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Marketing on Facebook Report Final 27 07 10

Marketing on Facebook Report Final 27 07 10

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! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !

The 8 Success Criteria For Facebook Page Marketing
!

Analysis reveals brands lack maturity by not leveraging social features.! ! ! !
By Jeremiah Owyang
with Christine Tran and Alan Webber Includes input from 34 ecosystem contributors

July 27, 2010

Table of Contents
Open Research .............................................................................................................. 3 Disclosure....................................................................................................................... 3 Ecosystem Input ............................................................................................................ 3
Vendors and Agencies.................................................................................................................. 3 Individual Contributors.................................................................................................................. 3

Executive Summary ....................................................................................................... 4 Facebook: A Platform Marketers Cannot Ignore........................................................ 4 Brands Must Follow the 8 Success Criteria for Facebook Page Marketing ............ 5
Set Community Expectations ....................................................................................................... 6 Provide Cohesive Branding .......................................................................................................... 6 Be Up To Date .............................................................................................................................. 6 Live Authenticity ........................................................................................................................... 7 Participate in Dialog...................................................................................................................... 7 Enable Peer-To-Peer Interactions ................................................................................................ 7 Foster Advocacy ........................................................................................................................... 8 Solicit A Call To Action ................................................................................................................. 8

Brands Fail to Reach Maturity by Not Leveraging Social Features .......................... 8 Recommendations....................................................................................................... 22 Appendix....................................................................................................................... 23
Methodology and Scope ............................................................................................................ 23 Get the Quantitative Scorecard: Altimeter Group Advisory Services ......................................... 23

Endnotes....................................................................................................................... 24 About Us ....................................................................................................................... 26
About Jeremiah Owyang, Partner............................................................................................... 26 About Christine Tran, Researcher............................................................................................... 26 About Alan Webber, Partner ....................................................................................................... 26

Vendors and Agencies Altimeter Group gleaned input from the following vendors. or information from the following industry experts and contributors: David Armano. Bert DuMars. RockYou. Context Optional. Facebook. LiveWorld.0 United States. The Creative Commons License is Attribution-Noncommercial-Share Alike 3.Open Research This independent research was 100% funded by Altimeter Group. share. Ogilvy’s 360° Digital Influence. Individual Contributors Altimeter Group received feedback. Razorfish. Ecosystem Input This report could not have been produced without the generous input from some of the leading market influencers and solution vendors who have a vested interest in seeing success in Facebook page marketing. Adam Smith. some of the technology providers we interviewed are Altimeter Group clients. Annie Noll. Dave McClure. Lithium. Jason Sullivan. Charlene Li. a Powered Company. and utilize. As such. The Community Roundtable. See our website to learn more: http://www. agencies. Janrain. This report is published under the notion of Open Research – we want it to spread at no cost with attribution. Gigya. direction. At the time of this report’s publication.altimetergroup. and expert providers of Facebook page marketing solutions: 360i. AKQA. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. we publish a list of our client base on our website. Spredfast. Disclosure Your trust is important to us. KickApps. Edelman Digital. Inside Facebook. StepChange Group. It is intended for you read. David Berkowitz.com/disclosure. SHIFT Communications. we are open and transparent about our financial relationships. With their permission. Input into this document does not represent a complete endorsement of the report by the vendors or individuals listed below. Vitrue and Wildfire Interactive. Justin Smith. and Anita Wong. Awareness. Shiv Singh. Horn Group.0 United States 3 . Digital Evolution Group.

