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Value of a Follower: Consumer Electronics Case Study

LinkedIn Insights

12 June 2012

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Contents

2

Research

Followers of a global consumer electronics brand on LinkedIn

Brand Impact:– Purchase Consideration– Likelihood to Recommend

Technology usage, consideration, and spend Influencer & Adopter Behavior Reach and Receptivity

Audience

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LinkedIn Followers are Brand X’s most valuable social media asset

54% will spend over $1000 U.S. on consumer electronics in the next 12 months vs. 29% for general US population

Incremental & valuable consumers

55% are only following Brand X on LinkedIn

Ready to buy

88% are in-market for a smartphone in the next 12 months

1.6x more likely to own a smartphone vs. general US population

3x more likely to consider purchasing Brand X’s products than non-followers

33% increased purchase consideration after becoming a follower

2x more likely to recommend Brand X products than non-followers

82% state others come to them for advice about technology vs. 52% for general US population

78% state their friends or colleagues often act on their advice or recommendations about technology

37% increased likelihood to recommend after becoming a follower

Influential Easier to reach and impact

1.6x more LinkedIn followers see updates than Facebook fans

46% chose LinkedIn as a source that affects their Decision Making when it comes to technology

69% of U.S. households make over $75,000 per year

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LinkedIn is the preferred destination for Brand X’s Followers

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Base: N=303 Brand X FollowersSurvey Question: Do you Follow or Like Brand X on other social networks or websites?

55%“

LinkedIn gives me the best

overall information for

following and liking Brand X…

I do not follow Brand X on any

other site

“

Follow Brand X only on LinkedIn

LinkedIn Facebook Google+ YouTube Twitter

54%

39%

24%19% 18%

I prefer to learn about new products from Brand X on the following social media sites…

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54% of U.S. Brand X Followers intend to spend over a $1,000 on technology products in the next year

Base: N=94 U.S. Brand X Followers. Comparison to US Online Population made with research conducted by LinkedIn with sample partner, Survey Sampling International (SSI). N=801 members of the general online U.S. population, recruited via SSI. January 2012. Spend estimates provided in U.S. Dollars.Survey Question: Please estimate how much you think you will spend on technology products within the next 12 months.

Less than $500 $500-999 $1000 or more

39%33% 29%

18%

29%

54%

2012-2013 Household Technology Spend-ing

(% Agreed – U.S. Market Data)

US Online Population Brand X Followers

2X

69%of households make

over $75,000 per year

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Brand X Followers are 1.6X more likely to own a smartphone and 88% are in-market within the next 12 months

Smart phone

51%

82%

Mobile product usage(% Agreed)

US Online Population Brand X Followers

Base: N=303 Brand X Followers. Comparison to US Online Population made with research conducted by LinkedIn with sample partner, Survey Sampling International (SSI). N=801 members of the general online U.S. population, recruited via SSI. January 2012.Survey Question: Which of the following technology products do you own or use on a monthly basis, and which do you plan to purchase in the next 12 months? Select all that apply.

88%In-market for a

smartphone within the next 12 months

1.6X

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Followers are more likely to consider purchasing Brand X

Base: N=303 Brand X Followers. Comparison made to N=308 non-Brand X Followers. Survey Questions: Consideration: Please indicate how likely are you to consider Brand X in your future purchase

% Very likely to consider purchasing(top box)

17%

63%

Non-Followers Brand X Followers

Brand X Future Purchase Consideration for Followers

3X

Increased Purchase Consideration

33%

Base: N=303 Brand X Followers.Survey Question: For each of the following statements, please indicate how has your relationship with Brand X changed since you started following the company on LinkedIn?

Change in Purchase Consideration for Brand X After Becoming a Follower

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Followers are technology influencers who use LinkedIn as a primary source of trusted information

Base: N=303 Brand X Followers. Comparison to US Online Population made with research conducted by LinkedIn with sample partner, Survey Sampling International (SSI). N=801 members of the general online U.S. population, recruited via SSI. January 2012.Survey Question: Please indicate whether you agree or disagree with the following statements.

