The 8 Success Criteria For Facebook Page Marketing

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! The 8 Success Criteria For ! ! ! Facebook Page Marketing ! ! ! Analysis reveals brands lack maturity by ! ! ! not leveraging social features.! ! ! ! ! July 27, 2010 ! ! ! ! ! ! ! ! ! By Jeremiah Owyang with Christine Tran and Alan Webber Includes input from 34 ecosystem contributors

Table of Contents Open Research .............................................................................................................. 3 Disclosure....................................................................................................................... 3 Ecosystem Input ............................................................................................................ 3 Vendors and Agencies.................................................................................................................. 3 Individual Contributors.................................................................................................................. 3 Executive Summary ....................................................................................................... 4 Facebook: A Platform Marketers Cannot Ignore........................................................ 4 Brands Must Follow the 8 Success Criteria for Facebook Page Marketing ............ 5 Set Community Expectations ....................................................................................................... 6 Provide Cohesive Branding .......................................................................................................... 6 Be Up To Date .............................................................................................................................. 6 Live Authenticity ........................................................................................................................... 7 Participate in Dialog...................................................................................................................... 7 Enable Peer-To-Peer Interactions ................................................................................................ 7 Foster Advocacy ........................................................................................................................... 8 Solicit A Call To Action ................................................................................................................. 8 Brands Fail to Reach Maturity by Not Leveraging Social Features .......................... 8 Recommendations....................................................................................................... 22 Appendix....................................................................................................................... 23 Methodology and Scope ............................................................................................................ 23 Get the Quantitative Scorecard: Altimeter Group Advisory Services ......................................... 23 Endnotes....................................................................................................................... 24 About Us ....................................................................................................................... 26 About Jeremiah Owyang, Partner............................................................................................... 26 About Christine Tran, Researcher............................................................................................... 26 About Alan Webber, Partner ....................................................................................................... 26

Open Research This independent research was 100% funded by Altimeter Group. This report is published under the notion of Open Research – we want it to spread at no cost with attribution. The Creative Commons License is Attribution-Noncommercial-Share Alike 3.0 United States. It is intended for you read, share, and utilize. Disclosure Your trust is important to us. As such, we are open and transparent about our financial relationships. With their permission, we publish a list of our client base on our website. At the time of this report’s publication, some of the technology providers we interviewed are Altimeter Group clients. See our website to learn more: http://www.altimetergroup.com/disclosure. Ecosystem Input This report could not have been produced without the generous input from some of the leading market influencers and solution vendors who have a vested interest in seeing success in Facebook page marketing. Input into this document does not represent a complete endorsement of the report by the vendors or individuals listed below. Vendors and Agencies Altimeter Group gleaned input from the following vendors, agencies, and expert providers of Facebook page marketing solutions: 360i, AKQA, Awareness, The Community Roundtable, Context Optional, Digital Evolution Group, Edelman Digital, Facebook, Gigya, Horn Group, Inside Facebook, Janrain, KickApps, Lithium, LiveWorld, Ogilvy’s 360° Digital Influence, Razorfish, RockYou, SHIFT Communications, Spredfast, StepChange Group, a Powered Company, Vitrue and Wildfire Interactive. Individual Contributors Altimeter Group received feedback, direction, or information from the following industry experts and contributors: David Armano, David Berkowitz, Bert DuMars, Charlene Li, Dave McClure, Annie Noll, Shiv Singh, Adam Smith, Justin Smith, Jason Sullivan, and Anita Wong. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 3 ! !