Brands like Pampers.5 Another study reports that 60% of Facebook users are more likely to recommend a brand after becoming a fan (Chadwick Martin Bailey). Brands need to stop experimenting in Facebook on their own customers.6 As consumers make decisions directly with each other on Facebook. Facebook: A Platform Marketers Cannot Ignore Consumers are adopting Facebook at staggering levels. brands lack a pragmatic approach. agencies. most brands lack a strategy.2 Engagement is ripe. with 50% of active users logging on in any given day. and AXE increased engagement and activated word of mouth through advocacy and peer-to-peer interactions. according to a Nielsen study. Facebook touts a staggering 500 million users worldwide. Confused. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.1 Yet despite the urgency. and then tested the maturity of 30 top brands across six industries. Consumers lean on each other to make decisions – bypassing brands. Macy’s. according to an eConsultancy study. Microsoft. Altimeter Group conducted research. Yahoo.0 United States 4 . brands need guidelines for Facebook page marketing success. or solicited business call to actions that result in transactions. The Society of Digital Agencies reports that more than 45% of senior marketers worldwide named social networks and applications their top priority for 2010. Within this immature landscape. and experts. Wikipedia and Amazon combined. YouTube. The criteria and findings in this report provide brands with a roadmap towards Facebook page marketing success.3 Average internet users are spending more time on Facebook per day than on Google. Consumers trust their friends and family more than other sources of information about products and services. Kohl’s. a few brands were on the right track to successfully harnessing Facebook page marketing. Rather than spin their wheels and waste resources experimenting on customers. to determine success criteria and develop a roadmap for Facebook page best practices.Executive Summary Brands are jumping on the Facebook bandwagon to reach customers. We found Eight Success Criteria for Facebook page marketing.7 Yet despite the urgency.4 The attention of consumers has shifted – marketers must take action. connecting to an average of 130 friends. Our heuristic evaluation revealed that brands fell short – half of the brands we reviewed (14 out of 30) did not fully leverage social features to activate word of mouth. Seventy percent of brands indicate that they planned to increase spending on offsite social media investment. brands are left out of the mix. and gleaned input from 34 vendors. the hallmark behavior of social networks. brands need a roadmap – or risk experimenting on their own customers. including Facebook in 2010.

Altimeter Group gathered input from 34 sources to find out industry-wide best practices.Brands Must Follow the 8 Success Criteria for Facebook Page Marketing Marketers must apply new social marketing strategies to Facebook pages.0 United States 5 . and throw out a traditional one-way website approach. We found Eight Success Criteria for Facebook page marketing that brands must follow. described below: Figure 1: The Eight Success Criteria for Facebook Page Marketing ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.

! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. The limited customization features of Facebook pages should not deter brands. or have entertainment value. so fans will know how to best interact with the page. Brands can accomplish both of these by keeping their pages current and consistently adding fresh content. This creates a familiar entry point for new visitors. This creates a familiar experience for fans. create custom applications or tabs that resonate with your theme. Terms of Use. As a first step. By setting these expectations up front. brands must explain what they expect from fans. For a more powerful experience beyond the limited default features. or a Moderation Policy. Only 20% of content should be specifically about the brand’s product or services. so that if you need to take down inappropriate comments. Vitrue advises brands to create a content calendar.”10 Post content following the 80/20 rule: 80% of content should be informational. while existing followers need a reason to stay engaged. and you are keeping the content fresh for your fans. and define what is appropriate versus inappropriate – and what content will be policed. it’s appropriate for brands to reflect the usage patterns of their active community. or just news and information.0 United States 6 . brands can prevent some forms of abuse. and upload branded logos. support. Timely Content. To do this. Be Up To Date Keep Interaction High with Fresh. In this conversational medium. tips. New visitors want to know that the brand is present. brands must complete their profile information. LiveWorld advises brands to post these guidelines “in a prominent area. describe what fans can expect from the brand: from deals.”8 Provide Cohesive Branding Create a Holistic Experience that Matches the Brand. Second. maximizing the experience for fans. Post Community Guidelines. educational. This “ensure[s] you have the right mix of conversational and promotional posts. The Community Roundtable reminds brands to design and designate custom landing pages.9 New visitors will recognize the brand experience they have come to know and expect. First. Brands must clearly articulate expectations. it’s clear to users why they were deleted. maximizing the real estate that Facebook pages allow in profile pictures.Set Community Expectations Clearly Articulate Expectations to Reduce Confusion and Abuse. and differentiates a brand’s page from other brands.

