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Big Brands & Facebook: Demographics, Case Studies & Best Practices

Just updated the PPT with demo data from Facebook.

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Big Brands & Facebook: Demographics, Case Studies & Best Practices

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

  2. Theme Facebook marketing requires communicating, not advertising 3 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  3. Agenda • What are the demographics of Facebook users? • What are some best practices for brand marketing on Facebook? 4 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  4. 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 5 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  5. 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 6 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  6. Facebook’s international age distribution Source: Facebook internal data, September 2007 7 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  7. Facebook users have “aged” over the past year Percent of US Facebook users in each age group August 2006 August 2007 20% Under 18 21% 35% 18-24 23% 8% 25-34 11% 36% 35+ 45% 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 8 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  8. 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 9 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  9. Agenda • What are the demographics of Facebook users? • What are some best practices for brand marketing on Facebook? 10 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  10. Microsoft handles IAB standard ad sales 11 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  11. Targeting beyond demos 12 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  12. Facebook’s News Feed Ads insert targeted messages 4-26% CTR for sponsored News Feed stories 13 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  13. Facebook Flyers give self-service control 14 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  14. 15 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  15. Theme Facebook marketing requires communicating, not advertising 16 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  16. 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 17 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  17. Jeep treats social networks like another channel 18 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  18. Misses a chance to create a unique community 19 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  19. Victoria’s Secret also looks like an ad… 20 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  20. But the community is highly engaged 21 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  21. Crest White Strips case study Targeted 20 colleges Offered free concerts and movie screenings Live chat facilitate interactions Measured sales impact at nearby stores 22 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  22. Ernst & Young engages in a conversation to recruit college students 23 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  23. 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 24 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  24. Why applications on Facebook are different 25 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  25. Because I know Dave, his review has context 26 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  26. My colleague Peter Kim shares travel 27 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  27. 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 28 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  28. 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 29 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  29. Wal-Mart keeps trying – kudos for effort 30 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

  30. Thank you Charlene Li +1 650/581-3833 cli@forrester.com www.forrester.com blogs.forrester.com/charleneli 31 Entire contents © 2007 Forrester Research, Inc. All rights reserved.

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