Executive Summary Brands are jumping on the Facebook bandwagon to reach customers. The Society of Digital Agencies reports that more than 45% of senior marketers worldwide named social networks and applications their top priority for 2010.1 Yet despite the urgency, most brands lack a strategy. Altimeter Group conducted research, and gleaned input from 34 vendors, agencies, and experts, to determine success criteria and develop a roadmap for Facebook page best practices. We found Eight Success Criteria for Facebook page marketing, and then tested the maturity of 30 top brands across six industries. Our heuristic evaluation revealed that brands fell short – half of the brands we reviewed (14 out of 30) did not fully leverage social features to activate word of mouth, the hallmark behavior of social networks. Within this immature landscape, a few brands were on the right track to successfully harnessing Facebook page marketing. Brands like Pampers, Macy’s, Kohl’s, and AXE increased engagement and activated word of mouth through advocacy and peer-to-peer interactions, or solicited business call to actions that result in transactions. Brands need to stop experimenting in Facebook on their own customers. The criteria and findings in this report provide brands with a roadmap towards Facebook page marketing success. Facebook: A Platform Marketers Cannot Ignore Consumers are adopting Facebook at staggering levels. Facebook touts a staggering 500 million users worldwide.2 Engagement is ripe, with 50% of active users logging on in any given day, connecting to an average of 130 friends.3 Average internet users are spending more time on Facebook per day than on Google, Yahoo, YouTube, Microsoft, Wikipedia and Amazon combined.4 The attention of consumers has shifted – marketers must take action. Consumers lean on each other to make decisions – bypassing brands. Consumers trust their friends and family more than other sources of information about products and services, according to a Nielsen study.5 Another study reports that 60% of Facebook users are more likely to recommend a brand after becoming a fan (Chadwick Martin Bailey).6 As consumers make decisions directly with each other on Facebook, brands are left out of the mix. Confused, brands need a roadmap – or risk experimenting on their own customers. Seventy percent of brands indicate that they planned to increase spending on offsite social media investment, including Facebook in 2010, according to an eConsultancy study.7 Yet despite the urgency, brands lack a pragmatic approach. Rather than spin their wheels and waste resources experimenting on customers, brands need guidelines for Facebook page marketing success. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 4 ! !

Brands Must Follow the 8 Success Criteria for Facebook Page Marketing Marketers must apply new social marketing strategies to Facebook pages, and throw out a traditional one-way website approach. Altimeter Group gathered input from 34 sources to find out industry-wide best practices. We found Eight Success Criteria for Facebook page marketing that brands must follow, described below: Figure 1: The Eight Success Criteria for Facebook Page Marketing © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 5 ! !

Set Community Expectations Clearly Articulate Expectations to Reduce Confusion and Abuse. Brands must clearly articulate expectations, so fans will know how to best interact with the page. First, describe what fans can expect from the brand: from deals, tips, support, or just news and information. Second, brands must explain what they expect from fans, and define what is appropriate versus inappropriate – and what content will be policed. By setting these expectations up front, brands can prevent some forms of abuse, maximizing the experience for fans. Post Community Guidelines, Terms of Use, or a Moderation Policy. LiveWorld advises brands to post these guidelines “in a prominent area, so that if you need to take down inappropriate comments, it’s clear to users why they were deleted.”8 Provide Cohesive Branding Create a Holistic Experience that Matches the Brand. This creates a familiar experience for fans, and differentiates a brand’s page from other brands. The limited customization features of Facebook pages should not deter brands. As a first step, brands must complete their profile information, and upload branded logos, maximizing the real estate that Facebook pages allow in profile pictures. This creates a familiar entry point for new visitors. For a more powerful experience beyond the limited default features, create custom applications or tabs that resonate with your theme. The Community Roundtable reminds brands to design and designate custom landing pages.9 New visitors will recognize the brand experience they have come to know and expect. Be Up To Date Keep Interaction High with Fresh, Timely Content. New visitors want to know that the brand is present, while existing followers need a reason to stay engaged. Brands can accomplish both of these by keeping their pages current and consistently adding fresh content. In this conversational medium, it’s appropriate for brands to reflect the usage patterns of their active community. To do this, Vitrue advises brands to create a content calendar. This “ensure[s] you have the right mix of conversational and promotional posts, and you are keeping the content fresh for your fans.”10 Post content following the 80/20 rule: 80% of content should be informational, educational, or have entertainment value. Only 20% of content should be specifically about the brand’s product or services. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 6 ! !

