Jeremiah Owyang Senior Analyst, Social Computing Dec 5, 2007 Keynote Presentation for Web Community Forum Facebook Offers a Ready-Made Marketing Platform

Theme Facebook, a ready-made Marketing platform, offers a vast toolset (with challenges) but brands must first develop a strategy

Agenda – Why Facebook? Facebook offers a bevy of opportunities Challenges of Facebook Platform Develop a Strategy

Why Facebook?

Facebook offers a bevy of opportunities

Challenges of Facebook Platform

Develop a Strategy

Why Facebook Rapid Adoption and Demographics

Rapid Adoption and Demographics

Timeline Launch: Harvard/College Only Open to Public 2004 2005 2006 2007 2008 Application Platform Pages and Social Ads

Facebook keeps growing Social Utility 40-50Million users 134-200% growth or more in last year over 40% are over age 35 6000 (Updated: 10,000 now) applications deployed Valued at $15 Billion Average visitor stays 20 minutes Domination North America, Middle East College Educated White Collar

Social Utility

40-50Million users

134-200% growth or more in last year

over 40% are over age 35

6000 (Updated: 10,000 now) applications deployed

Valued at $15 Billion

Average visitor stays 20 minutes

Domination North America, Middle East

College Educated

White Collar

2002 2002 2003 2004 Q4 2008? My Space Facebook Friendster = 25 million | 65% Growth Facebook = 40-50 million | 200% Growth MySpace = 120 million | 72% Growth Friendster Facebook could eclipse MySpace Early 09 200 Million

Facebook, why should I care? Rapid Adoption and Demographics Communities are important

Rapid Adoption and Demographics

Communities are important

Members use Social Networks for Communication Base: US online adult social networking site users, Source: North American Technographics Media And Marketing Online Survey, Q3 2007 40% Watched a video: 55% 51% 47% 53% 59% 65% 70% 79% 86% Wrote on someone’s profile page (e.g. wrote on a wall, posted a testimonial): Read a blog or journal: Listened to music: Send a friend/connection request: Searched for someone that I used to know: Looked at profiles of people I didn’t know: Posted/updated my profile: Sent a message to someone: See what my friends are up to:

…Which inspires trust

Facebook, why should I care? Rapid Adoption and Demographics Communities are important Rich User and Network Data

Rapid Adoption and Demographics

Communities are important

Rich User and Network Data

Rich user information

Affinities

And network data

Facebook, why should I care? Rapid Adoption and Demographics Communities are important Rich User and Network Data Information Spreads Quickly

Rapid Adoption and Demographics

Communities are important

Rich User and Network Data

Information Spreads Quickly

News Feed encourages spread of ideas Trend Watch: News Feed Optimization (NFO)

Facebook, why should I care? Rapid Adoption and Demographics Communities are important Rich User and Network Data Information Spreads Quickly Other Platform Features

Rapid Adoption and Demographics

Communities are important

Rich User and Network Data

Information Spreads Quickly

Other Platform Features

Groups and Communities

Inbox: A “new” email Trend Watch: Email is for “old” people

Embedded Media –with social hooks Trend Watch: “ Micromedia”

Agenda – Why Facebook? Facebook offers a bevy of opportunities Challenges of Facebook Develop a Strategy

Why Facebook?

Facebook offers a bevy of opportunities

Challenges of Facebook

Develop a Strategy

The Many Opportunities for Marketers Advertising Banner Ads Contextual//NewsFeed/Flyer Ads Social Ads Marketing Facebook Pages and Sponsored Groups Beacon Word of Mouth/Interaction Applications Intelligence Profiles and Network information Public Groups

Advertising

Banner Ads

Contextual//NewsFeed/Flyer Ads

Social Ads

Marketing

Facebook Pages and Sponsored Groups

Beacon

Word of Mouth/Interaction

Applications

Intelligence

Profiles and Network information

Public Groups

Banner ads Recently, Microsoft invested in Facebook, broadening it’s Advertising opportunities

Facebook Ads Facebook Ads provide accuracy, controled spend and metrics –all self-service

Targeted Advertising

…although accuracy questioned Image via David Parmet www.parmet.net/pr/

Sponsored Groups: Branded Interaction

Case Study: Wal-Mart’s Back to College Media “Soundcheck Personalized “dorm” Recommend to others No discussions Results Lack of community involvement 800 members in two weeks

Media “Soundcheck

Personalized “dorm”

Recommend to others

No discussions

Results

Lack of community involvement

800 members in two weeks

Target’s Rounders Program "Your Mission: Try not to let on in the Facebook group that you are a Rounder," the newsletter read. "We love your enthusiasm for the Rounders, and I know it can be hard not to want to sing it from the mountaintops [and in the shower, and on the bus]. However, we want to get other members of the Facebook group excited about Target, too! And we don't want the Rounders program to steal the show from the real star here: Target and Target's rockin' Facebook group. So keep it like a secret!"

