Study- Only 1% of Facebook 'Fans' Engage With Brands | Digital - Advertising Age.pdf
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Study- Only 1% of Facebook 'Fans' Engage With Brands | Digital - Advertising Age.pdf Study- Only 1% of Facebook 'Fans' Engage With Brands | Digital - Advertising Age.pdf Document Transcript

  • Study: Only 1% of Facebook Fans Engage With Brands | Digita... Ad & Marketing News Register Now | Login Stay on top of the news and stay ahead of the Search Advertising Age game— sign up for e-mail newsletters now! Advanced Search HOME THIS WEEKS ISSUE MOBILE APP EVENTS WEBCASTS BRANDED CONTENT WHITE PAPERS POWER 150 HELP! DIGITAL Study: Only 1% of Facebook Fans Engage With Brands Not Many Fans Are Creating Content, But That Might Not Be a Bad Thing By: Matthew Creamer Published: January 27, 2012 For a few years now, brands have been touting frothy Facebook "like" numbers as evidence of their social-media acumen. But how many of those fans are actually bothering to take part in conversation with brands? Not too many, as it turns out. BIG IN PRINT Slightly more than 1% of fans of the biggest brands on Facebook are actually engaging with the The Agency A-List brands, according to a study from the Ehrenberg-Bass Institute, an Australia-based marketing think tank that counts Procter & Gamble , Coca-Cola and other major advertisers as its supporters. To get to these findings, the researchers used one of Facebooks own metrics, People Talking About This, the awkwardly-named running count of likes, posts, comments, tags, shares and other ways a user of the social network can interact with branded pages. It was unveiled last fall as a way of giving advertisers a sharper look at at the level of activity on their pages. Researchers for the institute looked at this metric as a proportion of overall fan growth of the top Agency of the Year McGarryBowen Proves Solid 200 brands on Facebook over a six-week period back in October and they found the percentage of and Reliable Beat Fast and Furious People Talking About This to overall fans to be 1.3%. If you subtract new likes, which only requires Ad Ages Agency A-List Issue: Ten Agencies to Watch in 2012 a click and in the minds of the researchers are akin to TV ratings, and isolate for more engaged Droga5 Is Creativitys Agency of the Year forms of interaction, youre left within an even smaller number: 0.45%. That means less than half a The Creativity A-List: The 10 Most Creative Shops of the Year percent of people who identify themselves as like a brand actually bother to create any content Many Brands Bid for Product Placement on around it. Modern Family, but So Few Make It Foxs Touch Inks Historic Global Deal With Unilever You might assume these are damning numbers. But this isnt necessarily the case. "I dont think its a bad thing," said Karen Nelson-Field, senior research associate for Ad Age Whitepapers Ehrenberg-Bass Institute who describes herself as a "Facebook advocate." "People need to understand what it can do for a brand and what it cant do. Facebook doesnt really differ from mass media. Its great to get decent reach, but to change the way people interact with a brand overnight Mobile Marketing Volume 4: M-Commerce is just unrealistic." In the background here is the thinking of Andrew Ehrenberg, the late mathematician who was highly skeptical of conventional marketing wisdom. In dense statistically-oriented papers, he cast doubt on concepts such as brand loyalty and was never sold on the persuasive power of advertising. Now his disciples advocate achieving broad reach through mass media. Brand growth, they maintain, is attained not by reaching a few loyal fans but a larger number of light and medium buyers. In this understanding of the marketing and media worlds, social is just another media channel useful for its reach rather than any notion of engagement. This research jibes with that thinking, as does a separate study from Ms. Nelson-Field looking at the distribution of buying behavior among Facebook fan bases. In that study, she used web-based consumer panels to examine the behavior of Facebook fans of two unnamed repeat-purchased brands, in the chocolate and soft-drink categories. The key finding was a much greater occurrence Is it a phone, a wallet or a mall? Mobile1 of 4 1/27/12 12:54 PM