Live Authenticity Build Trust by Personalizing Interactions with a “Human Touch.” Facebook is unique from other social networks in that it requires users to provide their real names, providing authentic people-to-people connections. As a result, brands should follow suit so fans connect to the people behind the brand. Posts should be written in first person, using a conversational tone. Brands that enable fans to have conversations with actual page administrators have the best chance at creating deeper relationships and brand loyalty. Do this by displaying administrator names or photos, or inviting page administrators to add signatures to their posts. Shiv Singh of PepsiCo notes the importance of “real, authentic people speaking on behalf of your brand for you online. If I don't know who's doing the talking it'll feel even more like a microsite experience than a Facebook one.”11 Participate in Dialog Connect with Customers by Fostering Two-Way Dialog. Brands must engage with fans in the manner which they are already accustomed. Two-way dialog spurs interaction, trust, and the spread of information. To foster two-way dialog, interact heavily with fans in existing discussions and create your own. When fans comment, acknowledge them. Stoke dialog by “reward[ing] the individual for participation and publicly thank[ing] them for being a fan,” suggests Olgivy’s 360 Digital Influence.12 Resist the temptation to flood the Facebook wall with canned marketing messages that will cause fans to tune out your messages (Lithium).13 Remember, direct conversations with consumers cascade to their network. Each time a fan comments on a brand’s Facebook page, that interaction is be shared with an average of 130 friends. 14 Enable Peer-To-Peer Interactions Be Efficient and Enable the Crowd’s Help. Customers are already talking to each other – brands should enable this natural behavior. Harnessing the crowd’s energy helps reduce costs and improves the experience for fans. Start by creating an environment that encourages peer-to-peer interactions – ask fans to respond to each other, showcase fan contributions, and recognize top contributors on Facebook’s wall. Take this engagement to the next level by enabling Facebook’s default discussion board features. Participate in these discussions and feature “customers’ top questions and answers.15 A full-fledged question and answer application and community, with © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 7 ! !

a moderator and recognition features, leverages the crowd to support itself. Keep in mind: Providing positive peer-to-peer experience requires a community policy, as well as trained community managers who are ready to monitor in real time. Foster Advocacy Foster Word of Mouth – the Holy Grail of Marketing. Prospects trust customers more than they trust brands, so promoting advocacy is an essential strategy. Because customer to prospect recommendations often occurs organically, it’s also a lower cost channel. Start by simply asking existing fans to suggest the page to others or “like” a wall post (Wildfire Interactive).16 Take it to the next level by encouraging fans to do something on the page that is worth sharing with their Facebook friends, e.g. “voting on something, ‘sounding off’ on something, sharing videos or photos, says KickApps.17 Get creative with custom tabs and applications by tapping into contests, polls, submissions and other means of self-expression that encourage members to invite and involve their friends. Advocacy is the most difficult of all marketing objectives because brands don’t have direct control over fans. Think of a Facebook page as a platform to enable your community to tell their story to their friends – give them value, and reasons to share. Solicit A Call To Action Bring it Back to Business and Provide a Succinct Next Step. Many brands fail to deliver simple call to actions that lead fans from engagement to purchase. “The idea is to eventually sell more of one’s product. Period,” reminds Digital Evolution Group.18 Start with simple, yet immediate call to actions on your landing page and wall page. Ask fans to “Like” your page, sign up for emails or newsletters, and most importantly, give them opportunities to “get to your core products” (LiveWorld).19 The latter need not be “pushy” – lead new visitors and existing fans to custom tabs where they can view exclusive deals, browse products, and make a transaction. Also, before you integrate existing e-commerce experiences or request a call to action, ensure your efforts are aligned with the expectations of the community – earn their trust first by following the previous Success Criteria. Brands Fail to Reach Maturity by Not Leveraging Social Features We selected 30 brands across six industries, and put them to the test by comparing and grading their Facebook page efforts. In our heuristic evaluation using the 8 Success Criteria for Facebook Page Marketing, we found that brands suffered at setting expectations, peer–to- © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 8 ! !

peer interactions, advocacy, and call to action. Despite the let downs, companies were strong at branding and keeping their pages up to date. Below, we highlight key findings from grading brands on the Eight Success Criteria: Figure 2: Maturity Index: Brands Fail to Reach Facebook Page Maturity © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 9 ! !