interact heavily with fans in existing discussions and create your own.13 Remember.0 United States 7 .Live Authenticity Build Trust by Personalizing Interactions with a “Human Touch. As a result. Customers are already talking to each other – brands should enable this natural behavior. 14 Enable Peer-To-Peer Interactions Be Efficient and Enable the Crowd’s Help. Do this by displaying administrator names or photos.12 Resist the temptation to flood the Facebook wall with canned marketing messages that will cause fans to tune out your messages (Lithium). authentic people speaking on behalf of your brand for you online. using a conversational tone. To foster two-way dialog.” Facebook is unique from other social networks in that it requires users to provide their real names. trust. that interaction is be shared with an average of 130 friends.”11 Participate in Dialog Connect with Customers by Fostering Two-Way Dialog. Start by creating an environment that encourages peer-to-peer interactions – ask fans to respond to each other. and recognize top contributors on Facebook’s wall. Each time a fan comments on a brand’s Facebook page. Brands must engage with fans in the manner which they are already accustomed. direct conversations with consumers cascade to their network. If I don't know who's doing the talking it'll feel even more like a microsite experience than a Facebook one.15 A full-fledged question and answer application and community. with ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. Stoke dialog by “reward[ing] the individual for participation and publicly thank[ing] them for being a fan. Participate in these discussions and feature “customers’ top questions and answers. Posts should be written in first person. brands should follow suit so fans connect to the people behind the brand. showcase fan contributions. Harnessing the crowd’s energy helps reduce costs and improves the experience for fans. or inviting page administrators to add signatures to their posts. Two-way dialog spurs interaction. Brands that enable fans to have conversations with actual page administrators have the best chance at creating deeper relationships and brand loyalty.” suggests Olgivy’s 360 Digital Influence. Shiv Singh of PepsiCo notes the importance of “real. providing authentic people-to-people connections. Take this engagement to the next level by enabling Facebook’s default discussion board features. When fans comment. acknowledge them. and the spread of information.

Ask fans to “Like” your page.a moderator and recognition features. e.” reminds Digital Evolution Group.0 United States 8 . polls. and put them to the test by comparing and grading their Facebook page efforts. In our heuristic evaluation using the 8 Success Criteria for Facebook Page Marketing. Many brands fail to deliver simple call to actions that lead fans from engagement to purchase. Prospects trust customers more than they trust brands. it’s also a lower cost channel. Brands Fail to Reach Maturity by Not Leveraging Social Features We selected 30 brands across six industries. Period. leverages the crowd to support itself. we found that brands suffered at setting expectations. “voting on something. Foster Advocacy Foster Word of Mouth – the Holy Grail of Marketing. ensure your efforts are aligned with the expectations of the community – earn their trust first by following the previous Success Criteria.g. says KickApps. Keep in mind: Providing positive peer-to-peer experience requires a community policy. sign up for emails or newsletters. yet immediate call to actions on your landing page and wall page. so promoting advocacy is an essential strategy. before you integrate existing e-commerce experiences or request a call to action. Advocacy is the most difficult of all marketing objectives because brands don’t have direct control over fans. browse products.18 Start with simple. Because customer to prospect recommendations often occurs organically. sharing videos or photos.17 Get creative with custom tabs and applications by tapping into contests. give them opportunities to “get to your core products” (LiveWorld). Think of a Facebook page as a platform to enable your community to tell their story to their friends – give them value. ‘sounding off’ on something. Start by simply asking existing fans to suggest the page to others or “like” a wall post (Wildfire Interactive). Solicit A Call To Action Bring it Back to Business and Provide a Succinct Next Step. Also. and most importantly. and reasons to share.19 The latter need not be “pushy” – lead new visitors and existing fans to custom tabs where they can view exclusive deals. as well as trained community managers who are ready to monitor in real time. submissions and other means of self-expression that encourage members to invite and involve their friends.16 Take it to the next level by encouraging fans to do something on the page that is worth sharing with their Facebook friends. peer–to- ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. “The idea is to eventually sell more of one’s product. and make a transaction.

advocacy. we highlight key findings from grading brands on the Eight Success Criteria: Figure 2: Maturity Index: Brands Fail to Reach Facebook Page Maturity ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. Below. and call to action. Despite the let downs.peer interactions. companies were strong at branding and keeping their pages up to date.0 United States 9 .

53. Not all industries perform equally. while luxury hotels and regulated industries lag. Ironically.38. Industries with communication limitations such as regulated industries such as Energy and Banking fared worse. by Industry ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. Our research found that industries that have direct relationships with their customers demonstrated similar success in social networking channels.74. brands focused on real-world hospitality didn’t live up to their capabilities – we found that Luxury Hotels performed poorly at an average of 2. with Consumer Products and Goods not far behind at 3. Figure 3: Overall Scores for Facebook Page Marketing.0 United States 10 .The retail industry leads.26. Brands in the Retail industry had the higher average at 3. scoring 2.

