How to use this template

1
Jan 28, 2008. Call in at 1255 p.m. Eastern time
2
Theme
Facebook, a ready-made marketing platform, offers
a vast tool set (with challenges), but to succeed
brands must develop a strategy.
3
Agenda

• Why Facebook?
• Facebook offers a bevy of opportunities
• Challenges of Facebook platform
• Develop a strategy

4
Why Facebook

• Rapid adoption and demographics

5
Timeline
Launch Harvard/college only
Open to public
Pages and Social Ads
2004
2005
2006
2007
2008
Application platform
6
Facebook keeps growing

• Social utility
• 40-50 million users
• 134-200 growth or more in last year
• Over 40 are over age 35
• 13,000 applications deployed
• Valued at 15 billion
• Average visitor stays 20 minutes
• Domination North America, Middle East
• Primarily college educated
• Assumed to be white collar

Source Facebook Press info
7
Facebook could eclipse MySpace.com in early 2009
200 million
Friendster 25 million 65 growth Facebook
40-50 million 200 growth MySpace.com 120
million 72 growth
MySpace.com
Friendster
Facebook
Q4 2008?
2002
2003
2004
Sources Facebook Press Page, Jonathan Browne,
Forrester
8
Facebook, why should I care?

• Rapid adoption and demographics
• Communities inspire trust

9
Members use social networks for communication
Sources North American Technographics Retail And
Marketing Online Youth Survey, Q4 2007
10
. . . which inspires trust
Sources Forrester Jan, 2007 Trends, of Q3 2006
Media Marketing online survey
11
Facebook, why should I care?

• Rapid adoption and demographics
• Communities are important
• Rich user and network data

12
Rich user information
Sources Teresa Valdez Kleins Facebook profile,
used with permission
13
Affinities
Sources Teresa Valdez Kleins Facebook profile,
used with permission
14
And network data
Sources Teresa Valdez Kleins Facebook profile,
used with permission
15
Facebook, why should I care?

• Rapid adoption and demographics
• Communities are important
• Rich user and network data
• Information spreads quickly

16
News Feed encourages spread of ideas
Trend watch News Feed Optimization (NFO)
Sources Jeremiah Owyangs Facebook profile
17
Agenda

• Why Facebook?
• Facebook offers a bevy of opportunities
• Challenges of Facebook
• Develop a strategy.

18
The many opportunities for marketers

• Intelligence
• Profiles and network information
• Public groups
• Marketing
• Facebook pages and sponsored groups
• Beacon
• Advertising
• Banner ads
• Contextual//News Feed/flyer ads
• Social Ads
• Word of mouth/interaction
• Applications

19
Groups and communities
Sources Facebook Screenshots
20
Inbox a new email
Trend watch Email is for old people.
Sources Facebook Screenshots
21
Embedded media with social hooks
Trend watch micromedia
Sources Facebook Screenshots, Robert Scoble
using Kyte
22
Banner ads
Recently, Microsoft invested in Facebook,
broadening its advertising opportunities.
Sources Facebook Screenshots
23
Facebook Ads
Facebook Ads provide accuracy, controlled spend,
and metrics all self-service.
Sources Facebook Screenshots
24
Sponsored groups branded interaction
Facebook Fan Pages will replace sponsored groups.
Sources Facebook Screenshots
25
Case study Wal-Marts Back to College

• Media soundcheck
• Personalized dorm
• Recommend to others
• No discussions
• Results
• Lack of community involvement
• 800 members in two weeks

Sources Facebook Screenshots
26
Targets Rounders program

• "Your Mission Try not to let on in the Facebook
  group that you are a Rounder," the newsletter
  read.
• "We love your enthusiasm for the Rounders, and I
  know it can be hard not to want to sing it from
  the mountaintops (and in the shower, and on the
  bus). However, we want to get other members of
  the Facebook group excited about Target, too! And
  we don't want the Rounders program to steal the
  show from the real star here Target and Target's
  rockin' Facebook group. So keep it like a
  secret!"