The retail industry leads, while luxury hotels and regulated industries lag. Not all industries perform equally. Our research found that industries that have direct relationships with their customers demonstrated similar success in social networking channels. Brands in the Retail industry had the higher average at 3.38, with Consumer Products and Goods not far behind at 3.26. Industries with communication limitations such as regulated industries such as Energy and Banking fared worse, scoring 2.74. Ironically, brands focused on real-world hospitality didn’t live up to their capabilities – we found that Luxury Hotels performed poorly at an average of 2.53. Figure 3: Overall Scores for Facebook Page Marketing, by Industry © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 10 ! !

Most brands don’t set expectations, risking community backlash. Success Criterion 1: Set Community Expectations Average Score: 2.08 out of 5.00 Although simple to implement, most brands overlooked this key success criterion. We checked wall pages, profile pages and custom tabs – and found that only eight out of 30 brands articulated the purpose of their Facebook page and appropriate and allowable fan behaviors. For example, none of the five retail brands in our evaluation scored above 2.00, ignoring the real possibility of a community backlash. In particular, we noted that fans of Sears’ Facebook page do not know if the company is responding to all customer issues. We read angry comments, yet the brand was inconsistent in its responses – reaching out to certain fans over others. Without clarifying the purpose of the page and its rules of engagement, fans who do not receive responses will feel alienated. Figure 4: Sears responds inconsistently, addressing some fans but not others. Sears responds to some fans and not others. Without clarifying its rules of engagement, some fans may feel alienated. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 11 ! !

Not surprisingly, we found that brands under fire – BP, Chevron, and Toyota – scored high, at 5.00, 5.00, and 4.00 respectively. On its Commenting tab, BP clearly states that it: “created this Facebook page to engage the public in an informative conversation,” reserving the right to disallow comments that it considers in appropriate. In its Community Guidelines, Chevron says that though it supports "lively, open discussion, we reserve the right to delete comments at our discretion.” Toyota asks fans to “keep the Toyota USA page one that all our fans will ‘Like’” on its wall page. Surprisingly, Nestle still had not added comment or moderation guidelines, despite its recent “brandjacking” by Greenpeace and other activists.20 Figure 5: Chevron sets expectations with Community Guidelines and a “few simple rules.” If a groundswell breaks, Chevron can choose to remove comments at its discretion and refer fans back to these guidelines. These simple measures can save headaches later on. Because Fidelity Investments, Intel, and AXE have clearly articulated expectations, all scoring a high of 5.00, they set the tone for their pages – improving first impressions and fan satisfaction. Brands differentiate their Facebook pages and extend the brand experience. Success Criterion 2: Provide Cohesive Branding Average score: 3.90 out of 5.00 Facebook pages have become an extension of brand experiences online. We checked for logos, completed profile pages, and custom tabs with consistent branding. Our evaluation revealed that most brands scored high on branding their Facebook pages, averaging 3.90 of out of 5.00 points across industries. Retail, Auto, and Consumer Products and Goods did particularly well, achieving “Maturity” by scoring at least a 4.00. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 12 ! !

For example, Four Seasons and BMW USA direct new visitors to branded landing pages, reflecting their luxury experiences within Facebook. Sears makes the most of profile picture real estate by uploading a banner logo with promotional information. These brands optimize within Facebook’s limited customization features to differentiate their pages and welcome new visitors with a familiar look and feel. Figure 6 and 7: Four Seasons and BMW USA welcome new visitors with branded landing pages. Four Seasons and BMW USA directs new visitors to branded landing pages on their Facebook pages, immediately establishing a familiar experience for customers. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 13 ! !

Sears optimizes its profile picture with a banner logo, distinguishing its page from other brands. Brands post frequently with fresh content. Success Criterion 3: Be Up To Date Average Score: 5.00 out of 5.00 Brands succeeded at reflecting the usage patterns of their fans, keeping their pages up to date with fresh content. All 30 brands had updated their pages within the last two weeks, a standard which we consider a minimum. In fact, more than two thirds of brands (21 out of 30) had updated their pages within the last 24 hours. Discounting one outlier, we found brands posting an average of nearly one post per day, or 27.1 posts during the month of June. On the high end, Ford posted to its wall 86 times in June, AXE posted 67 times, and BMW USA posted 63 times. On the low end, W Hotels posted to its wall just four times in June, while Old Spice and Nestle posted seven (Old Spice’s viral campaign started in July). Brands lack authenticity, reducing the opportunity for deeper engagement and trust. Success Criterion 4: Live Authenticity Average Score: 2.87 out of 5.00 © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 14 ! !