"Your Mission: Try not to let on in the Facebook group that you are a Rounder," the newsletter read.

"We love your enthusiasm for the Rounders, and I know it can be hard not to want to sing it from the mountaintops [and in the shower, and on the bus]. However, we want to get other members of the Facebook group excited about Target, too! And we don't want the Rounders program to steal the show from the real star here: Target and Target's rockin' Facebook group. So keep it like a secret!"

Case Study: Apple Students Embracing existing community Free product sample eCommerce Cross Promotion Results 420,000 users 12,000 topics

Embracing existing community

Free product sample

eCommerce

Cross Promotion

Results

420,000 users

12,000 topics

Facebook Pages allow brands to collect “fans”

Remember Trust

Ads displayed to friends of brand fans “Fan-Sumers” 2. Brands can buy paid ads. (Frequency capped – users will see no more than two per day). Users ‘dial’ the frequency of the ads. 1. Users can “poke” each other with branded viral messages -- combine social actions such as a purchase of a product or review of a restaurant – with an advertiser’s message.

Beacon: Third Party Partners can Reach Facebook Network Opportunities Greater Trust (if done correctly) Challenges Not Opt-In Many Privacy concerns Resistance to peer based recommendations Brands need to ‘converse’ to get fans

Opportunities

Greater Trust (if done correctly)

Challenges

Not Opt-In

Many Privacy concerns

Resistance to peer based recommendations

Brands need to ‘converse’ to get fans

Companies using Beacon Blockbuster Chase The Coca-Cola Company Verizon Epicurious.com Flip.com Crest Whitestrips (whitestrips.com) Owned by Proctor and Gamble Dove Cream Oils (Dove.com) Unilever Company Herbal Essences (herbalessences.com) Clairol Division owed by Proctor and Gamble NYTIMES.COM Saturn AllPosters.com Bluefly.com CBSSports.com Dotspotter ExpoTV Gamefly Hotwire Joost Kiva Kongregate LiveJournal Live Nation Mercantila National Basketball Association Overstock.com (RED) joinred.com Redlight (stay away from adult sites any one of them can be this redlight company and be telling your friends about your sex fetishes. Yuck!) SeamlessWeb Sony Online Entertainment LLC (station.com) Sony Pictures STA Travel (statravel.com) The Knot TripAdvisor Travel Ticker TypePad viagogo Vox Yelp WeddingChannel.com Zappos.com ebay bluefly.com Travelocity echomusic pronto.com citysearch Iwon Busted Tees College Humor (same company as busted tees) Fandango Red indicates hesitation after BeaconGate

Blockbuster Chase The Coca-Cola Company Verizon Epicurious.com Flip.com Crest Whitestrips (whitestrips.com) Owned by Proctor and Gamble Dove Cream Oils (Dove.com) Unilever Company Herbal Essences (herbalessences.com) Clairol Division owed by Proctor and Gamble NYTIMES.COM Saturn AllPosters.com Bluefly.com CBSSports.com Dotspotter ExpoTV Gamefly Hotwire Joost Kiva Kongregate LiveJournal Live Nation Mercantila National Basketball Association

Overstock.com (RED) joinred.com Redlight (stay away from adult sites any one of them can be this redlight company and be telling your friends about your sex fetishes. Yuck!) SeamlessWeb Sony Online Entertainment LLC (station.com) Sony Pictures STA Travel (statravel.com) The Knot TripAdvisor Travel Ticker TypePad viagogo Vox Yelp WeddingChannel.com Zappos.com ebay bluefly.com Travelocity echomusic pronto.com citysearch Iwon Busted Tees College Humor (same company as busted tees) Fandango

Widgets: Branded Affinity Groups

Widgets Proliferate on Facebook Over 78 million widgets live on Facebook Over 42 million monthly unique visitors Growing 900K new users a month Over 700K widgets embedded daily User Direct Friends Indirect Friends Interested Parties

Over 78 million widgets live on Facebook

Over 42 million monthly unique visitors

Growing 900K new users a month

Over 700K widgets embedded daily

Opportunities for Widgets: Span multiple networks Even Smaller developers can monetize Use existing Ad Networks Advertisers Skin, Co-Brand

Span multiple networks

Even Smaller developers can monetize

Use existing Ad Networks

Advertisers

Skin, Co-Brand

Case Study: Vampires and Movie “Skins”

Agenda – Why Facebook? Facebook offers a bevy of opportunities Challenges of Facebook Develop a Strategy

Why Facebook?