yet the brand was inconsistent in its responses – reaching out to certain fans over others. ignoring the real possibility of a community backlash. most brands overlooked this key success criterion. For example. Sears responds to some fans and not others. risking community backlash. We checked wall pages. In particular. Without clarifying the purpose of the page and its rules of engagement. profile pages and custom tabs – and found that only eight out of 30 brands articulated the purpose of their Facebook page and appropriate and allowable fan behaviors.00 Although simple to implement.08 out of 5. We read angry comments. none of the five retail brands in our evaluation scored above 2.00. Figure 4: Sears responds inconsistently. Success Criterion 1: Set Community Expectations Average Score: 2.0 United States 11 . ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. we noted that fans of Sears’ Facebook page do not know if the company is responding to all customer issues. Without clarifying its rules of engagement. fans who do not receive responses will feel alienated. addressing some fans but not others. some fans may feel alienated.Most brands don’t set expectations.

Intel.” If a groundswell breaks.00. all scoring a high of 5.00.90 of out of 5. despite its recent “brandjacking” by Greenpeace and other activists.00. Nestle still had not added comment or moderation guidelines. averaging 3. completed profile pages. and 4. we found that brands under fire – BP. BP clearly states that it: “created this Facebook page to engage the public in an informative conversation. Chevron can choose to remove comments at its discretion and refer fans back to these guidelines. Surprisingly.00 respectively.” Toyota asks fans to “keep the Toyota USA page one that all our fans will ‘Like’” on its wall page.00 points across industries. Because Fidelity Investments. On its Commenting tab.00. we reserve the right to delete comments at our discretion. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. and Toyota – scored high. at 5. 5. Success Criterion 2: Provide Cohesive Branding Average score: 3. achieving “Maturity” by scoring at least a 4. open discussion. We checked for logos. In its Community Guidelines.20 Figure 5: Chevron sets expectations with Community Guidelines and a “few simple rules.0 United States 12 . they set the tone for their pages – improving first impressions and fan satisfaction.Not surprisingly.00 Facebook pages have become an extension of brand experiences online.” reserving the right to disallow comments that it considers in appropriate. and Consumer Products and Goods did particularly well. Retail. and AXE have clearly articulated expectations. Brands differentiate their Facebook pages and extend the brand experience. Chevron says that though it supports "lively. Chevron. Auto. and custom tabs with consistent branding. Our evaluation revealed that most brands scored high on branding their Facebook pages. These simple measures can save headaches later on.90 out of 5.

immediately establishing a familiar experience for customers. Sears makes the most of profile picture real estate by uploading a banner logo with promotional information.0 United States 13 . Four Seasons and BMW USA directs new visitors to branded landing pages on their Facebook pages. Four Seasons and BMW USA direct new visitors to branded landing pages.For example. These brands optimize within Facebook’s limited customization features to differentiate their pages and welcome new visitors with a familiar look and feel. reflecting their luxury experiences within Facebook. Figure 6 and 7: Four Seasons and BMW USA welcome new visitors with branded landing pages. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.

AXE posted 67 times.00 out of 5. we found brands posting an average of nearly one post per day. In fact. W Hotels posted to its wall just four times in June. On the low end. more than two thirds of brands (21 out of 30) had updated their pages within the last 24 hours. while Old Spice and Nestle posted seven (Old Spice’s viral campaign started in July). and BMW USA posted 63 times. keeping their pages up to date with fresh content. reducing the opportunity for deeper engagement and trust.1 posts during the month of June.00 ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. distinguishing its page from other brands.0 United States 14 .00 Brands succeeded at reflecting the usage patterns of their fans. or 27. On the high end. All 30 brands had updated their pages within the last two weeks. Brands lack authenticity.Sears optimizes its profile picture with a banner logo. Success Criterion 3: Be Up To Date Average Score: 5. Success Criterion 4: Live Authenticity Average Score: 2.87 out of 5. Ford posted to its wall 86 times in June. Brands post frequently with fresh content. a standard which we consider a minimum. Discounting one outlier.

! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. preferring to keep the interaction between fan-company over person-to-person.50 for Authenticity.00 or 1. Some responses from Sears. or signatures by page administrators. Chevron. scored lowest at 1. Four Seasons. Figure 8 and 9: AXE fans engage. and then looked for names. brands stand to gain trust and deeper engagement.By connecting with fans through natural conversation and acknowledging the team behind the page. and Nestle. We found only one company that did well demonstrating authenticity – each wall post from AXE is signed by “JenniewithAxe” and a custom tab includes Jennie’s photo and biography. and SAP also included the names of the page administrator. all brands under fire.” AXE fans know who they are talking with. BP. we found that few brands revealed the identities of the people who manage their Facebook pages. knowing that they’re talking to “JenniewithAXE. GM. photos. Disappointingly. leading to deeper engagement and trust over time.0 United States 15 . We checked for wall posts written in the first person and in a sufficiently conversational tone.