  • Study: Only 1% of Facebook Fans Engage With Brands | Digita... of heavy buyers in the Facebook population than in a more general population of customers. The phones and tablets make it easier for study also found that purchase frequency didnt increase after someone became a fan. consumers to research and buy. Learn whos already buying, how consume... More In other words, Facebook fan bases skew toward heavy buyers rather than the more casual shoppers that a brands needs to reach in order to grow. Again, unless youre someone who believes marketing on Facebook alone constitutes a full strategy or youre lining up for the inevitable CREATIVITY PICKS Check-In With a Hip Thrust With the Facebook IPO, this isnt all bad news. Facebook does provide good reach and its audience of loyal LikeBelt Prototype fans is good for market research and word-of-mouth advocacy. If theres an overall caution, its against, in the words of Ms. Nelson-Field, "putting a disproportionate amount of effort into engagement and strategies to get people to talk about a brand, when you should be spending more time getting more light buyers." Request a Reprint of this article. "Liking" things gets a real-world spin with this prototype out of Pittsburgh-based Deeplocal. The "Like Belt" uses near-field communication COMMENTS RSS feed of comments technology to register "likes" when you are walking around. You just have to do a bit of thrusting. Matthew Wurst New York, NY Unfortunately this study only incorporates the public People Talking about This metric, which is only one set of unique users who may be interacting with brands. # 1 - Jan 27, 2012 11:40 AM What PTAT does not incorporate is the number of individuals who have clicked on a link, viewed a photo or video or visited the brand page. While the creation of "stories," which is what PTAT measures, is important for second and even degree reach, to make a definitive statement that only 1% of fans are engaging in with brands is inaccurate and demonstrates a lack of understanding of Facebook metrics. Reply 0 +3 Bob Clark Chester Springs, PA Interesting finding - looks like social for brands is just another form of media - less about conversations # 2 - Jan 27, 2012 11:40 AM Bob Reply 0 WHAT YOU MIGHT HAVE MISSED How Volkswagen Conducted Its Ron Schott Canine Chorus Seattle, WA That was my first thought as well, Matthew. Passalong isnt necessarily the best way to measure interaction. Traditional advertising metrics dont point to the # 3 - Jan 27, 2012 11:57 AM number of times a person sees a television ad and then goes to a friend with "oh man, I just saw this ad, you have to hear about it." No, they focus on impressions of brand messaging - something thats completely being missed here if youre only looking at People Talking About numbers. Reply 0 +1 Anna Choi Blacksburg, VA The way "f-commerce" is impacting brands is a transitional stage but this finding is a start to how brands will slowly but surely become a part of a consumers daily The Making of The Bark Side: Ad Age Talks to the # 4 - Jan 27, 2012 11:58 AM People Behind the Pup-Filled Follow-up to The life. Its great to look into the numbers and their meanings while at the same time attempting to increase them. Force. Reply 0 Want your agency included in Ad Ages Agency Report 2012? The report will cover more than 900 agencies. If Joel Rubinson your agency didnt receive a questionnaire, email huntington, NY I first published results like this in a blog 8 months ago where I showed that a tiny percent of people who like a fan page ever go back to it. # 5 - Jan 27, 2012 12:11 PM Evidence is here: ANA Annual Meeting 2011 Advice to marketers from Facebooks COO and When you count up impressions in the news feed and compare that to owned other insights from this years conference. media, it turns out that Facebook has nothing to do with engagement which actually comes from owned media. It delivers impressions but only 5% or so are on MOST READ Facebook at the time the update hits their stream. JC Penney Reinvents Department-Store Retailing Reply 0 +1 Google+ Prepares to Revolutionize the Local Landscape GE Study Proves Consumers