The App Gap FGIBI Webinar Slideshare 2008-06-25

Slide 1: “Should Your Business Be Friends with Facebook?” New research on how businesses are using Facebook and other social networking strategies -- what’s working, what’s in the way, what’s next? Jenny Ambrozek, Bill Anderson, Victoria Axelrod, Conveners & Facebook Group in Business Investigation Participants Eric Edelstein, Francois Gossieaux, Kimberly Samaha June 25, 2008 © Facebook Groups in Business Initiative 2008

Slide 2: Francois Eric Edelstein Gossieaux Adam Kovitz Dave Duarte eSquared RNIA Niki Lambropoulos Kimberly Samaha Jenni Beattie Ray Cha Huddlemind Marketing 2.0 Sustainable Energy Hellenes Educators Network PR CScout London Jewish , Centre Participating Facebook Groups & Owners OUR FACES •10 participating Facebook Groups •6 countries, 4 continents •6 real world entities on Facebook •retail chain, software venture, trend consultancy, think tank, PR company, real world organization Jenny Ambrozek Bill Anderson Victoria Axelrod 21stCenturyOrganization 21stCenturyOrganization •4 only- on- Facebook ventures •virtual association, community of Conveners practice, interest groups Patti Anklam Jill Howell Josh Katinger Jeffrey Keefer Danielle Ravich Advisors and Analysts © Facebook Groups in Business Initiative 2008

Slide 3: FGIBI Overview 1. What we did, when, & why 2. What we learned about Facebook Groups in Business 3. Discussion 4. “Should your business be friends with Facebook?” © Facebook Groups in Business Initiative 2008

Slide 4: Facebook Group Growth Percent of global Internet users who visit this site May 25 Facebook open platform to developers Facebook Groups in Business Investigation 2007 2008 May-September October- November December 1- February 21 Feb 23- Gather Participants, Track Group Activity & Network & Convenors Assemble Develop Tracking Observations Data Analysis Spreadsheet © Facebook Groups in Business Initiative 2008

Slide 5: Starting Premise “Facebook may, but also may not, become THE enterprise social networking platform, but it's here, use is growing, so we need to understand the phenomenon and learn from it.” Study Description 2008-02-08 © Facebook Groups in Business Initiative 2008

Slide 6: William L. Anderson FGIBI Co- Convener © Facebook Groups in Business Initiative 2008

Slide 7: © Facebook Groups in Business Initiative 2008

Slide 8: Activity Data Tracked Calendar Date Discussion Topics Administrators Members Wall topics Posted items Photos Events Initiatives to Promote Membership © Facebook Groups in Business Initiative 2008

Slide 9: We also wanted to know about group member ties Known Friend New Member Known Name New Face of a Friend Source Unknown © Facebook Groups in Business Initiative 2008

Slide 10: Investigation Tools Ecosystem Email Main means of group participant communications Private Wiki Stored participant information, data, reflections & industry information Private Facebook Group Posted updates. Related links 21st Century Organization A participant. Study updates posted. Facebook Group 21st Century Organization Project announced here. & Praxis101 blogs Google Docs Tried sharing activity data with investigation team members © Facebook Groups in Business Initiative 2008

Slide 11: What We Learned © Facebook Groups in Business Initiative 2008

Slide 12: Eric Edelstein Owner: o South African based retail chain, eSquared Fashion o Participating eSquared Facebook Group “Facebook can offer rewards, can result in sales, but is not an easy marketing avenue for beginners to Internet Marketing”. © Facebook Groups in Business Initiative 2008

Slide 13: Eric Edelstein Reflections Have to be active to make the Group active We changed from using Facebook Groups to Fan Clubs Better business marketing vehicle Facebook Groups have communication limits Internet Marketing learnings: FB is one channel/medium of many; need to use them all Try it. Be prepared to make mistakes Facebook opened up social networking space Internet marketing gets more exciting the more you do We’re now experimenting with Twitter © Facebook Groups in Business Initiative 2008

Slide 14: Kimberly Samaha Founder, Bordeaux Colloquium Administrator Participating Facebook Group Sustainable Energy - Innovation & Technology Facebook Researcher © Facebook Groups in Business Initiative 2008