Chevron. and Nestle. and Consumer Products and Goods scored higher (3.00 or “Maturity” for participating in Dialog. and 3. Figure 10 and 11: SAP regularly responds to wall posts. while Macy’s comments on photos uploaded by fans. Only half of brands (16 of 30) reached a score of 4. as well as furthering discussions with back-and-forth dialog. Also.20 respectively).0 United States 16 . by responding substantively to wall comments and questions in its discussion board. The lowest scoring brands were BP.00.60. Fidelity Investments and General Motors respond to some fan comments. Through substantive two-way dialog. while on average Retail. brands talk at their fans – not with them.10 out of 5. Xerox. SAP was one of two brands that scored 5.80.When it comes to two-way communication and dialog.00 Dialog between users is a key behavior in Facebook – to yield deeper engagement. Walmart. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. We checked a sample of posts within the month of June to see if brands were initiating dialog and responding to comments. brands should follow suit. take notice of a “real” signature from a member of SAP’s social media team. Brian Ellefritz. Other brands also demonstrate participation in dialog: Macy’s and Toyota USA comment on photos uploaded by fans. SAP increases fan engagement. Auto. 3. These brands demonstrate commitment to fan interaction. Success Criterion 5: Participate in Dialog Average Score: 3. and will benefit from the subsequent spread of discussion.

soliciting additional answers from fans and propagating further interaction. Brands fall flat by muffling their own customers – and miss out on leveraging the crowd.21 tackling discussions head on in its discussion board. Here.00 By facilitating peer-to-peer interactions.0 for facilitating peer-to-peer interaction.0 United States 17 . Not only does it enable and participate in a discussion board. brands can maximize efficiency by allowing fans to do the work for them. scoring only a 1. We found that brands failed miserably.22 ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.03 out of 5. which scored a 4. applications. Pampers brings questions from its discussion boards onto its wall.Macy’s invites fans to upload photos. then recognizes contributions with a friendly comment. or discussion boards. the lowest average of all our Success Criteria. achieving only 2. our best case example is from Pampers. Success Criterion 6: Enable Peer-to-Peer Interactions Average Score: 2. Half of brands (15 out of 30) made no efforts to facilitate peer-to-peer interactions at all.00.03. Here. Pampers also doesn’t shy away from criticism of its new diapers. we looked for explicit encouragement of peer-to-peer interactions through wall posts.

Brands in Regulated Industries. Peer-to-peer interaction isn’t limited to its discussion board – Pampers encourages additional peer support by posting questions to its wall. 1. or custom applications that entice fans to participate and share interactions on their own walls. and Pampers. averaging 2. Old Spice. at 1. we found that this is another area in which brands are severely lacking.00 Facebook enables brands to activate word of mouth by allowing fans to share with each other.60. Honda. We looked for simple requests for fans to spread the word. Toyota. Luxury Hotels. Four Seasons.00 or “Maturity. 1.80 respectively.Figure 12: Pampers posts fan questions to its wall and solicits further help. Success Criterion 7: Foster Advocacy Average Score: 2. Only nine brands reached a score of 4. We found few examples. Cisco. Unfortunately.27.40. Kohl’s.27 out of 5. and Tech B2B fared the worse. Target.” achieved by encouraging fans to share their brand enthusiasm. Brands don’t empower fans to speak on behalf of the brand – failing to activate positive word of mouth.0 United States 18 . for all fans to respond. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. These were Macy’s.

Figure 13: Kohl’s Raise Your Receipt Contest asks fans to share their story with others. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States 19 . Kohl’s custom application encourages fans to share “savings stories” with friends by posting comments to their own walls.

