- Facebook currently has over 44 million active users, half of whom return daily. The demographics of Facebook users are shifting to include more users aged 35+ and those outside of college. - Successful brand marketing on Facebook requires communicating rather than traditional advertising. Case studies found targeted campaigns, engaging communities, and conversations were more effective than direct advertising. - The best practices for Facebook marketing are to anticipate changing demographics, create unique and engaging experiences on sponsored pages/groups, actively participate in discussions, and make applications that model natural friend sharing behaviors.

2. Big Brands & Facebook: Demographics, Case Studies & Best Practices Charlene Li Vice President & Principal Analyst Forrester Research October 8, 2007

3. Theme Facebook marketing requires communicating, not advertising

4. Agenda What are the demographics of Facebook users? What are some best practices for brand marketing on Facebook?

5. Facebook’s demographics 60 million active users projected by end of 2007 Currently at 44 million active users Half of current users return daily Facebook also projects that 75% of worldwide users will be outside of college Source: Facebook

6. A drill down of Facebook’s US demographics 56.3% female 58.4% have some college education 14% are non-white 34% work as professionals, executives, sales, education, or technical 12% are full time students 12% have children under 16 Source: Nielsen//NetRatings

7. Facebook’s international age distribution Source: Facebook internal data, September 2007

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. Facebook demographics best practices Anticipate that the demographics will change rapidly over the next 12-18 months Adjust your marketing plans and plan for flexibility Beware of relying on what worked yesterday, especially with fickle college students and newbie 35+ users

10. Agenda What are the demographics of Facebook users? What are some best practices for brand marketing on Facebook?

11. Microsoft handles IAB standard ad sales

12. Targeting beyond demos

13. Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories

14. Facebook Flyers give self-service control

16. Theme Facebook marketing requires communicating, not advertising

17. Sponsored Groups Group page with customized navigation, look & feel Usually includes a significant media buy to drive traffic to the sponsored group page Display ads and flyers Newsfeed targeting Costs usually in the six figures for a three month engagement Note that any company can set up a group for free

18. Jeep treats social networks like another channel

19. Misses a chance to create a unique community

20. Victoria’s Secret also looks like an ad…

21. But the community is highly engaged

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

23. Ernst & Young engages in a conversation to recruit college students

24. Sponsored Groups best practices Understand how similar groups meet/don’t meet needs already Create a unique experience that Enable discussion board, The Wall, photos, etc. Read and respond to comments Be transparent about your role and perspective

25. Why applications on Facebook are different

26. Because I know Dave, his review has context

27. My colleague Peter Kim shares travel

28. Application best practices Create useful apps that model what friends do naturally – share info, experiences, and laughs Plan out how to make your app viral Get feedback from users once you launch

29. Recommendations Facebook marketing is about communicating, not advertising – so act appropriately Be a part of the Facebook experience More like content than advertising Tap into the reasons why friends share Listen, learn, and be ready to make mistakes

30. Wal-Mart keeps trying – kudos for effort

31. Thank you Charlene Li +1 650/581-3833 [email_address] www.forrester.com blogs.forrester.com/charleneli