Social media findings


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Insights and findings on Social Media with hign-end retail brands in focus.

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Social media findings

  1. 1. SOCIAL MEDIA FINDINGSClaus Handberg –<br />X<br />= ?<br />BRAND<br />
  2. 2. Reasons why?…why should luxury brands go digital?<br />Web Promotion Platform<br />Premium, affluent consumers are online!<br />US Affluent Internet users will grow from 43.7 million in 2006<br />To 57.1 million in 2011 (source eMarketer report 2007)<br />27% of affluents did participate in social networking in 2007 <br />– went up to 60% in 2008 (source Luxury Institute)<br />On avg. they have memberships in 2,8 social networks <br />and 110 connections on avg.<br />Going beyond exclusivity to reach aspirers creating “lust for the <br />product” and “one day I’ll be able to afford that” feelings<br />96% of Gen. Y (Forbes calls “Next generation of luxury consumers) <br />are using social media<br />Remember - setting up a Facebook fan-page is free<br />…. But doing active and effective Social Media marketing isn’t<br />“Social Media platforms give brands the opportunity to be a leader of discussion about their products online. Placing a brand in the middle of two-way communication with their consumers, builds meaningful relationships that fosters loyalty and promote advocacy.”<br />Julia Roy, Luxury Brands and Social Media<br />
  3. 3. Web Promotion Platform<br />Today, Internet is much more than an (SEO) optimized <br />website<br />The social media cloud is a broad spectrum of medias (see figure)<br />Content and substance rules - be there, and be relevant!<br />70% of marketers said they plan to increase social media spending <br />in 2010 (ExacTarget survey)<br />The key is to draw fans into a deeper experience with your brand <br />and a community that matches their current or aspired lifestyle <br />and embraces long-term brand related social identities.<br />Benefits are:<br /><ul><li>Increased daily mentions
  4. 4. Positive brand sentiment
  5. 5. Increased website & retail traffic
  6. 6. Increased consumer awareness
  7. 7. Increased interaction with in-store promotions and events
  8. 8. Real-time consumer feedback for insight and research</li></ul>Web 2.0…a change in the virtual landscape<br /> are conversations<br />“the art of listening, learning and sharing”<br />Social Media genres<br />
  9. 9. Social Media……Facebook and others <br />Social Media element:<br />Facebook has become a dominant<br />… and accepted channel in the business environment.<br />Of the 15 most popular pages – three belong to corporations: <br />Coca-Cola, Starbucks and Skittles<br />“Fans” spend on avg. 6 Facebook hours a month – (source Nielsen)<br />Facebook tools translate into 20 languages, ensuring global usability<br />63% of Facebook users live outside the US.<br />Extensive growth continues – and women over 55 are the fastest <br />growing demographic.<br />Targeted Advertising programs are available for commercial use on <br />Facebook. Corporations can target ads to relevant personal profiles.<br />Facebook boasts that it runs campaigns from 83 of the <br />top 100 brands.<br />- US<br />
  10. 10. Luxury brands in social media:…what are they doing<br />Social Media element:<br />Gucci<br />Stats: 568.000 fans - each update receives over 200 interactions<br />Continually updating page with content: text, video, photos.<br />Mercedes Benz:<br />Stats: 248.000 fans <br />Also established Generation Benz, an invitation only branded social <br />network where consumers can give feedback on vehicles<br />Coach:<br />Stats: 580.000 fans<br />Contest where participants designed, shared and rated Coach bag designs. The winner was sold as a limited edition item.<br />Louis Vuitton:<br />Stats: 836.000 fans<br />Ferrari:<br />Stats: 224.000 fans<br />Brands Facebook profile photo - February 2010<br />
  11. 11. Social Media……the story of growth in DK<br />Social Media element:<br />Facebook – the DK growth story…. <br />Started in Denmark august 2006.<br />2007: between 300.000 – 400.000 users<br />2008: between 600.000 – 700.000 users<br />2009 January: 1.861.480 users<br />2010 February: 2.299.800 users<br />Source: JP/Politikkens Hus<br />
  12. 12. Social Media……the others!<br />Social Media element:<br />Twitter:<br />Has signed social search deals with Google and MS. Twitter results <br />will now be featured on the first page of Google, in similar fashion <br />to Google news results What people say about our brand on Twitter <br />will become VERY important<br /> is globally the 12th most popular website <br />(source: Alexa Top 500 Global Sites)<br />MySpace:<br />Dedicated music & video network, being seen as fading but still <br />holds a dedicated crowd of fans.<br />Can be linked together with Twitter to co-post on both network <br />in one go.<br />Other to be considered:<br />,,,,, <br />, etc…<br />
  13. 13. Social Media……KPI’s and measurement<br />Social Media element:<br />A new set of intelligence & measurement<br />Monitor the Social Media Buzz – through Market Intelligence setup<br />Reputation in social media as a KPI of success<br />Tool for changing our brand perception through two-way dialogue <br />with our target audience<br />Work as a powerful research tool <br />Listen to understand customer needs<br />Putting out questions to “friends” and “followers”<br />
  14. 14. Case for consideration……even a brand like Old Spice (P&G) can have an effect with social media…<br />“Turn up your man smell”<br />Social Media element:<br />October 2009<br />The Procter & Gamble brand was running an ad on Facebook<br />hoping to increase its 55.000 strong Facebook fan base.<br />After 2 weeks, Old Spice boasted nearly 175.000 fans.<br />Targeted advertising on Facebook was supported by YouTube<br />Video commercials<br />Today (February 2010) Old Spice has 427.200 fans.<br /><br />