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

Charlene LiVice President & Principal AnalystForrester Research

October 8, 2007

3Entire contents © 2007 Forrester Research, Inc. All rights reserved.

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Facebook marketing requires communicating,

not advertising


Agenda

• What are the demographics of Facebook users?

• What are some best practices for brand marketing on Facebook?


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


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


Facebook’s international age distribution

Source: Facebook internal data, September 2007


Facebook users have “aged” over the past year

20%

35%

8%

36%

21%

23%

11%

45%

Under 18

18-24

25-34

35+

August 2006August 2007

Source: Nielsen//NetRatingsNote: 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


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


Agenda

• What are the demographics of Facebook users?

• What are some best practices for brand marketing on Facebook?


Microsoft handles IAB standard ad sales


Targeting beyond demos


Facebook’s News Feed Ads insert targeted messages

4-26% CTR for sponsored News Feed stories


Facebook Flyers give self-service control


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Facebook marketing requires communicating,

not advertising


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


Jeep treats social networks like another channel


Misses a chance to create a unique community


Victoria’s Secret also looks like an ad…


But the community is highly engaged


Crest White Strips case study

Targeted 20 colleges

Offered free concerts and movie screenings

Live chat facilitate interactions

Measured sales impact at nearby stores


Ernst & Young engages in a conversation to recruit college students


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


Why applications on Facebook are different


Because I know Dave, his review has context


My colleague Peter Kim shares travel


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


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


Wal-Mart keeps trying – kudos for effort


Charlene Li

+1 650/581-3833

[email protected]

www.forrester.com

blogs.forrester.com/charleneli

Thank you

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