Facebook and brands

Octobre 2010

Why a study on Facebook and brands now?

­ !"#$ a social phenomenon­ It accelerates change­ It challenges the %&'()#$ place­ It challenges organisations!t $!s &'(i*i+,!s

!""members

= THE social network

2004 2006 2008 2010th! +!.innin.

01,! apps

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= their vision

Give people the power to share and make the world more open and connected

« Engineers by day, sociologists %* (,-."/ »

M

100M

200M

300M

400M

500M

600M

2007

2008

2009

2010

500 million+users

Source: Facebook internal data, August 2010

= an incredible growth

= 0o&l)#$ 3rd largest country

surpasses Google in the US

As for May 2010…

138M 18M27M

9.5M

16M

7M

Google

Yahoo!

Facebook

MSN/Bing

YouTube

Amazon

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er P

erso

n

Source: US Nielsen NetRatings, Jan ’10; Top 20 ad supported sites home/work

= high engagement

= a huge active audience

= friends and advocacy

= a cultural phenomenon

=a business opportunity

> 13,7 M fans

> 11,8 M fans

= a business opportunity

=a high mobile potential

= geolocalised marketing

= social pluggings

= webstores

CrowdsourcingSocial Business

Localisation based CRM

Digital inspires new marketing strategies

Brand Utility

Branded content

User generated content

Digital inspires new marketing strategies

Digital ecosystem

2001 2005 2010+

Ai8!a+*!B 0144!nta+*!B sha,!a+*!

3 types of digital content

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sha,in. 01nt!nt

3 types of digital shifting in favour of earned media

! Coke is encouraging it’s consumers to migrate from their website to their FB

Brands are driving consumers from their websites to their social platforms

68% Ad Recall2x Message Awareness4x Purchase Intent25% Action Rate

G,an$ K!t,i0 L1(,0!M Ni!*s!n On$!,stan$in. th! Pa*(! 16 a L10ia* K!$ia Q4p,!ssi1nsB Dp,i* ;:1:D0ti1n Rat! L1(,0!M Ja0!+118 Qnt!,na* S1 ;:1:

Because they are starting to understand the value of earned 34),'/

Media

Content

Media

Content

A new balance

Lower budgets for paid media, bigger budgets for producing contents that will produce earned media (emerge and gain a broad visibility) and will develop the bond with our targets.

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Methodology

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! 6e ;uestioned 1W@; Ja0!+118 *i8!,s in ! countries,

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Facebook likers profile

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use occasionall?

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have never used and which ?ou do not wish to use in the future

whose we7site ?ou fre;uentl? visit

How fans join 6&'()#$ Facebook page 5 All countries

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How fans join 6&'()#$ Facebook page 5 All countries

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Impact on purchase 5 All countries SM Dince you 5ave been following t5e brand , on Ja0!+118, would you say t5at,

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Impact on brand advocacy 5 All countries SM Dince you 5ave been following ,. on Ja0!+118B 51(*$ H1( ,!0144!n$ this +,an$ t1 a 6,i!n$?

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Main suggestions to improve fan pages 5 All countriesSM -mong t5e following suggestions, w5ic5 would be of 3riority to you to im3rove , brand name 3ageE

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Main suggestions to improve fan pages 5 All countries SM -mong t5e following suggestions, w5ic5 would be of 3riority to you to im3rove , brand name 3ageE

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Official vs unofficial fan pages 5 All countries SM -ccording to you, t5e brand ,. Ja0!+118 3age w5ic5 you are subscribed to,

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Reasons of unsubscribing 5 All countriesSM ^aE! H1( !E!, (ns(+s0,i+!$ 6,14 a +,an$ na4! pa.! 1n Ja0!+118?SM WhH $i$ H1( (ns(+s0,i+! 6,14 a +,an$ na4! pa.! 1n Ja0!+118?

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In summary! The average age of brand fans is 31 yo! 9 brands are followed in average! 43% of fans visit FB several times a day! FB is used mainly for entertainment (49%)! By becoming a fan, consumers expect getting a

special treatment (95%), but are also willing to advocate the brand in return(94%)

! 76% have already pressed the like button to comment a brand post

! Being a fan has a high impact on purchase intent (36%) and advocacy (92%)

In summary

! Brands are experiencing a honey moon with consumerson Facebook for the moment. It wont last if the brands )o(#" get it right in terms of benefits, quality of contents, and frequency of their communication.

! 36% have already unsubscibed from a %&'()#$ fanpageand the number gets bigger as markets get more mature.

The questions that need to be raised before jumping in:! Organisation! Content development! Dialogue, conversation! Brand tone! Services! CRM! Rhythm! Role within the rest of the marketing mix! KPIs, measurement and ROI

Thank you !Opinionway

and DDB Paris