Big Brands Facebook Demographics Case Studies Best Practices3037

Slide 2: Big Brands & Facebook: Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrester Research October 8, 2007

Slide 3: Theme Facebook marketing requires communicating, not advertising 3 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 4: Agenda • What are the demographics of Facebook users? • What are some best practices for brand marketing on Facebook? 4 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 5: Facebook’s demographics • 60 million active users projected by end of 2007 » Currently at 44 million active users » Half of current users return daily • Facebook also projects that 75% of worldwide users will be outside of college Source: Facebook 5 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 6: A drill down of Facebook’s US demographics • 56.3% female • 58.4% have some college education • 14% are non-white • 34% work as professionals, executives, sales, education, or technical » 12% are full time students • 12% have children under 16 Source: Nielsen//NetRatings 6 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 7: Facebook’s international age distribution Source: Facebook internal data, September 2007 7 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 8: Facebook users have “aged” over the past year Percent of US Facebook users in each age group August 2006 20% August 2007 Under 18 21% 35% 18-24 23% 8% 25-34 11% 36% 35+ 45% Source: Nielsen//NetRatings Note: These number differ significantly from Facebook’s internal data, which has 35+ as 6% of all users worldwide in September 2007 8 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 9: Facebook demographics best practices • Anticipate that the demographics will change rapidly over the next 12-18 months • Adjust your marketing plans and plan for flexibility • Beware of relying on what worked yesterday, especially with fickle college students and newbie 35+ users 9 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

Slide 10: Agenda • What are the demographics of Facebook users? • What are some best practices for brand marketing on Facebook? 10 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 11: Microsoft handles IAB standard ad sales 11 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 12: Targeting beyond demos 12 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 13: Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories 13 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 14: Facebook Flyers give self-service control 14 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 15: 15 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 16: Theme Facebook marketing requires communicating, not advertising 16 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 17: Sponsored Groups • Group page with customized navigation, look & feel • Usually includes a significant media buy to drive traffic to the sponsored group page » Display ads and flyers » Newsfeed targeting • Costs usually in the six figures for a three month engagement • Note that any company can set up a group for free 17 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 18: Jeep treats social networks like another channel 18 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 19: Misses a chance to create a unique community 19 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 20: Victoria’s Secret also looks like an ad… 20 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 21: But the community is highly engaged 21 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 22: Crest White Strips case study Targeted 20 colleges Offered free concerts and movie screenings Live chat facilitate interactions Measured sales impact at nearby stores 22 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 23: Ernst & Young engages in a conversation to recruit college students 23 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 24: Sponsored Groups best practices • Understand how similar groups meet/don’t meet needs already • Create a unique experience that • Enable discussion board, The Wall, photos, etc. • Read and respond to comments • Be transparent about your role and perspective 24 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 25: Why applications on Facebook are different 25 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 26: Because I know Dave, his review has context 26 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 27: My colleague Peter Kim shares travel 27 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 28: Application best practices • Create useful apps that model what friends do naturally – share info, experiences, and laughs • Plan out how to make your app viral • Get feedback from users once you launch 28 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 29: Recommendations • Facebook marketing is about communicating, not advertising – so act appropriately • Be a part of the Facebook experience » More like content than advertising • Tap into the reasons why friends share • Listen, learn, and be ready to make mistakes 29 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 30: Wal-Mart keeps trying – kudos for effort 30 contents © 2007 Entire Forrester Research, Inc. All rights reserved.

Slide 31: Thank you Charlene Li +1 650/581-3833 cli@forrester.com www.forrester.com blogs.forrester.com/charleneli 31 contents © 2007 Entire Forrester Research, Inc. All rights reserved.