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

Charlene LiVice President & Principal AnalystForrester Research

October 8, 2007

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Theme

Facebook marketing requires communicating,

not advertising

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Agenda

• What are the demographics of Facebook users?

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

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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

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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

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Facebook’s international age distribution

Source: Facebook internal data, September 2007

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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

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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

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Agenda

• What are the demographics of Facebook users?

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

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Microsoft handles IAB standard ad sales

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Targeting beyond demos

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Facebook’s News Feed Ads insert targeted messages

4-26% CTR for sponsored News Feed stories

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Facebook Flyers give self-service control

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Theme

Facebook marketing requires communicating,

not advertising

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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

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Jeep treats social networks like another channel

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Misses a chance to create a unique community

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Victoria’s Secret also looks like an ad…

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But the community is highly engaged

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Crest White Strips case study

Targeted 20 colleges

Offered free concerts and movie screenings

Live chat facilitate interactions

Measured sales impact at nearby stores

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Ernst & Young engages in a conversation to recruit college students

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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

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Why applications on Facebook are different

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Because I know Dave, his review has context

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My colleague Peter Kim shares travel

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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

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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

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Wal-Mart keeps trying – kudos for effort

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Charlene Li

+1 650/581-3833

cli@forrester.com

www.forrester.com

blogs.forrester.com/charleneli

Thank you