diligence on a in Integrated Marketing from NYU. multitude of investment managers in a range of asset classes. Mackenzie received a B.A. in Public Policy and an M.S. in Management Science and Engineering from Stanford University.© L 2 2012 L 2 ThinkTank.com Reproductions Prohibited 39
  • UPCOMING EVENTS   L2 Clinic  Facebook, In-Depth  06.14.12 New York City  L2 Lunch  FragranceL2 is a think tank for digital innovation.  06.21.12 New York CityWe are a membership organization that brings together thought leadershipfrom academia and industry to drive digital marketing innovation.  L2 Lunch  L2 Collective Release  06.27.12 New York CityResearch  L2 Lunch  FragranceDigital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score  06.29.12 Parisbrands against peers on more than 350 quantitative and qualitative data points, diagnosing theirdigital strengths and weaknesses.   L2 Lunch  GamificationEVE N TS  07.19.12 New York CityForums: Big-picture thinking and game-changing innovations meet education and entertainment.The largest gatherings of prestige executives in North America.300+ attendeesClinics: Executive education in a classroom setting with a balance of theory, tactics, UPCOMING Researchand case studies.120 –180 attendees Digital IQ Index® Reports: Prestige 100® Reports: Fragrance China IQWorking Lunches: Members-only lunches led by digital thought leaders and academics. Magazines Mobile IQTopic immersion in a relaxed environment that encourages open discussion. Specialty Retail40 – 80 attendeesconsulting upcoming member benEfitsAdvisory Services: L2 works with brands to garner greater return on investment in digital initiatives.Advisory work includes Digital Roadmaps, Social Media Strategy, and Site Optimization engagements. L2 Collective: The L2 Collective is an initiative in response to members’ desireME M B E RS H IP to have more insight into the digital approach of peer brands.For membership info and inquiries: membership@L2ThinkTank.com
  • A Think Tank for DIGITAL INNOVATION51 East 12th Street, 2nd FloorNew York, NY 10003 © L 2 2012 L 2 ThinkTank.com Reproductions ProhibitedL2ThinkTank.com This report is the property of L2 Think Tank. As always, L2 Members may use this report for internal business purposes. Beyond the L2info@L2ThinkTank.com Membership, no copyrighted materials by L2 Think Tank may be reproduced, re-distributed or transferred without prior consent by L2.