respectively). Facebook page marketing should yield positive returns for brands. We found that brands are hesitant to leverage business opportunities. fans can order and print ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. then cleverly integrates the campaign on its Facebook page.0 United States 20 . On the Target page. Highly consumer-focused industries like Luxury Hotels and Consumer Products and Goods. Target.00 and 1. Beyond engagement and word of mouth. it created dozens of video responses to actual fans on Facebook and other social media properties. to making an actual purchase from a custom application.00. and Kohl’s all scored at least a 4. Old Spice hits the jackpot by creating content that fans actually want to share with their friends. brands should not only engage. scoring an average of 2.80. We looked at simple call to actions that increase brand engagement. More recently. but advance members closer to the brand. few brands deliver call to actions that result in actual transactions.Figure 14 and 15: Old Spice captivates audiences with its commercials.45 in call to action. for example.45 out of 5. With fans opting in. On the other hand. Success Criterion 8: Solicit a Call to Action Average Score: 2. the Retail industry demonstrates some success – Macy’s. in particular.00 Like all investments. signing up for newsletters or discounts. are missing opportunities to deliver call to actions (scoring at 2.

fans can make a transaction without ever leaving Facebook.Facebook photos right from its page wall.0 United States 21 . Kohl’s fans can purchase gift cards. Figure 16: Target’s Facebook page photo application allows fans to order and print Facebook photos. With Target’s custom photo application. and sign up for wedding registries. ! ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.

The 30 brands we reviewed averaged a meager 2. Instead. don’t foolishly send away your hard-earned traffic to Facebook without a strategy. Use these Eight Success Criteria as a roadmap for your own Facebook page efforts. like your corporate website. RockYou. custom applications should be considered. We received best practices content from agencies like AKQA.” !Don’t approach any new effort without gauging your investment. Marketers must put down the one-way directional marketing playbook and tap into the two-way behaviors of social networks. increased satisfaction. and social marketing to attract new ones. Horn Group. Brands that want to enter this space cautiously can start with simple built-in features. and Razorfish. As you become advanced. they often lack a long-term plan or vision. or utility. However. Benchmark your efforts each quarter and demonstrate increased improvements.00 points in encouraging peer-to-peer interactions. using Facebook Events to promote physical meetings also results in word of mouth and community interaction (Spredfast). for example. While Facebook pages are great for obtaining and engaging fans.Recommendations As brands rush head first into social marketing. brands must follow these best practices: Put aside your read-only playbook and tap into two-way social marketing.23 Sophisticated brands will use a combination of traditional interactive marketing to retain existing fans. they are limited in the ability to conduct call to action: “If looking for conversion or lead generation. Default Facebook features are limited in advanced functionality.25 Measure and analyze based on business goals – not by fans or “likes. Involver.” brands must measure based on business goals like word of mouth. Next.26 Reduce Risk: Use this scorecard as your long-term roadmap. who specialize in managing social network logins. Ogilvy. To prepare for this new medium. Get actionable – use real KPI formulas by referencing Altimeter Group’s research on Social Marketing Analytics. While the natural reaction is to measure interaction and number of fans or “likes.”24 We sought input on custom applications from vendors such as Buddy Media. Context Optional. aggregate Facebook discussions right on your corporate website by using vendors such as Janrain and Gigya. Instead. Customers want to connect to their friends on Facebook and beyond. or increased traffic to e-commerce applications. Connect the Facebook experience with existing efforts. Edelman Digital. you must integrate Facebook features into your corporate website. Bolster your Facebook pages with applications from third parties. providing opportunities for instant engagement and word of mouth.03 out of 5. add features from third party applications that enhance interactions. conduct the same benchmarks for your competitors and track their performance. ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.0 United States 22 . and Wildfire Interactive. Request that your agency partners use these Eight Success Criteria as a standardized method to gauge the impact of your efforts. discussions.

and segmenting into industry categories. and brands. we reviewed wall posts for the month of June 2010. Because companies should approach Facebook with a long-term approach. agencies.Appendix Methodology and Scope Altimeter Group conducted research from technology vendors.27 Based on these findings. or other features.com. please contact Jeremiah Owyang at jeremiah@altimetergroup. We checked a minimum of five wall post threads in-depth. as well as default and custom tabs and applications. we developed a scorecard of Eight Success Criteria for Facebook Page Marketing. to determine whether brands were responding to fans. groups. Use Altimeter Group’s quantitative scorecard to evaluate or develop a roadmap your Facebook efforts. To learn more about our research-based advisory services. and did not take into account Facebook advertising offerings. Expect Altimeter Group to conduct further research on the integration of social technologies into corporate websites in future research. Get the Quantitative Scorecard: Altimeter Group Advisory Services Don’t approach your Facebook page without a strategy.0 United States 23 . ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. This study was focused on Facebook Pages only. Brands for this study were selected by taking an inventory of Fortune 500 brands. To score brands. community pages. and used these criteria to conduct a heuristic evaluation of 30 brands. we only selected brands that demonstrated ongoing relationships – not short-term Facebook page campaigns. and initiated our own conversations about Facebook page marketing best practices. filtering for Facebook presence.

