June 19, 2012
This is a framework for succeeding in marketing and reaching ones fans and friends on Facebook in the best possible way.
"- Social media continues to thrive as an important marketing platform, and large brands are dedicating increasing amounts of time and attention on understanding its impact on consumers from a marketing perspective” said Magnus Tauvon, CEO - Interactive Solutions. “- Marketers need to be aware of the importance of promoting through Facebook; right now, customers are online one minute for every seven minutes. As a consequence, many businesses are expending large amounts of resources on understanding how to become successful in promoting their products through Facebook. It's important to make the message travel through fans to fans of friends and hopefully further on, as well as thoroughly understanding consumer behaviour on Facebook.”
comScore recently released their second version of "The Power of Like 2", which we at Interactive Solutions has taken part of, and now share with our internet followers. In short, it's about how social marketing works and how Facebook users react and behave as consumers. The analysis leverages data and insights from the comScore.
Key insights from The Power of Like 2: How Social Marketing Works include:
- Brands can maximize the impact of their social marketing programs on Facebook by leveraging a framework that helps them move beyond Fan acquisition to delivering reach, impact, and measurable marketing ROI. Using the Brand Page as a control panel for creating social marketing programs, brands should focus on benchmarking and optimizing on the following dimensions to deliver against their broader marketing objectives:Fan Reach - Exposure in the News Feed, Engagement - Fans interacting with Brand Page marketing content, Amplification - Viral delivery of marketing content from Fans to Friends of Fans.
- Most leading brands on Facebook achieve a monthly Amplification Ratio of between 0.5 and 2.0, meaning that they extend the reach of their earned media exposure of Fans to Friends of Fans by 50-200%. These ratios can be increased to improve brand reach by focusing on tactics to optimize Fan Reach and Engagement or by supplementing with paid advertising strategies.
- Facebook represents a unique marketing channel that enables Paid, Earned and Owned Media to be leveraged to create a virtuous cycle of brand impact. Brands use display ads and other paid media (Paid) to attract Fans to the Brand Page (Owned), which serves as a platform for marketing communications that reach Fans and Friends of Fans (Earned) in the News Feed and other sections of the website. These communications can then be supplemented through paid display campaigns, such as Sponsored Stories and Promoted Page Posts (Paid), to maximize reach and brand resonance.
- Concentrated social media campaigns, such as those performed during important marketing promotions, can significantly amplify the reach of earned media exposure. Such amplification may drive increased awareness and consideration that is manifested through higher brand purchase behavior among exposed Fans and Friends of Fans.
- The causal effects of earned media exposure on Facebook Fans and Friends of Fans can be isolated using a test vs. control methodology. In the case of Starbucks, exposed Fans and Friends of Fans showed statistically significant lifts in in-store purchase incidence for each of the four weeks following earned media exposure.
- The increasing cumulative lift in purchase behavior among exposed Starbucks Fans and Friends of Fans provides strong evidence of a latent branding impact of earned media exposure. This same latent effect was observed in the lift in purchase incidence among exposed Fans and Friends of Fans of retailer Target.
- Exposure to Facebook Premium Ads also drove statistically significant lifts in both online and in-store purchase incidence for a major retailer over a four-week post-exposure period. This research highlights the importance of using view-through display ad effectiveness.
“- Facebook and all the social webbsites (LinkedIn, Instagram, Pinterest etc) continues to be where marketers are placing new bets by adding advertising spend with a focus on fan acquisition.”
Bonny Trolle @ Interactive Solutions