Value of a fan

A project for theA project for the WFA DIGITAL NETWORK

March 2011

Th lThe value f f ?of a fan?

This is an abridgedThis is an abridged public version of l ilearningsprepared for the p pWorld Federation of AdvertisersAdvertisers.

Full report is available on requestFull report is available on request to WFA members:http://www.wfanet.org/members_global.cfm

Some backgroundg• Challenge posed by WFA’s Digital Network

• MB & Dynamic Logic agreed to help find out “so what?”

• Not about an arbitrary $ figure for media/ sales value

• All about how to build brand and optimise fan pages

• Bespoke reports already with participants – this report is an abridged overview of findings for industry learning

• Many thanks to all WFA members who took part

Unique two phase research project:Unique two phase research project: combining two perspectives

Phase 1 Phase 2

Marketers•How are they approaching the use of social media?

Brand Fans•How and why are they using brand fan pages?the use of social media?

•What do they expect from social media?

using brand fan pages?•Are fan pages improving brand opinions? How?

WFA members’ view: brand value over business metrics

What do you consider to be “the value of a fan”?

85%

85%%

80%

75%

50%

45%

15%

From liking gto love: How fan

pages build b dbrands

96% spending96% spending more on social

Time and money versus expectation?

But unsure aboutBut unsure about the returns

Social media fan base ROI?

Fans already outspend non‐fans by over 4x. The y p yfan page challenge is to deepen the relationship

Fans Non‐FansFans

4% Bonding

Non‐Fans

1%

62% Advantage 19%

67% Performance 31%

83%

100%

Relevance

Presence

37%

50%

Share of wallet

100%

13.4%

50%

2.8%

Source: Brandz, 2010 global database

Qualitative learning aboutQualitative learning about how to engage is availablehow to engage is available

Listening is key to success

Ignoring social Jumping on Thoughtfully integrated media,

staying out of gamebandwagon —

"must be there"

Thoughtfully integrated program

• Less relevant/current and trustworthy

• Complete loss of

• Ability to listen to consumers and

understand their needs

• Consumers see right through this — and it

kills credibilityComplete loss of control (consumers define the brand by

themselves)

understand their needs

• Consumers co-own the brand and

evangelize

kills credibility

• Traditional marketing approaches alienate

consumers

Source: Firefly Language of Love

Phase Two:Phase Two: Learning from our b d ’ fbrands’ fans

• 24 fan pages from large companies

• Categories included confectionery, alcoholic and non‐alcoholic drinks, personal pcare and telecommunications

• US, UK, Australia, France, d d lGermany and Sweden plus

some global

Phase Two:Phase Two: Methodology

Wall post:Wall post:"Dear BRAND fans, your opinion is important to us!

Please help us improvePlease help us improve this page by answering our short 5 minute

survey."

W k i lWe spoke mainly to existing fans...

Visitors 5%

g

Virtually all page visitors Fans 95%

y p gcompleting our surveys were registered fans.

They had typically been 11

9

7‐12 months

More than a year

Fan Tenure (%)

registered for 3‐4 months.

19

32

20

11

Less than a month

2‐3 months

4‐6 months

7 12 months

9

19

Registered today

Less than a month

First thing we learnedwe learned:

Size matters!

B i i lBut it certainly isn’t everything…isn t everything…

Bigger fan pages generally rated betterBigger fan pages generally rated betterBut number of fans doesn’t tell the whole story

High Correlation: 0.28

Rating

FanInd

exR

0 500,000 1,000,000 1,500,000

# of Fans

Low

The FanIndex rating is a composite g pmeasure

Overall opinionRecommendation

likelihood“Very favourable”

likelihood“Very likely”

FanIndexRating

Revisit likelihoodAttention to brand

posts“Very likely” “Pay a lot of attention,

read them regularly”

We diagnose drivers of the FanIndex ratingg gand then assess impact on brand measures

Fan page Impact on attributes brand equity

I tFanIndexRating

Fan pagecontent

Impact on brand appeal

Impact on t

Benefits of b i f engagementbeing a fan

Starting with the basicsthe basics:

Trust is a must havemust have

Most pages we assessed are

F tt ib t ( t l ) %

Most pages we assessed are delivering well on trust

Fan page attributes (agree strongly) %

55Easy to use and navigate

45

48

55

Clear and uncluttered

Trustworthy source of information

asy o use a d a ga e

42

43

Useful information

Fun and engaging content

36

37

39

New and innovative

Wide variety of information

Stylish design

35

36

Information I was looking for

New and innovative

The Language of Love has taught us:maintain trust through transparency

Transparency

AuthenticityExpertise

TrustFamiliarity Likeability

Source: Firefly Language of Love

Key differentiators:differentiators:

Variety, innovationinnovation and style

AAppear as news never h idnews, never advertising.

They must provide me with information, good knowledge

about the brand so h I ld h h

g

K th

that I could share that with friends like an

‘expert’‐Male, 19

Keep them guessingguessing about what

tcomes next...

Fans most value news & information;

F P B fit (T B ) %

Fans most value news & information; also contests and offers

Fan Page Benefits (Top Box) %

62%Latest news about the brand

58%

61%

l d d l ff

Contests and giveaways

New product information

45%

47%

55%

Enjoy reading other people’s thoughts and ideas

Allows me to show I like the brand

Sales, discounts, coupons and special offers

34%

41%

I enjoy feeling part of a brand community

Access to free downloads and virtual gifts

ideas

13%

32%

It gives me a sense of status

Allows me share my thoughts and ideas

Another key differentiator:differentiator:

A sense of communitycommunity

There’s noThere’s no silver bulletsilver bullet

How you best build appeal will dependwill depend on brand personality & objectivesobjectives

Last but i lcertainly

not least:not least:

P tPost regularly!regularly!

More frequent posts tend to result in a betterMore frequent posts tend to result in a better FanIndex rating

High

123

Rating

Correlation:

4

FanInd

exR Correlation:

0.46

5

4

# of PostsLow0 10 20 30 40 50 60

h klChecklist New product

Contests/ Giveaways product

infoExpected

yExpected

FunDifferentiator

R lVariety

DifferentiatorCommunityDifferentiator

Differentiator

Regular posts

OffExpected Trustworthy brand news

OffersExpected

ExpectedInteractionDifferentiator

InnovationDifferentiator

Conclusions• Fans pages of all sizes can build equity and p g q yengagement, but as expectations increase, brands have to keep pace

• Check your page against our expected checklist• Check your page against our expected checklist

• Then differentiate by going the extra mile in a way which will achieve your specific brand objectives

• Post and comment frequently. Beware campaign mentality: fan pages that ‘go quiet’ can have a detrimental brand impactdetrimental brand impact

• Commit considerable resource: community managers?

Further researchWhile this study has provided some fascinating initial insights there is still much to learn Millward Brown andinsights, there is still much to learn. Millward Brown and Dynamic Logic hope in future to extend this work with partners to explore areas such as:p p

• How responses to fan pages vary by category, country, user type

• How attitudes to fan pages change over timeHow attitudes to fan pages change over time

• How attitudinal responses to fan pages link to behavioural and engagement metricsg g

• How fan page quality relates to efficiency of fan recruitment and retention

Further informationFor further information about this study, please contact:

• WFA• WFA Rob [email protected]

• Millward Brown/ Dynamic Logic Duncan [email protected]@millwardbrown.comJuan Manuel Hernandez [email protected]

Contact MB or DL to conduct your own bespoke fan page assessment

Value of a fan

Business

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