By connecting with fans through natural conversation and acknowledging the team behind the page, brands stand to gain trust and deeper engagement. We checked for wall posts written in the first person and in a sufficiently conversational tone; and then looked for names, photos, or signatures by page administrators. Disappointingly, we found that few brands revealed the identities of the people who manage their Facebook pages, preferring to keep the interaction between fan-company over person-to-person. We found only one company that did well demonstrating authenticity – each wall post from AXE is signed by “JenniewithAxe” and a custom tab includes Jennie’s photo and biography. Some responses from Sears, GM, Four Seasons, and SAP also included the names of the page administrator. BP, Chevron, and Nestle, all brands under fire, scored lowest at 1.00 or 1.50 for Authenticity. Figure 8 and 9: AXE fans engage, knowing that they’re talking to “JenniewithAXE.” AXE fans know who they are talking with, leading to deeper engagement and trust over time. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 15 ! !

When it comes to two-way communication and dialog, brands talk at their fans – not with them. Success Criterion 5: Participate in Dialog Average Score: 3.10 out of 5.00 Dialog between users is a key behavior in Facebook – to yield deeper engagement, brands should follow suit. We checked a sample of posts within the month of June to see if brands were initiating dialog and responding to comments, as well as furthering discussions with back-and-forth dialog. Only half of brands (16 of 30) reached a score of 4.00 or “Maturity” for participating in Dialog. The lowest scoring brands were BP, Chevron, Xerox, and Nestle; while on average Retail, Auto, and Consumer Products and Goods scored higher (3.80, 3.60, and 3.20 respectively). SAP was one of two brands that scored 5.00, by responding substantively to wall comments and questions in its discussion board. Other brands also demonstrate participation in dialog: Macy’s and Toyota USA comment on photos uploaded by fans; Walmart, Fidelity Investments and General Motors respond to some fan comments. These brands demonstrate commitment to fan interaction, and will benefit from the subsequent spread of discussion. Figure 10 and 11: SAP regularly responds to wall posts, while Macy’s comments on photos uploaded by fans. Through substantive two-way dialog, SAP increases fan engagement. Also, take notice of a “real” signature from a member of SAP’s social media team, Brian Ellefritz. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 16 ! !

Macy’s invites fans to upload photos, then recognizes contributions with a friendly comment. Brands fall flat by muffling their own customers – and miss out on leveraging the crowd. Success Criterion 6: Enable Peer-to-Peer Interactions Average Score: 2.03 out of 5.00 By facilitating peer-to-peer interactions, brands can maximize efficiency by allowing fans to do the work for them. Here, we looked for explicit encouragement of peer-to-peer interactions through wall posts, applications, or discussion boards. We found that brands failed miserably, achieving only 2.03, the lowest average of all our Success Criteria. Half of brands (15 out of 30) made no efforts to facilitate peer-to-peer interactions at all, scoring only a 1.00. Here, our best case example is from Pampers, which scored a 4.0 for facilitating peer-to-peer interaction. Not only does it enable and participate in a discussion board, Pampers brings questions from its discussion boards onto its wall, soliciting additional answers from fans and propagating further interaction. Pampers also doesn’t shy away from criticism of its new diapers,21 tackling discussions head on in its discussion board.22 © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 17 ! !

Figure 12: Pampers posts fan questions to its wall and solicits further help. Peer-to-peer interaction isn’t limited to its discussion board – Pampers encourages additional peer support by posting questions to its wall, for all fans to respond. Brands don’t empower fans to speak on behalf of the brand – failing to activate positive word of mouth. Success Criterion 7: Foster Advocacy Average Score: 2.27 out of 5.00 Facebook enables brands to activate word of mouth by allowing fans to share with each other. Unfortunately, we found that this is another area in which brands are severely lacking, averaging 2.27. We looked for simple requests for fans to spread the word, or custom applications that entice fans to participate and share interactions on their own walls. We found few examples. Brands in Regulated Industries, Luxury Hotels, and Tech B2B fared the worse, at 1.40, 1.60, 1.80 respectively. Only nine brands reached a score of 4.00 or “Maturity,” achieved by encouraging fans to share their brand enthusiasm. These were Macy’s, Target, Kohl’s, Honda, Toyota, Four Seasons, Cisco, Old Spice, and Pampers. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 18 ! !