Respond More to Kern Lewis Shared Content Than to Paid Placements Castro Valley, CA I think these findings (Joels linked article, too) are valid criticisms. So, we all just Why Marketers Are Learning to Embrace have to manage the Facebook opportunity properly, and test ways to extract value Sustainability Through Social Media # 6 - Jan 27, 2012 12:38 PM from its massive database of users. Here is my latest example: Turns Out Consumers Really Do Care About the I have a client, SBIG, that caters to a very narrow target market: Amateur Data Youre Collecting astronomers. Out of 800 million FB users, less than 1 million have flagged themselves as fans of astronomy. So, FB has found some of the needles in our MOST COMMENTED haystack, and having a company page gives me access to them via an ad MOST EMAILED2 of 4 1/27/12 12:54 PM
  • Study: Only 1% of Facebook Fans Engage With Brands | Digita... campaign. RELATED CONTENT Second, we need to build "likes" for selfish reasons: The casual visitor to our page must be impressed. We just started our page, and we are anxious to get over 1000 Sheryl Sandberg Touts Facebooks Role in likes so that visitors dont say "geez, not many people have bothered to like SBIG. Stimulating Economy Im not sticking around either!" Facebook Branches Out Past Likes with 60 New Third, we have a very loyal fan base, and some of them (not all by any stretch) are Lifestyle Apps on Facebook. We have started to interact with them in meaningful ways, and hope Facebook Looks to Rebrand News Feed Ads to make our company page a place for them to share the wonderful images they have taken with our cameras. This is Your Facebook Timeline on Drugs Facebook will never be the central piece of our marketing mix, but it does appear More Than Just Numbers: The Brands With the to have value in helping to build and maintain our loyal customer base, even if Top Relationship Quality on Facebook each of our Likers (can I still say "fans"?) drops by only occasionally. Reply 0 The Ad Age Mobile App YOUR COMMENTS: Ad Age reserves the right to moderate, delete and/or republish comments. Maximum length of comments is 500 words. Marketing News, Intelligence & Conversation: Wherever You Go. Available on IOS, Android, WP7 and Blackberry. FROM THE DATACENTER Mobile Marketing and Online Video Includes mobile trends, top video sites, ad networks and more. Type the two words: 100 Leading Media Companies Ad Ages 31st annual ranking of the 100 Leading Media Companies from A&E to Zynga. LOGIN To submit comments you must be registered. Please login or register now. User Name Password Post Comment News from our Ad Age Partners Suzuki goes to the dogs with “What major marketing The anti-Kodak: Eastman Go big blue! City businesses Economy picked up pace as Super Bowl ad trends are you seeing for Chemical cheer Giants win 2011 ended Cadillac to shine early 2012?” SEC to step up scrutiny of Résumé Review: Cory J. Too little, too late? Factory spotlight on ATS in Super Close-Up with David Lau, private equity firms Samuels jobs making comeback Bowl return CMO-COO, Jefferson Romneys elusive net worth Marketers hope for Giants For Super Bowl ads, its the Share of U.S. buyers shying National Life Insurance calculation vs. Patriots in Super Bowl year of social media away from imports rises, CDW campaign heads North Starbucks CEO Schultz Online marketer Yodle Facebook sues to stop J.D. Power says Direct and digital outlook for made $65 million expanding into Canada likejacking scammers Tiny Chevy Sonic to get big 2012 cautiously optimistic Super Bowl pitch Resources Services Columns News Home TalentWorks Help Center Rance Crain Agency News This Weeks Issue Ad Age Events Subscriptions Al Ries CMO Strategy DataCenter White Papers & Marketing Media Kit The Media Guy DataCenter3 of 4 1/27/12 12:54 PM
  • Study: Only 1% of Facebook Fans Engage With Brands | Digita... Jobs Information List Rental Bob Garfield Digital Events 360 Multiplatform Media Download Current Edition Guest Columnists Hispanic Marketing Print Archive Blogs & Columnists More from Ad Age: Creativity | AdAge DataCenter | AdAgeChina | AdAge on Campus Copyright © 1994-2013 Crain Communications | Privacy Statement | Contact Us4 of 4 1/27/12 12:54 PM