Facebook, Brands and TV Preview Next Conference 2010 Berlin

NEXT10 Preview Facebook, Brands and TV in Germany Next10 Berlin, 10.05.2010 reported by supported by NEXT10 Preview: Brands, TV and Facebook. 1

The typical discussion is often ideology driven. vs. reported by supported by NEXT10 Preview: Brands, TV and Facebook. 2

The only thing which is important: Media usage is fundamentally changing. 73% use TV and internet at least once per week at the same time & 49% use social networks while watching TV Source: Microsoft Advertising Media Meshing 2010 reported by supported by NEXT10 Preview: Brands, TV and Facebook. 3

And so, the game is changing. But the ultimate objective will always be: To create brand preference! Source: http://www.comparethemeerkat.com/ reported by supported by NEXT10 Preview: Brands, TV and Facebook. 4

We wanted to know: What do the big “TV brands” actually do on Facebook (as biggest social network)? reported by supported by NEXT10 Preview: Brands, TV and Facebook. 5

What happens in an average week on big brands‘ Facebook pages? Brands with official German Facebook page from the list of the top TV spender Q1/10 (excluding media brands): Monday, 12.04.2010 00:00  1&1 Axe Bitburger BMW .................................................. Burger King Coca-Cola Deutsche Telekom .................................................. Dove MAN+CARE Douglas Dr. Oetker Ofenfrisch .................................................. Dr. Oetker Steinofen FIAT Gillette Venus Hornbach .................................................. ING-DiBa Jever KiK Lindt .................................................. L‘Oréal McDonald‘s Nokia Homebase O2 Postbank  Sunday, 18.04.2010 23:59. Syoss Targobank Vodafone reported by supported by NEXT10 Preview: Brands, TV and Facebook. 6

Here is what happens in an average week on big brands‘ Facebook pages! Ø 3.578 fans/likers per brand +114 fans/likers = + 3,2% 1/3 just started in 2010 3 admin posts 3 admin comments 3/5 promote Facebook link on their website. 94 user likes = 61% 2/3 directly on their 52 user comments = 34% homepage. 8 user posts = 5% 1/4 offer to share on FB 4,3% interaction rate Interaction Rate: Proportion of all fans, which interacted with page (posts/ clikes/posts/comments)/week reported by supported by NEXT10 Preview: Brands, TV and Facebook. 7

OK. Compared to other “TV events” there is still potential in terms of fans/likers … reported by supported by NEXT10 Preview: Brands, TV and Facebook. 8

But: we all know that social media/Facebook is not about reach. So we took a closer look at what is actually happening. And we found a very interesting pattern. reported by supported by NEXT10 Preview: Brands, TV and Facebook. 9

4 strategies how „TV brands“ use Facebook. Passive Brands No strategy 1/8 Sender Brands Push strategy 1/2 Role of Facebook: Role of Facebook: Channel for all who want to know more. Option to be liked. Role of brand: Role of brand: Provide useful & interesting Be present. information. Role of user: Role of user: Be a liker. Get and like information. Host Brands Pull strategy 1/8 Friend Brands Interaction Strategy 1/4 Role of Facebook: Role of Facebook: Connect fans/likers. Way to get in touch. Role of brand: Role of brand: Give interesting input. Listen, ask, talk, connect, interact. Role of user: Role of user: Make fan statements. Valuable/appreciated partner. reported by supported by NEXT10 Preview: Brands, TV and Facebook. 10

Resulting in different interaction rates. Passive Brands No strategy 1/8 Sender Brands Push strategy 1/2 Role of Facebook: Role of Facebook: Channel for all who want to know more. Option to be liked. Role of brand: Role of brand: Interaction Provide useful & interesting Interaction Be present. Rate information. Rate Role of user: 0,3% Role of user: 3,7% Be a liker. Get and like information. Host Brands Pull strategy 1/8 Friend Brands Interaction Strategy 1/4 Role of Facebook: Role of Facebook: Way to get in touch. Connect fans/likers. Role of brand: Role of brand: Interaction Listen, ask, talk, connect, Interaction Give interesting input. Rate interact. Rate Role of user: 5,5% Role of user: 4,3% Make fan statements. Valuable/appreciated partner. Interaction Rate: Proportion of all fans, which interacted with page (posts/clikes/posts/comments)/week reported by supported by NEXT10 Preview: Brands, TV and Facebook. 11

And a different “weight” of interactions. Passive Brands No strategy 1/8 Sender Brands Push strategy 1/2 Lightweight Midweight Heavyweight 69,5% 23,0% 7,5% Interaction Interaction Rate Rate 0,3% 3,7% Host Brands Pull strategy 1/8 Friend Brands Interaction Strategy 1/4 Lightweight Midweight Heavyweight Lightweight Midweight Heavyweight 76,2% 20,2% 3,6% 43,5% 50,4% 6,0% Interaction Interaction Rate Rate 5,5% 4,3% Fans/Likes Growth Rate: Increase of fans/likers per week reported by supported by NEXT10 Preview: Brands, TV and Facebook. 12

As well as different fans/likers growth rates. Passive Brands No strategy 1/8 Sender Brands Push strategy 1/2 Quite good due to the Fans/Likers fact that brands do not Fans/Likers Growth Rate Growth Rate actively focus on winning As attractive as brand. +4,0% fans/likers. +7,7% Host Brands Pull strategy 1/8 Friend Brands Interaction Strategy 1/4 Although brands‘ activity is mainly focused on gaining Fans/Likers To interact in many Fans/Likers Growth Rate Growth Rate likers/fans, growth rate is different ways does not rather moderate. +2,2% guarantee fan growth. +2,0% Fans/Likes Growth Rate: Increase of fans/likers per week reported by supported by NEXT10 Preview: Brands, TV and Facebook. 13