Figure 13: Kohl’s Raise Your Receipt Contest asks fans to share their story with others. Kohl’s custom application encourages fans to share “savings stories” with friends by posting comments to their own walls. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 19 ! !

Figure 14 and 15: Old Spice captivates audiences with its commercials, then cleverly integrates the campaign on its Facebook page. Old Spice hits the jackpot by creating content that fans actually want to share with their friends. More recently, it created dozens of video responses to actual fans on Facebook and other social media properties. Beyond engagement and word of mouth, few brands deliver call to actions that result in actual transactions. Success Criterion 8: Solicit a Call to Action Average Score: 2.45 out of 5.00 Like all investments, Facebook page marketing should yield positive returns for brands. With fans opting in, brands should not only engage, but advance members closer to the brand. We found that brands are hesitant to leverage business opportunities, scoring an average of 2.45 in call to action. We looked at simple call to actions that increase brand engagement, for example, signing up for newsletters or discounts, to making an actual purchase from a custom application. Highly consumer-focused industries like Luxury Hotels and Consumer Products and Goods, in particular, are missing opportunities to deliver call to actions (scoring at 2.00 and 1.80, respectively). On the other hand, the Retail industry demonstrates some success – Macy’s, Target, and Kohl’s all scored at least a 4.00. On the Target page, fans can order and print © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 20 ! !

Facebook photos right from its page wall. Kohl’s fans can purchase gift cards, and sign up for wedding registries. Figure 16: Target’s Facebook page photo application allows fans to order and print Facebook photos. With Target’s custom photo application, fans can make a transaction without ever leaving Facebook. ! © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 21 ! !

Recommendations As brands rush head first into social marketing, they often lack a long-term plan or vision. To prepare for this new medium, brands must follow these best practices: Put aside your read-only playbook and tap into two-way social marketing. Marketers must put down the one-way directional marketing playbook and tap into the two-way behaviors of social networks. The 30 brands we reviewed averaged a meager 2.03 out of 5.00 points in encouraging peer-to-peer interactions. Brands that want to enter this space cautiously can start with simple built-in features; for example, using Facebook Events to promote physical meetings also results in word of mouth and community interaction (Spredfast).23 Sophisticated brands will use a combination of traditional interactive marketing to retain existing fans, and social marketing to attract new ones. Bolster your Facebook pages with applications from third parties. Default Facebook features are limited in advanced functionality. Instead, add features from third party applications that enhance interactions, discussions, or utility. While Facebook pages are great for obtaining and engaging fans, they are limited in the ability to conduct call to action: “If looking for conversion or lead generation, custom applications should be considered.”24 We sought input on custom applications from vendors such as Buddy Media, Context Optional, Involver, RockYou, and Wildfire Interactive. Connect the Facebook experience with existing efforts, like your corporate website. Customers want to connect to their friends on Facebook and beyond. As you become advanced, you must integrate Facebook features into your corporate website, providing opportunities for instant engagement and word of mouth. However, don’t foolishly send away your hard-earned traffic to Facebook without a strategy. Instead, aggregate Facebook discussions right on your corporate website by using vendors such as Janrain and Gigya, who specialize in managing social network logins.25 Measure and analyze based on business goals – not by fans or “likes.” !Don’t approach any new effort without gauging your investment. While the natural reaction is to measure interaction and number of fans or “likes,” brands must measure based on business goals like word of mouth, increased satisfaction, or increased traffic to e-commerce applications. Get actionable – use real KPI formulas by referencing Altimeter Group’s research on Social Marketing Analytics.26 Reduce Risk: Use this scorecard as your long-term roadmap. Use these Eight Success Criteria as a roadmap for your own Facebook page efforts. Benchmark your efforts each quarter and demonstrate increased improvements. Next, conduct the same benchmarks for your competitors and track their performance. Request that your agency partners use these Eight Success Criteria as a standardized method to gauge the impact of your efforts. We received best practices content from agencies like AKQA, Edelman Digital, Horn Group, Ogilvy, and Razorfish. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 22 ! !