Slide 15: Facebook Group Study: Initial Objectives • Create an on-line platform to connect ‘off-line’ members of the Bordeaux Energy Colloquium for exchanges during the year • Create outreach to ‘concerned citizens’ – a link between policy makers and consumers • Network with other energy professionals • Find interesting energy projects & technologies © Facebook Groups in Business Initiative 2008

Slide 16: Created 5 Facebook Groups • Bordeaux Energy Colloquium: closed, private – members of Colloquium only • Sustainable Energy: 3 topics, open to public, used ‘advertising’ to attract new members – Innovation & Technology – Case Studies – Universal Access • Sustainable Energy Futures: event page for a ‘virtual tradeshow’ and on-line case study competition – open to public used ‘advertising’ and word-of-mouth recruiting to attract new members © Facebook Groups in Business Initiative 2008

Slide 17: Conclusion: Off-line to On-line Results disappointing • Facebook reputation still an obstacle for professionals (college or ‘kids thing’, company blocks, privacy concerns) • Facebook limitations: not able to send business type documents only video and photos • Over half the BEC members who went on-line are inactive • One action initiative launched: Hold an on-line case study competition on the event page. Over half of on-line members joined the group. • Most members are interested to hear status but slow to join or facilitate action © Facebook Groups in Business Initiative 2008

Slide 18: Conclusion: On-line Topic Groups Smaller groups but more committed members • Most topic group members are early adopters: found group through searches; involved in the energy industry or sustainability movement – 78% found group vs. 22% through friends – 92% of IT group became facebook ‘friends’ – 35% of group members are ‘very active’ – Majority of topic group members also joined the Event group © Facebook Groups in Business Initiative 2008

Slide 19: Conclusions: On-line Event Group Word-of-mouth works • Active recruiting is KEY to growth – Averaged 70 new members per week – 44% of member growth from recruiters – 33% from the top 5 recruiters – 16% from one recruiter • Friends of Friends – 47% of new members found group through friends – See others join through Facebook ‘newsfeed’ and ‘groups others have joined’ pages • Weak Links are harder to maintain – Group drop out rates averaged ~ 5% across the 4 active groups – 55% of drop outs were friend of friend invites © Facebook Groups in Business Initiative 2008

Slide 20: Important Strategies to be Learned No easy way: High time level involvement required • Find other ‘like-minded’ individuals and ask for help • Actively facilitate group and group page – Members don’t check group pages often – Members do respond to ‘message all members’ emails • Weave a larger network – Reach into non-affiliated groups: establish presence and ‘friends’ to create ‘weak links’ – Strengthen weak links around common areas of interest among other groups using surveys, links, etc. © Facebook Groups in Business Initiative 2008

Slide 21: Conclusions: On-line case study competition • Facebook is about joining more than action • Facebook creates a unique way to diffuse influence; but few advocate or invite “all” to join their activities • Facebook groups: more like mailing lists than places where people actively participate • Group emails regarded as ‘advertising’ or ‘spam’ and often go unread • Recruiting others to join the group was successful: > 60% of the group was invited by a friend • Evidence of the “Influentials theory”: top 5 recruiters accounted for 30% of the group membership © Facebook Groups in Business Initiative 2008

Slide 22: Conclusions: Business expectations • Facebook groups are like mailing lists: ~ 15% of total membership participated in the contest • Facebook limit on messaging groups is 1200: this is a BIG limitation • 1-click campaigns can bring in big numbers but action or education does not go deeper than the click • Outreach can be successful: create a few good connections to new advocates and new channels for communication • Viral growth is not the norm in Facebook: slowly expanding mission or cause by reaching a reasonable number of new people is achievable © Facebook Groups in Business Initiative 2008

Slide 23: Sustainable Energy - Innovation & Technology Facebook Group Bordeaux Energy Colloquium Facebook Group Members Discussion Topics Posted items 140 120 100 80 60 40 20 0 1 2 3 4 5 6 7 8 9 10 11 12 Group Day Number 3 in member growth, up 124% Analysis by Accession Media © Facebook Groups in Business Initiative 2008

