Big Brands & Facebook


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Big Brands & Facebook:

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  • Some things jump out at me. First, AM are less likely to be Creators than the average adult. No surprise here – AM are pretty busy and the mental energy (not to mention the time) needed to sit and create social media just isn’t there in as many people in this segment. They also tend not to be Joiners, partly because the existing social networks today don’t have a lot to offer them. So there’s some possibility that they might be willing to do this, especially when a quarter of them already do it. Now look at the Spectator and Critics areas – these index higher. So reading content and building on it is a natural for AM. This now begins to inform an objective and strategy for this group. Josh will talk about the different types of objectives tomorrow morning, but for now, let’s assume that the objective is to provide support for the busy AM.
  • Microsoft CPM - they sell all IAB ad units by digital solutions people. Outside, we sell everything. Top 300-500 brands in the market. Lots of responses. MSFT became a great channel. Flyer - self-service display ads - demographic targeting. Can also do keyword targeting into user profiles. e.g. interests, affiliations. Basic was to Profile targeting No behavioral targeting - demograhic targeting is mostly inaccurate. No incentive to provide good demos. Demos are 60% accurate. But when the user uses 200 words to define their brands, it's good data. Information is accurate because you're providing it to your friends. Also updating their profiles -- accurate. Can target well. More powerful than demographic or behavioral data could be.
  • Big Brands & Facebook

    1. 1.
    2. 2. Big Brands & Facebook: Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrester Research October 8, 2007
    3. 3. Theme Facebook marketing requires communicating, not advertising
    4. 4. Agenda <ul><li>What are the demographics of Facebook users? </li></ul><ul><li>What are some best practices for brand marketing on Facebook? </li></ul>
    5. 5. Facebook’s demographics <ul><li>60 million active users projected by end of 2007 </li></ul><ul><ul><li>Currently at 44 million active users </li></ul></ul><ul><ul><li>Half of current users return daily </li></ul></ul><ul><li>Facebook also projects that 75% of worldwide users will be outside of college </li></ul>Source: Facebook
    6. 6. A drill down of Facebook’s US demographics <ul><li>56.3% female </li></ul><ul><li>58.4% have some college education </li></ul><ul><li>14% are non-white </li></ul><ul><li>34% work as professionals, executives, sales, education, or technical </li></ul><ul><ul><li>12% are full time students </li></ul></ul><ul><li>12% have children under 16 </li></ul>Source: Nielsen//NetRatings
    7. 7. Facebook’s international age distribution Source: Facebook internal data, September 2007
    8. 8. Facebook users have “aged” over the past year 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 Percent of US Facebook users in each age group
    9. 9. Facebook demographics best practices <ul><li>Anticipate that the demographics will change rapidly over the next 12-18 months </li></ul><ul><li>Adjust your marketing plans and plan for flexibility </li></ul><ul><li>Beware of relying on what worked yesterday, especially with fickle college students and newbie 35+ users </li></ul>
    10. 10. Agenda <ul><li>What are the demographics of Facebook users? </li></ul><ul><li>What are some best practices for brand marketing on Facebook? </li></ul>
    11. 11. Microsoft handles IAB standard ad sales
    12. 12. Targeting beyond demos
    13. 13. Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories
    14. 14. Facebook Flyers give self-service control
    15. 16. Theme Facebook marketing requires communicating, not advertising
    16. 17. Sponsored Groups <ul><li>Group page with customized navigation, look & feel </li></ul><ul><li>Usually includes a significant media buy to drive traffic to the sponsored group page </li></ul><ul><ul><li>Display ads and flyers </li></ul></ul><ul><ul><li>Newsfeed targeting </li></ul></ul><ul><li>Costs usually in the six figures for a three month engagement </li></ul><ul><li>Note that any company can set up a group for free </li></ul>
    17. 18. Jeep treats social networks like another channel
    18. 19. Misses a chance to create a unique community
    19. 20. Victoria’s Secret also looks like an ad…
    20. 21. But the community is highly engaged
    21. 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. 23. Ernst & Young engages in a conversation to recruit college students
    23. 24. Sponsored Groups best practices <ul><li>Understand how similar groups meet/don’t meet needs already </li></ul><ul><li>Create a unique experience that </li></ul><ul><li>Enable discussion board, The Wall, photos, etc. </li></ul><ul><li>Read and respond to comments </li></ul><ul><li>Be transparent about your role and perspective </li></ul>
    24. 25. Why applications on Facebook are different
    25. 26. Because I know Dave, his review has context
    26. 27. My colleague Peter Kim shares travel
    27. 28. Application best practices <ul><li>Create useful apps that model what friends do naturally – share info, experiences, and laughs </li></ul><ul><li>Plan out how to make your app viral </li></ul><ul><li>Get feedback from users once you launch </li></ul>
    28. 29. Recommendations <ul><li>Facebook marketing is about communicating, not advertising – so act appropriately </li></ul><ul><li>Be a part of the Facebook experience </li></ul><ul><ul><li>More like content than advertising </li></ul></ul><ul><li>Tap into the reasons why friends share </li></ul><ul><li>Listen, learn, and be ready to make mistakes </li></ul>
    29. 30. Wal-Mart keeps trying – kudos for effort
    30. 31. Thank you Charlene Li +1 650/581-3833 [email_address]