Appendix Methodology and Scope Altimeter Group conducted research from technology vendors, agencies, and brands; and initiated our own conversations about Facebook page marketing best practices.27 Based on these findings, we developed a scorecard of Eight Success Criteria for Facebook Page Marketing, and used these criteria to conduct a heuristic evaluation of 30 brands. Brands for this study were selected by taking an inventory of Fortune 500 brands, filtering for Facebook presence, and segmenting into industry categories. Because companies should approach Facebook with a long-term approach, we only selected brands that demonstrated ongoing relationships – not short-term Facebook page campaigns. To score brands, we reviewed wall posts for the month of June 2010, as well as default and custom tabs and applications. We checked a minimum of five wall post threads in-depth, to determine whether brands were responding to fans. This study was focused on Facebook Pages only, and did not take into account Facebook advertising offerings, groups, community pages, or other features. Expect Altimeter Group to conduct further research on the integration of social technologies into corporate websites in future research. Get the Quantitative Scorecard: Altimeter Group Advisory Services Don’t approach your Facebook page without a strategy. Use Altimeter Group’s quantitative scorecard to evaluate or develop a roadmap your Facebook efforts. To learn more about our research-based advisory services, please contact Jeremiah Owyang at jeremiah@altimetergroup.com. © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 23 ! !

Endnotes !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 “Engagement on Social Networks Top Priority for Marketers,” eMarketer, January 26, 2010 (http://www.emarketer.com/Article.aspx?R=1007479) 2 Mark Zuckerberg, “500 Million Stories,” The Facebook Blog, July 21, 2010 (http://blog.facebook.com/blog.php?post=409753352130) 3 Facebook Press Room, Retrieved July 21, 2010 (http://www.facebook.com/press/info.php?statistics) 4 Ben Parr, “Facebook Is the Web’s Ultimate Timesink,” Mashable, February 2010 (http://mashable.com/2010/02/16/facebook-nielsen-stats) 5 “Friending The Social Consumer,” Nielsen Wire, June 16, 2010 (http://blog.nielsen.com/nielsenwire/online_mobile/friending-the-social-consumer) 6 “Social Fans More Likely to Buy,” eMarketer, March 16, 2010 (http://www.emarketer.com/Article.aspx?R=1007568) 7 Andy Beal, “70% of Companies Plan to Spend More on Twitter & Facebook Marketing,” Marketing Pilgrim, February 4, 2010 (http://www.marketingpilgrim.com/2010/02/70-of- companies-plan-to-spend-more-on-twitter-facebook-marketing.html) 8 From document provided to Altimeter Group: “Facebook Opportunities and Best Practices,” LiveWorld, July 7, 2010 9 From document provided to Altimeter Group: “Roundtable Summary: Facebook Update - Community Pages and the 'Like' Button,” The Community Roundtable, June 30, 2010 10 From document provided to Altimeter Group: “Best Practices for Social Media Marketers: Publishing to Facebook,” Vitrue, July 20, 2010 11 Shiv Singh, “Facebook Microsite Syndrome. 10 Signs you have it today,” Going Social Now, May 2, 2010 (http://www.goingsocialnow.com/2010/05/the-facebook-microsite-syndrom.php) 12 “Facebook Bootcamp Redux: Creating A Conversation Calendar For Your Brand,” Ogilvy’s 360 Digital Influence, February 1, 2010 (http://blog.ogilvypr.com/2010/02/facebook-bootcamp- redux-creating-a-converstation-calendar-for-your-brand) 13 From direct email to Altimeter Group, Lithium, July 13, 2010 14 Facebook Press Room, Retrieved July 21, 2010 (http://www.facebook.com/press/info.php?statistics) © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 24 ! !