Sources Star Tribune http//www.startribune.com/b
usiness/11987331.html
27
Case study Apple Students

• Embracing existing community
• Free product sample
• eCommerce
• Cross-promotion
• Results
• 420,000 users
• 12,000 topics

Sources Facebook Screenshots
28
Targeted advertising
Sources Facebook Screenshots
29
. . . although accuracy is questioned
Souce David Parmet www.parmet.net/pr/
30
Facebook pages allow brands to collect fans
Sources Facebook Screenshots
31
Ads displayed to friends of brand fans,
Fan-Sumers
1. Users can poke each other with branded viral
messages combine social actions such as a
purchase of a product or review of a restaurant
with an advertisers message.
2. Brands can buy paid ads. Frequency is capped
users will see no more than two per day. Users
dial the frequency of the ads.
Sources Facebook Screenshots
32
Beacon third party partners can reach Facebook
network

• Opportunities
• Greater trust (if done correctly)
• Challenges
• Not opt-in
• Many privacy concerns
• Resistance to peer-based recommendations
• Brands need to converse to get fans.

Sources Facebook Screenshot, Charlene Lis
Groundswell blog
33
Widgets branded affinity groups
Sources Facebook Screenshots
34
Widgets and opportunity for marketers

• Growth
• 13,083 applications on the platform
• Top 10 apps have over 10 million installs
• What works
• Applications that have robust functionality
• Social features that connect users
• Yet many are never successful

User
Direct friends
Indirect friends
Interested parties

• Source Rodney Rumford, CEO Gravitational Media
  FaceReviews.com

Graphic Source Rock You
35
Opportunities for widgets

• Well-known offline brands are not the 100
  most-daily-used applications.
• Span multiple networks with OpenSocial.
• Widget networks to become advertising networks
• Developers
• Advertise
• Sponsor
• Rebrand
• Product placement

36
Case study Vampires and movie skins
Sources Facebook Screenshots
37
Agenda

• Why Facebook?
• Facebook offers a bevy of opportunities
• Challenges of Facebook
• Develop a strategy.

38
Challenges

• Facebook data sucked into black hole
• Lack of Web analytics for marketers
• User data
• Facebook releases features without aligning
  with customers.
• News Feed
• Beacon
• Workplace productivity concerns
• Some companies will block
• Privacy concerns with Beacon

39
Beacon revolt
Sources Moveon.org, Computer Associates
40
Agenda

• Why Facebook?
• Facebook offers a bevy of opportunities
• Challenges of Facebook
• Develop a strategy.

41
The four step approach to the groundswell
People Assess your customers Social
Technographics profile.
Objectives Decide what you want to accomplish.
Strategy Plan for how relationships with
customers will change.
Technology Decide which social technologies to
use.
42
People demographics and Technographics

• Is Facebook my audience?
• How do they use technologies?
• What are they talking about?
• Who are they?
• What do they want?

43
Objectives Define deployment
44
Strategy

• Analysis build or join
• Experimentation leads to understanding.
• Gain market intelligence.
• Advertise efficiently.
• Embrace and lead communities.
• Deploy campaign
• Widget
• Facebook Fan Pages
• Advertising options experiment to find ideal mix
• Integrate.

45
Tools best practices

• Understand the tools
• Best practices
• Listen before speaking
• Members are in control
• Allow for discussions
• Media as a lead in
• Trouble kick starting? Be a resource and reward
• Integrate with marketing initiatives

46
Phases for deployment
Maturity
Strategy
Strategies should compound.
Aware of distributed brand monitoring and
observing communities of practice Already has
deployed other social media strategies
increasing budget and resources Uses social
media tools for most product launches crises,
measures, and has resources

• Understand Facebook, experiment with existing
  tools, and deploy advertising.
• Join related groups, and build and deploy a
  group or Facebook page.
• Deploy applications, integrate the experience
  with other Web vehicles, and segment.

Novice
Intermediate
Advanced
47
Dont limit to Facebook

• Brands should not limit strategy to Facebook
  alone
• Prepare for the distributed Web
• Understand OpenSocial
• Understand aggregation of social graph
• Tools come and go, what sustains is a strategy

48
What it all means . . .
49
Facebook

• Many tools, many opportunities
• Privacy and data concerns
• Develop a strategy
• People
• Objectives
• Strategy
• Tools
• Think bigger

50
Thank you
Jeremiah Owyang jowyang_at_forrester.com www.forreste
r.com Blog web-strategist.com