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Big Brands & Facebook:  Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrest...
Theme Facebook marketing requires communicating, not advertising
Agenda <ul><li>What are the demographics of Facebook users? </li></ul><ul><li>What are some best practices for brand marke...
Facebook’s demographics <ul><li>60 million active users projected by end of 2007 </li></ul><ul><ul><li>Currently at 44 mil...
A drill down of Facebook’s US demographics <ul><li>56.3% female </li></ul><ul><li>58.4% have some college education </li><...
Facebook’s international age distribution Source: Facebook internal data, September 2007
Facebook users have “aged” over the past year Source: Nielsen//NetRatings Note: These number differ significantly from Fac...
Facebook demographics best practices <ul><li>Anticipate that the demographics will change rapidly over the next 12-18 mont...
Agenda <ul><li>What are the demographics of Facebook users? </li></ul><ul><li>What are some best practices for brand marke...
Microsoft handles IAB standard ad sales
Targeting beyond demos
Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories
Facebook Flyers give self-service control
 
Theme Facebook marketing requires communicating, not advertising
Sponsored Groups <ul><li>Group page with customized navigation, look & feel </li></ul><ul><li>Usually includes a significa...
Jeep treats social networks like another channel
Misses a chance to create a unique community
Victoria’s Secret also looks like an ad…
But the community is highly engaged
Crest White Strips case study Targeted 20 colleges Offered free concerts and movie screenings Live chat facilitate interac...
Ernst & Young engages in a conversation to recruit college students
Sponsored Groups best practices <ul><li>Understand how similar groups meet/don’t meet needs already </li></ul><ul><li>Crea...
Why applications on Facebook are different
Because I know Dave, his review has context
My colleague Peter Kim shares travel
Application best practices <ul><li>Create useful apps that model what friends do naturally – share info, experiences, and ...
Recommendations <ul><li>Facebook marketing is about communicating, not advertising – so act appropriately </li></ul><ul><l...
Wal-Mart keeps trying – kudos for effort
Thank you Charlene Li +1 650/581-3833 [email_address] www.forrester.com blogs.forrester.com/charleneli
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  1. 2. Big Brands & Facebook: Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrester Research October 8, 2007
  2. 3. Theme Facebook marketing requires communicating, not advertising
  3. 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>
  4. 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
  5. 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
  6. 7. Facebook’s international age distribution Source: Facebook internal data, September 2007
  7. 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
  8. 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>
  9. 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>
  10. 11. Microsoft handles IAB standard ad sales
  11. 12. Targeting beyond demos
  12. 13. Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories
  13. 14. Facebook Flyers give self-service control
  14. 16. Theme Facebook marketing requires communicating, not advertising
  15. 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>
  16. 18. Jeep treats social networks like another channel
  17. 19. Misses a chance to create a unique community
  18. 20. Victoria’s Secret also looks like an ad…
  19. 21. But the community is highly engaged
  20. 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
  21. 23. Ernst & Young engages in a conversation to recruit college students
  22. 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>
  23. 25. Why applications on Facebook are different
  24. 26. Because I know Dave, his review has context
  25. 27. My colleague Peter Kim shares travel
  26. 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>
  27. 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>
  28. 30. Wal-Mart keeps trying – kudos for effort
  29. 31. Thank you Charlene Li +1 650/581-3833 [email_address] www.forrester.com blogs.forrester.com/charleneli

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