The Power of Like How CPG Brands Can Quantify the Value and

Impact of their Social Marketing Programs

Andrew Lipsman, VP, Industry Analysis & Marketing

Neal Niemiec, Director, CPG Marketing Solutions

3 Things We‟ll Discuss Today

Why now is a great time for CPG brands to use social

marketing

How to apply the Paid/Owned/Earned Media

framework to Facebook marketing

How to quantify Facebook marketing efforts and

maximize impact and ROI

comScore is a Global Leader in

Measuring the Digital World

NASDAQ SCOR

Clients 2,000+ Worldwide

Employees 1,000+

Headquarters Reston, Virginia, USA

Global Coverage Measurement from 172 Countries;

44 Markets Reported

Local Presence 32 Locations in 23 Countries

Big Data 1 Trillion Events Captured Monthly; 40% more

than the monthly page views of the internet

4 © comScore, Inc. Proprietary.

4

comScore Social Essentials™ complements Facebook

Insights, providing competitive intelligence, behavioral

profiling, and behavioral lift measurement

Reach & Frequency

for Own Brand

PAGE INSIGHTS SOCIAL ESSENTIALS™

Competitive

Audience Insights &

Social Lift for All

Brands

Nearly 1 in 6 minutes

online is spent on social

networks

Source: comScore Media Metrix, July 2008 - April 2012

-2008 Jul-2009 Jul-2010 Jul-2011

Social Networking

Facebook

6

The Rise of the Visual Web

7

Pinterest and Instagram among the

fastest growing sites in the past year

U.S. Unique Visitor (000) Trend

+12x Y/Y

Source: comScore Media Metrix, U.S., May 2011 – September 2012

0

5,000

10,000

15,000

20,000

25,000

30,000

May-2011 Aug-2011 Nov-2011 Feb-2012 May-2012 Aug-2012

Pinterest

Instagram

+6x Y/Y

… but given the channel‟s

importance, how can brands begin

to quantify its value and optimize

their efforts?

There has NEVER been a better time to

engage in social media marketing…

9

Effective social marketing

begins with understanding

and quantifying the

synergies between

paid, owned and

earned media

Paid Media

11

Facebook 26%

Yahoo! 12%

Google 4%

Microsoft 4%

AOL 3%

Other 51%

Publisher Share of Display Ad Impressions

Source: comScore Ad Metrix, U.S., March 2012

Facebook is

by far the

largest

publisher

of online

display ad

impressions

12

27%

17%

16%

14%

Display Ad Impressions

Page Views

Time Spent Online

Display Ad Estimated Spending

Social Networking Share of Key Metrics

Source: comScore Ad Metrix and Media Metrix, U.S., March 2012

Despite Social Networking‟s leadership

in the display ad market, it does not

attract its fair share of online ad dollars

Socially-enabled

7%

All Other 93%

Socially-enabled

12%

All Other 88%

1 out of 13 display ads are socially-enabled.

Among CPG advertisers, 1 out of 8 display

ads are socially-enabled.

Source: comScore Ad Metrix Social, U.S., August 2012

Display Ad Impressions

Total Internet

Display Ad Impressions

CPG Advertisers

Owned Media

Top CPG Facebook Brands by Likes

Brand Likes (MM) Brand Likes (MM)

Coca-Cola 53.9 Starburst 11.5

Red Bull 32.9 Sprite 10.7

Starbucks

Coffee 32.6

Starbucks

Frappuccino 10.2

Oreo 30.0 Reese‟s 10.0

Skittles 23.7 Heineken 9.6

Pringles 20.8 Kit Kat 9.5

Monster Energy 19.5 Pepsi 9.1

Ferrero Rocher 16.6 Guarana Antarctica 8.9

Nutella 16.4 Skol 8.3

Dr. Pepper 13.2 Dunkin Donuts 7.8

Source: Facebook, as reported on FanPageList.com, November 2012

16

Yesterday‟s Brand.com website is

today‟s Facebook brand page

Skittles FB fan page had 14x more visitors than Skittles.com

Skittles FB earned media impressions were nearly 150x greater than visits to fan page

17

The Facebook Newsfeed represents the

greatest opportunity for brand visibility

Newsfeed 40%

Photos 18%

Apps/Tools 14%

Profile Pages 12% All Other

16%

Share of Time Spent on Facebook

Brand pages are springboards to success, but

the majority of brand impressions occur on

the Newsfeed – not the brand page

Source: comScore Social Essentials, U.S., October 2011

Skittles Pepsi Dr Pepper Oreo

113:1

294:1

145:1

51:1

Ratio of Earned Social Media Impressions

Among Fans & Friends of Fans to Brand Page Visits

Earned Media

You have fans,

and they have friends

Your

Brand Fan

Fan

Fan

Fan

Brands have the

opportunity to reach

both audiences… at

zero media cost

Get

Fans

Brand

Messages

Reach Fans

in News

Feed

Fans “Talk

About”

News Feed

Content

News Feed

Content

Spreads to

Friends

Goal:

Max

Reach,

ROI

2. Engagement 3. Amplification 1. Fan Reach

Many brands don‟t consider

these intermediary steps

Brands control three basic levers that

determine social media marketing success

22

Q U A N T I F Y I N G A M P L I F I C A T I O N

Top Facebook brands reach 0.5-2.0 Friends

for every Fan reached with earned media

Source: comScore Social Essentials, U.S., March 2012

-

0.5

1.0

1.5

2.0

2.5

0

10

20

30

40

50

60

70

Am

pli

fic

ati

on

Ra

tio

Ex

po

se

d S

oc

ial Im

pre

ss

ion

s (

MM

)

Fans & Friends of Fans' Earned Impressions and Amplification Ratios for Selected Leading Facebook Brands

Exposed Fan Impressions Exposed Friend of Fan Impressions Amplification Ratio

23

Q U A N T I F Y I N G T H E V A L U E O F E A R N E D M E D I A

Earned impressions outpace paid

impressions for some brands

32.2 29.4

26.6

0.2

6.8

15.9

Monster Energy Oreo Dr Pepper

Social Media Impressions (MM) Display Ad Impressions (MM)

Source: comScore Social Essentials, U.S., July 2012

Paid Media vs. Earned Media Analysis

Social Media Impressions (MM) vs.