Passive Brands No strategy 1/8 Interaction Fans/Likers Rate Growth Rate 0,3% +4,0% (Ø 4,3%) (Ø 3,2%) Nothing but 1/4 the KIK logo. Just for the Burger King Alpha- Griller campaign. reported by supported by NEXT10 Preview: Brands, TV and Facebook. 14

Sender Brands Push strategy 1/2 Interaction Fans/Likers Rate Growth Rate 3,7% +7,7% (Ø 4,3%) (Ø 3,2%) All about Telekom: Targobank: Interaction Rate events, ads, All about HSV 7,8% corporate (and nothing Fans/Likers issues … else) + 4,6% Interaction Rate 7,2% Fans/Likers reported by supported by + 2,4% NEXT10 Preview: Brands, TV and Facebook. 15

Product information Events Various sources of interesting Events news Offers on website Corporate information New ad reported by supported by campaign Competitions on website16 NEXT10 Preview: Brands, TV and Facebook.

Bitburger competitions Interaction Rate 5,8% Fans/Likers Interaction Rate + 1,4% 5,4% Fans/Likers + 2,4% Pictures & movies of Host Brands Pull strategy 1/8 BMW cars cars cars … Interaction Fans/Likers Rate Growth Rate 5,5% +2,2% (Ø 4,3%) (Ø 3,2%) reported by supported by NEXT10 Preview: Brands, TV and Facebook. 17

Interaction Rate 9,6% Fans/Likers + 2,2% Questions around “Fiat Autoliebe”. Ads and new cars. Friend Brands Interaction Strategy 1/4 Broad offer, a lot of input. Interaction Rate Clear focus on Interaction Fans/Likers Rate Growth Rate 21,3% dialogue. Fans/Likers 4,3% +2,0% + 3,6% (Ø 4,3%) (Ø 3,2%) reported by supported by NEXT10 Preview: Brands, TV and Facebook. 18

Key Insights. >  Big “TV brands” are not as far behind. >  More and more brands have an official page and some are quite professional. >  But, there is a broad variety in stages of development. >  To create interaction, brands need to activate. The more, the less “pull potential” a brand has. >  Users like to like, the willingness for heavyweight interaction should not be overrated – a brand must deserve it. >  Whatever a brand wants to do: Regular and relevant activities are of highest importance. No campaign-thinking! >  Besides behaving as a social being, it is also worthwhile using Facebook as a channel where people have the chance to become acquainted with a brand. And brands can learn what people like. But also a more laid-back “host strategy” can be successful. >  Overall, it is important to have an objective for Facebook activites in order to define the brand‘s own role, the role of Facebook, as well as desired likers‘ reactions – and create effect for the brand! reported by supported by NEXT10 Preview: Brands, TV and Facebook. 19

Appendix: Fan/Likers Growth and Interaction Rate. Brand Fans/ Fans/ Fan/ Fan/Likers *Joined Interaction Brand Fans/ Fans/ Fan/Likers Fan/Likers *Joined Interaction Likers Likers Likers Growth % Facebook Rate Likers Likers Growth Growth % Facebook Rate 12.03. 18.03. Growth 12.03. 18.03. 1&1 945 1.012 67 7,1 11/2009 6,5% ING-DiBa 366 375 9 2,5 10/2009 4,3% Bitburger 7.992 8.106 114 1,4 12/2009 5,8% Jever 285 285 0 0 04/2010 10,9% BMW 22.077 22.617 540 2,4 10/2009 5,4% KiK 173 173 0 0 11/2009 0% Burger King 503 510 7 1,4 08/2009 0% Lindt 2.550 2.641 91 3,6 11/2009 21,3% Coca-Cola L‘Oréal 967 1.005 38 3,9 02/2009 2,8% 272 327 55 20,2 03/2010 2,5% Deutschland Deutschland Deutsche Telekom 2.355 2.463 108 4,6 07/2009 7,8% McDonald‘s 6.096 6.626 530 8,7 02/2010 2,7% Douglas 1.993 2.285 292 14,7 12/2009 2,2% Nokia Homebase 8.052 8.415 363 4,5 08/2008 6,6% Dove MAN+CARE 299 299 0 0 03/2010 3,0% O2 4.536 4.736 200 4,4 08/2009 0,1% Dr. Oetker Ofenfrische 257 281 24 9,3 01/2010 1,1% Postbank 233 337 104 44,6 06/2009 5,6% Dr. Oetker Steinofen Syoss 1.494 1.623 129 8,6 03/2009 0,4% 549 555 6 1,1 02/2010 3,1% Tradizionale FIAT 536 548 12 2,2 10/2009 9,9% Targobank 677 693 16 2,4 02/2010 7,2% Gilette Venus 89 100 11 12,4 03/2010 0% Axe 18.980 19.054 74 0,4 04/2009 0,7 Hornbach 805 854 49 6,1 05/2009 3,2% Vodafone 9.936 10.048 112 1,1 02/2009 4,9% Total Average 3.578 3.691 114 3,2 4,3% Total Average 3.578 3.691 144 3,2 4,3% * Base: First Posting/Oldest Profile Picture Survey period 12.03.2010-18.03.10; Brands with official German Facebook page from the list of the top TV spender Q1/10 (excluding media brands) reported by supported by Interaction Rate: Proportion of all fans, which interacted with page (posts/clikes/posts/ comments)/week NEXT10 Preview: Brands, TV and Facebook. 20

Thank you! For all who want to know more: Christiane Wenhart Matthias Bonjer c@musiolmunzingersasserath.com m.bonjer@zucker-kommunikation.de reported by supported by NEXT10 Preview: Brands, TV and Facebook. 21

Facebook, Brands and TV Preview Next Conference 2010 Berlin

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