Facebook offers a bevy of opportunities

Challenges of Facebook

Develop a Strategy

Challenges Facebook Data sucked into “Black Hole” Lack of Web Analytics for Marketers User Data Facebook releases features –without aligning with customers Newsfeed Beacon Workplace productivity concerns Some companies will block Privacy Concerns with Beacon

Facebook Data sucked into “Black Hole”

Lack of Web Analytics for Marketers

User Data

Facebook releases features –without aligning with customers

Newsfeed

Beacon

Workplace productivity concerns

Some companies will block

Privacy Concerns with Beacon

Beacon Revolt

Agenda – Why Facebook? Facebook offers a bevy of opportunities Challenges of Facebook Develop a Strategy

Why Facebook?

Facebook offers a bevy of opportunities

Challenges of Facebook

Develop a Strategy

The four step approach to the groundswell People Assess your customers’ Social Technographics profile Objectives Decide what you want to accomplish Strategy Plan for how relationships with customers will change Technology Decide which social technologies to use P O S T

Demographics and Technographics Is Facebook my audience? How do they use technologies? What are they talking about? Who are they? What do they want?

Is Facebook my audience?

How do they use technologies?

What are they talking about?

Who are they?

What do they want?

Objective: What are you trying to accomplish? Sponsored Groups Members become contributors Embracing Customer created groups Peer –to- peer support Supporting Victoria’s PINK Applications Excite your biggest fans Word of mouth Energizing Sponsored Groups (Jeep, Apple) Advertisements Create an emotional Attachment Advertising based on network Speaking Earnst and Young Careers (Sponsored Group) Profile Research Direct Customer Insight New Product Ideas Beta Testing Listening Examples Contribution Goal

Sponsored Groups

Customer created groups

Victoria’s PINK

Applications

Sponsored Groups (Jeep, Apple)

Advertisements

Earnst and Young Careers (Sponsored Group)

Profile Research

Strategy and Tools Analysis: Build or Join Experimentation leads to Understanding Gain Market Intelligence Advertise Efficiently Embrace and Lead Communities Deploy Campaign Widget Sponsored Groups/Pages Integrate

Analysis: Build or Join

Experimentation leads to Understanding

Gain Market Intelligence

Advertise Efficiently

Embrace and Lead Communities

Deploy Campaign

Widget

Sponsored Groups/Pages

Integrate

Best Practices Listen before Speaking Members are in control Allow for discussions Segment Media as a “lead in” Trouble Kick starting? Be a resource, and reward Integrate with Marketing Initiatives

Listen before Speaking

Members are in control

Allow for discussions

Segment

Media as a “lead in”

Trouble Kick starting? Be a resource, and reward

Integrate with Marketing Initiatives

Phases for Deployment Understand Facebook, experiment with existing tools, deploy Advertising Join related groups, build and deploy group or Facebook page Deploy applications, integrate experience with other web vehicles, segment novice intermediate advanced Aware of ‘distributed’ brand, monitoring and observing communities of practice Already has deployed other social media strategies, increasing budget and resources Uses social media tools for most product launches, crises, measures and has resources Maturity Strategy Strategies should compound

Understand Facebook, experiment with existing tools, deploy Advertising

Join related groups, build and deploy group or Facebook page

Deploy applications, integrate experience with other web vehicles, segment

novice

intermediate

advanced

Aware of ‘distributed’ brand, monitoring and observing communities of practice

Already has deployed other social media strategies, increasing budget and resources

Uses social media tools for most product launches, crises, measures and has resources

Maturity

Strategy

Cost considerations…Facebook Costs: (Time/Capital) Research $0 Development, Design = $0 - varied Advertisements = cheap to large Sponsored Groups $100k/month =May be opportunity gain

Costs: (Time/Capital)

Research $0

Development, Design = $0 - varied

Advertisements = cheap to large

Sponsored Groups $100k/month

=May be opportunity gain

Thinking bigger…

Don’t limit to Facebook Brands should not limit strategy to Facebook Alone Prepare for The Distributed Web Understand OpenSocial Understand the Aggregation of Social Graph Tools come and go, what sustains is a strategy

Brands should not limit strategy to Facebook Alone

Prepare for The Distributed Web

Understand OpenSocial

Understand the Aggregation of Social Graph

Tools come and go, what sustains is a strategy

What it all means…

Facebook: Many tools, many opportunities Privacy and Data concerns Develop a Strategy People Objectives Strategy Tools Learn to think bigger

Many tools, many opportunities

Privacy and Data concerns

Develop a Strategy

People

Objectives

Strategy

Tools

Learn to think bigger

Theme Facebook, a ready-made Marketing platform, offers a vast toolset (with challenges) but brands must first develop a strategy

Thank you Jeremiah Owyang Senior Analyst Social Computing Forrester Research web-strategist.com/blog __________________ Web Strategy Facebook Group