Slide 24: Francois Gossieaux Founder, Beeline Labs Administrator Largest Participating Facebook Group © Facebook Groups in Business Initiative 2008

Slide 25: The Marketing 2.0 Group: Lessons to be learned You can tap the benefits of communities once only reserved for companies with deep pockets Community development and management has to be considered a real investment Pay attention to what you name your group © Facebook Groups in Business Initiative 2008

Slide 26: Patti Anklam FGIBI Contributors Network Analysis © Facebook Groups in Business Initiative 2008

Slide 27: Network Forming Around the Study • A simple social network analysis (SNA) • Each participant asked: – Which other participants they personally knew prior to the study – Which participants they interacted with during the study Dave Duarte Eric Edelstein Francois Gossieaux Victoria Axelrod William Anderson Adam Kovitz Ray Cha Jenny Ambrozek Kimberly Samaha Niki Lambropoulos Jenni Beattie © Facebook Groups in Business Initiative 2008

Slide 28: Before and After – Full Group Eric Edelstein Eric Edelstein Dave Duarte Dave Duarte Francois Gossieaux Francois Gossieaux Victoria Axelrod Victoria Axelrod William Anderson Adam Kovitz William Anderson Adam Kovitz Ray Cha Ray Cha Jenny Ambrozek Kimberly Samaha Jenny Ambrozek Kimberly Samaha Niki Lambropoulos Niki Lambropoulos Jenni Beattie Jenni Beattie The role that the researchers play in connecting the people in the network is revealed. Network analysis by Patti Anklam © Facebook Groups in Business Initiative 2008

Slide 29: Victoria G. Axelrod FGIBI Co- Convener © Facebook Groups in Business Initiative 2008

Slide 30: Victoria’s Caveats 1. Related research 2. Tool transience 3. Beyond the face value of the numbers © Facebook Groups in Business Initiative 2008

Slide 31: Facebook Today: What’s Next? Source: www.alexa.com © Facebook Groups in Business Initiative 2008

Slide 32: Alexa.com: Facebook vs. Twitter Reach for Facebook.com: Percent of global Internet users who visit this site Yesterday 1 wk. Avg. 3 mos. Avg. 3 mos. Change 8.72% 8.799% 8.113% 23% Reach for Twitter.com: Percent of global Internet users who visit this site Yesterday 1 wk. Avg. 3 mos. Avg. 3 mos. Change 0.079% 0.0849% 0.0918% 133% Extracted 2008-06-23 Source: www.alexa.com © Facebook Groups in Business Initiative 2008

Slide 33: Participating Facebook Groups Membership Growth Group Start End Change % Huddlemind Labs 59 315 256 434% Hellenes Educators 18 59 41 228% Bordeaux 55 123 68 124% Colloquium London Jewish 235 427 192 82% Cultural Centre Marketing 2.0 3986 6497 2511 63% Network PR 41 67 26 63% 21st Century 48 71 23 48% Organizations RNIA Supporters 245 320 75 31% eSquared 429 555 126 29% CScout 29 30 1 3% © Facebook Groups in Business Initiative 2008

Slide 34: Over to You- Your Questions Please Discussion © Facebook Groups in Business Initiative 2008

Slide 35: Facebook Groups in Business Investigation – The Bottom Line Eric Edelstein Dave Duarte Francois Gossieaux Victoria Axelrod William Anderson Adam Kovitz Ray Cha Jenny Ambrozek Kimberly Samaha Niki Lambropoulos Jenni Beattie © Facebook Groups in Business Initiative 2008

Slide 36: “Should your Business be Friends with Facebook?” Perhaps … Context  Business purpose determines focus  The technology extends our reach  Must meet stakeholders where they are  Demands design, resources & active facilitation © Facebook Groups in Business Initiative 2008

Slide 37: Continue the Conversation Visit TheAppGap Blog www.theappgap.com Webinar audio is available here: http://www.theappgap.com/recording-of-facebook-for-business-webinar Join the 21stCenturyOrganization Facebook Group http://www.facebook.com/group.php?gid=2436782733 Email jenny at sageway.com © Facebook Groups in Business Initiative 2008