Friends or colleagues of-ten act on their advice or recommendations about

technology

Others come to me for advice/info about

technology

n/a

54%

78%

82%

Technology Adoption Traits

(% Agreed)

Brand X Followers US Online Population

Microblogs (e.g. Twitter)

Web-based events, webinars, or we-bcasts

Personal blogs

Wikis or Wikipedia

E-mails/e-newsletters from a company

Online/digital advertising

Social networking sites (e.g. Facebook)

Discussion forums, support sites

Professional social networking sites (LinkedIn)

Company websites

15%

18%

18%

21%

23%

25%

28%

42%

46%

51%

Trusted Sources of Online In-formation

(% Agreed)

Base: N=303 Brand X FollowersSurvey Questions: Sources: Which sources of information affect your decision making process when it comes to technology? Select all that apply; Trusted Sources: Of the following sources of information that affect your technology decision making, to what extent do you trust each of the following sources?

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Followers are more likely to recommend Brand X

% Promoters (top 2 box likely to recommend based on users)

21%

48%

Non-Followers Brand X Followers

Likelihood to Recommend Brand X for Followers

2X

Increased Likelihood to Recommend

37%

Base: N=303 Brand X Followers. Comparison made to N=308 non-Brand x Followers. Survey Questions: Recommendation: On a scale of 0-10, how likely would you be to recommend Brand X to your friends or colleagues?

Base: N=303 Brand X Followers.Survey Question: For each of the following statements, please indicate how has your relationship with Brand X changed since you started following the company on LinkedIn?

Change in likelihood to recommend Brand X after becoming a Follower

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Current updates reach 1.6x more followers than Facebook average, with potential to dramatically increase reach

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Percent of followers who see an individual post

Brand X Follower average reach per

update

Facebook fan reach per update (general average)

26%

16%

~1.6x

1-2 3-5 6-10 11-15 16-20 21-40 41+0%

10%

20%

30%

40%

50%

60%

70%

80%

% of Followers Reached per Month

Monthly # of Updates Sent

% o

f F

ollo

we

rs R

ea

ch

ed

Best in class companies reach 85%

of LinkedIn follower base every month

Current Brand X average

Potential reach with

more frequent and

targeted updates

Source: Techcrunch for FB reach; Internal LinkedIn data for reach

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Thank You

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Research Overview

Methodology LinkedIn Follower Impact research Online survey interviews Members incentivized

Research Sample Total sample: N=303 Acquired: N=263 Organic: N=40

Markets US: N=95 (all spend data reported is for U.S. market only in U.S. Dollars)

UK: N=103 Australia: N=105

Fieldwork 29 April – 4 May, 2012

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Affluent, Educated, Innovative, Influential & Early Adopters

Brand X Followers are affluent (69% $75K+ U.S. HHI), 29% with post graduate education, 31% Director or higher in their company, 65% find latest technology important to their professional image

LinkedIn is the professional destination of choice for Brand X’s Followers

78%Males

65%Ages 25-44

78%Technology decision makers in their household

88%In-market for a smart phone

within the next 12 months

40%Work for a small business

(1-50 company size)

31%Enterprise business

(1,001+ company size)

27%Medium business

(51-1,000 company size)

82%Are influential (vs. 54%

US online population)

48%Are early adopters (vs.

42% US online population)

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High spending U.S. Brand X Followers intend to purchase smartphones and tablet PCs in the next 12 months

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Base: Left: N=94; Right: N=61 Brand X US Followers only with spend estimates provided in U.S. Dollars.Survey Question: Please estimate how much you think you will spend on technology products within the next 12 months.

18%

29%

54%

2012-2013 TechnologySpending (US Market Data)

Under $500 $500-999 $1,000 or more

64%Of U.S. Brand X

Followers are in-market within 12 months for technology products and intend to spend $1K+

Smart phone Tablet PC eReader

89%

38%

21%

Products Intend to Purchase(Next 12 months among

$1K+ spenders – US Market Data)

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Brand X Followers are very likely to recommend and revisit the company page

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Likelihood to Recommend

Likelihood to Revisit

11%

5%

33%

25%

56%

70%

Bottom 2 Box (Very Unlikely/Somewhat Unlikely) Neutral Top 2 Box (Very likely/Somewhat likely)

Base: N=187 Brand X Followers/Company page visitorsSurvey Question: Recommend/Revisit: How likely are you to revisit or recommend the Brand X company page to other members on LinkedIn?