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 15 “LiveWorld Brings Online Customer Support to Brands’ Facebook Pages,” LiveWorld Newsroom, July 7, 2010 (http://www.liveworld.com/news/press/100707.html) 16 “6 Clever Tricks to Double the Effectiveness of Your Fan Page Status Updates!” Wildfire Social Media Marketing Blog, June 2, 2010 (http://blog.wildfireapp.com/2010/06/02/6-clever- tricks-to-double-the-effectiveness-of-your-fan-page-status-updates) 17 From report provided to Altimeter Group: “How can I leverage KickApps to enhance my Facebook presence?” KickApps, July 12, 2010 18 From direct email to Altimeter Group, Digital Evolution Group, July 20, 2010 19 From document provided to Altimeter Group: “Guidelines for a Successful Facebook Business Page,” LiveWorld, July 7, 2010 20 Jeremiah Owyang, “Crisis Planning: Prepare Your Company For Social Media Attacks,” Web Strategy, March 22, 2010 (http://www.web-strategist.com/blog/2010/03/22/prepare-your- company-now-for-social-attacks) 21 Ellen Byron, “Diaper Gripes Grow Louder for P&G,” Wall Street Journal, May 14, 2010 (http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052748704635204575242521217158 484.html) 22 From Pampers Facebook page discussion board: “New Pampers are HORRIBLE!” April 14, 2010 (http://www.facebook.com/topic.php?uid=89121585311&topic=13293) 23 From direct email to Altimeter Group, Spredfast, July 13, 2010 24 From document provided to Altimeter Group: “Roundtable Summary: Facebook Update - Community Pages and the 'Like' Button,” The Community Roundtable, June 30, 2010 25 For example, Citysearch uses Janrain Engage to enable Facebook functionality on their website resulting in 94% of an average of 40 people to publish reviews back to their Facebook friends resulting in a 300% increase in online registrations. Justin Smith, “Social Game Developer Zynga Raises $29 Million Series B, Acquires YoVille,” Inside Facebook, July 23, 2008 (http://www.insidefacebook.com/2009/03/23/citysearch-each-item-shared-through- facebook-connect-generates-30-clicks) 26 Jeremiah Owyang, “Slides and Recording: Social Marketing Analytics Research Findings,” Web Strategy, June 10, 2010 (http://www.web-strategist.com/blog/2010/06/10/slides-and- recording-social-marketing-analytics-research-findings) 27 Jeremiah Owyang, “Research and Webinar: Facebook Marketing Criteria for Success,” Web Strategy, July 7, 2010 (http://www.web-strategist.com/blog/2010/07/06/research-and-webinar- facebook-marketing-criteria-for-success) © 2010 Altimeter Group ! Attribution-Noncommercial-Share Alike 3.0 United States 25 ! !

About Us Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. We have four areas of focus: Leadership and Management, Customer Strategy, Enterprise Strategy, and Innovation and Design. About Jeremiah Owyang, Partner Jeremiah Owyang (@jowyang) is a Partner with Altimeter Group. He focuses on social business and disruptive technologies for customer strategies. Previously, Jeremiah was a Senior Analyst at Forrester Research, Director of Corporate Media Strategy at PodTech Network and Manager of Global Web Marketing at Hitachi Data Systems. He writes the Web Strategy blog and is a columnist at Forbes CMO Network. About Christine Tran, Researcher Christine Tran (@christineptran) is a Researcher with Altimeter Group. She conducts research and analysis on customer strategies, focusing on how brands can leverage emerging technologies to their advantage. Christine blogs at christineptran.com. About Alan Webber, Partner Alan Webber (@AlanWebber) is a Partner with Altimeter Group. Alan analyzes the impact of emerging technologies on government behavior and interactions between government, citizens, and businesses. Previously, Alan was a Principal Analyst at Forrester Research where he covered the B2B online and social media space, usability, the user experience, and user based design efforts. Alan has also led strategic planning, performance management, eGovernment, and Web initiative efforts at the Department of the Interior and the National Science Foundation. He writes the Ronin Research blog. © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States 26 ! !

Contact Us Altimeter Group Altimeter’s Hangar (at the Crossroads) 1875 S. Grant St. #680 San Mateo, CA 94402-2667 info@altimetergroup.com www.altimetergroup.com

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The 8 Success Criteria For Facebook Page Marketing

by Jeremiah Owyang

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