Display Ad Impressions (MM) for Selected Brands

24

Q U A N T I F Y I N G T H E V A L U E O F E A R N E D M E D I A

How much is all this earned media worth?

29.4

6.8

Oreo

Earned Impressions (MM) Paid Impressions (MM)

Source: comScore Social Essentials, U.S., July 2012

Oreo: Paid Media vs. Earned Media Analysis

Monthly Social Media Impressions (MM) vs. Display Ad Impressions (MM)

Estimated Annualized

Value of

Earned Impressions

based on $3 CPM =

$1.1 Million

25

H E A V Y B U Y E R A N A L Y S I S

A significant percentage of Fans and Friends

are also moderate and light purchasers

Source: comScore Custom Analytics, March 2012

24%

38%

33%

46%

46%

43%

37%

26%

33%

34%

30%

35%

27%

36%

50%

29%

33%

24%

19%

31%

27%

0% 20% 40% 60% 80% 100%

Total Internet

Exposed Coca-Cola Fans

Exposed Coca-Cola Friends of Fans

Exposed Dr. Pepper Fans

Exposed Dr. Pepper Friends of Fans

Exposed Pepsi Fans

Exposed Pepsi Friends of Fans

Co

ca-C

ola

C

lassic

P

urc

hasers

D

r. P

epper

Purc

hasers

P

ep

si

Pu

rch

ase

rs

Distribution of Soft Drink Purchase Intensity Among Pepsi, Dr. Pepper, and Coca-Cola Purchasers

Heavy Medium Light

So

ft Drin

k P

urc

hase In

ten

sity

Quantifying Effectiveness

27

Power of Like 2: Key Findings

A M P L I F I C A T I O N Brands can meaningfully extend Facebook

reach through amplification to Friends of Fans

and help drive sales

E A R N E D M E D I A L I F T The causal effects of earned media exposure

can be isolated, and show lifts in purchase

behavior

P A I D M E D I A L I F T Facebook advertising also shows evidence of

driving lifts in purchase behavior

Download full white paper at:

www.comscore.com/like2

28

E A R N E D M E D I A L I F T

Starbucks earned media impressions drove

significant lifts in in-store purchase

Source: comScore Social Lift, U.S., February-March 2012

0.17

0.36 0.50

0.58

0.83%

1.36%

1.80%

2.12%

0.66%

1.00%

1.30%

1.54%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

0.00%

0.40%

0.80%

1.20%

1.60%

2.00%

2.40%

Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4 No

min

al L

ift

in P

urc

ha

se

In

cid

en

ce

% R

each

of

Exp

osed

an

d C

on

tro

l G

rou

ps

Starbucks Fans & Friends of Fans In-Store Purchase Behavior: % of Exposed Group vs. Control Group Purchasing Starbucks

Weeks 1-4 Following Earned Media Exposure

Nominal Lift Test Group Control Group

+38%

29

P A I D M E D I A L I F T

Facebook paid ad campaigns can drive

positive lifts in purchase behavior

Source: comScore AdEffx Action Lift, U.S., September-December 2011

0.19%

0.38% 0.49%

0.61%

0.11% 0.20%

0.32% 0.39%

0.46%

0.84%

1.18%

1.47%

0.37%

0.69%

1.00%

1.27%

0.00%

0.40%

0.80%

1.20%

1.60%

Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4

Online - Test Online - Control In-Store - Test In-Store - Control

Retailer Premium Facebook Ad Lift

% of Exposed Group Purchasing Online and In-Store

Weeks 1-4 Following Paid Media Exposure

+16%

+56%

30

W H A T ’ S N E X T ? P A I D M E D I A A M P L I F I C A T I O N

Facebook paid ads can help reach a qualified

audience at scale

Source: Facebook-comScore Paid Reach Research, June 2012

• In cases studied, paid ads amplified reach by 4-6x earned media alone

• In each case, audience reached via paid had significantly higher brand purchase and/or engagement

• Conclusion: paid media can help reach qualified audience at scale

U.S. Audience (MM) Reached

by Paid, Earned & Both

5.2x

5.6x

0

20

40

60

80

100

120

Retailer Mobile Mfr Financial

Earned Only Both Paid + Earned Paid Only

4.9x

Putting it all together: Paid, Owned, Earned

Source: comScore Media Metrix, August 2012

Quantify &

Optimize

PAID OWNED

EARNED

What Social Marketing Success

Looks Like: A Virtuous Cycle

33

5 Things to Remember to Achieve Social

Marketing Success

Stop just collecting Fans: use them as a leverage point to

achieve marketing objectives

Reach Fans effectively: get them to engage and amplify your

messages

Know who you’re reaching & how often: tie these metrics back

to your broader marketing strategies

Quantify value of earned media: compare earned to paid ads &

put a $ value on exposures; measure „social lift‟

Cultivate the ‘virtuous cycle’: Paid, Earned & Owned Media are

intertwined and combine to help brands maximize impact

The Power of Like How CPG Brands Can Quantify the Value and

Impact of their Social Marketing Programs

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