2010 (http://www. 2010 10 From document provided to Altimeter Group: “Best Practices for Social Media Marketers: Publishing to Facebook.emarketer.” Mashable. July 20. 2010 (http://www. “Facebook Is the Web’s Ultimate Timesink. May 2.” eMarketer. 2010 (http://www.com/Article.php?post=409753352130) 3 Facebook Press Room. 2010 (http://www. 2010 (http://blog.facebook.nielsen.facebook.com/press/info. February 1.com/2010/02/facebook-bootcampredux-creating-a-converstation-calendar-for-your-brand) 13 From direct email to Altimeter Group. February 4. 10 Signs you have it today. June 16. “70% of Companies Plan to Spend More on Twitter & Facebook Marketing.” eMarketer.php?statistics) ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.emarketer. 2010 (http://www.aspx?R=1007568) 7 Andy Beal.ogilvypr. “500 Million Stories.” The Community Roundtable.com/2010/02/70-ofcompanies-plan-to-spend-more-on-twitter-facebook-marketing.Endnotes !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 “Engagement on Social Networks Top Priority for Marketers. 2010 (http://www.” Nielsen Wire.com/Article. Retrieved July 21.com/press/info.facebook. “Facebook Microsite Syndrome. Lithium.com/2010/05/the-facebook-microsite-syndrom.” The Facebook Blog.html) 8 From document provided to Altimeter Group: “Facebook Opportunities and Best Practices.” Ogilvy’s 360 Digital Influence. January 26.com/blog.” Marketing Pilgrim.” Vitrue.aspx?R=1007479) 2 Mark Zuckerberg. July 21. Retrieved July 21. June 30.0 United States 24 .php) 12 “Facebook Bootcamp Redux: Creating A Conversation Calendar For Your Brand. 2010 (http://blog.com/2010/02/16/facebook-nielsen-stats) 5 “Friending The Social Consumer. 2010 14 Facebook Press Room. July 7. 2010 9 From document provided to Altimeter Group: “Roundtable Summary: Facebook Update Community Pages and the 'Like' Button. 2010 (http://blog.php?statistics) 4 Ben Parr. March 16.marketingpilgrim. 2010 11 Shiv Singh. July 13.goingsocialnow. February 2010 (http://mashable.” Going Social Now.” LiveWorld.com/nielsenwire/online_mobile/friending-the-social-consumer) 6 “Social Fans More Likely to Buy.

2010 19 From document provided to Altimeter Group: “Guidelines for a Successful Facebook Business Page. Spredfast. 2010 20 Jeremiah Owyang. Acquires YoVille. “Social Game Developer Zynga Raises $29 Million Series B. July 23.html) 22 From Pampers Facebook page discussion board: “New Pampers are HORRIBLE!” April 14. July 7. May 14. 2010 (http://www. 2010 25 For example. 2010 (http://blog. July 20. “Crisis Planning: Prepare Your Company For Social Media Attacks. 2010 (http://www.” Web Strategy. Citysearch uses Janrain Engage to enable Facebook functionality on their website resulting in 94% of an average of 40 people to publish reviews back to their Facebook friends resulting in a 300% increase in online registrations. “Diaper Gripes Grow Louder for P&G. July 12. 2010 18 From direct email to Altimeter Group.” LiveWorld Newsroom.” Web Strategy.com/blog/2010/07/06/research-and-webinarfacebook-marketing-criteria-for-success) ! ! ! © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3.insidefacebook. 2010 (http://www.com/article/NA_WSJ_PUB:SB10001424052748704635204575242521217158 484.wsj.com/blog/2010/03/22/prepare-yourcompany-now-for-social-attacks) 21 Ellen Byron.” Web Strategy. March 22. July 7. Justin Smith. “Research and Webinar: Facebook Marketing Criteria for Success. Digital Evolution Group.” Wall Street Journal.liveworld. June 30. 2010 (http://www.com/2010/06/02/6-clevertricks-to-double-the-effectiveness-of-your-fan-page-status-updates) 17 From report provided to Altimeter Group: “How can I leverage KickApps to enhance my Facebook presence?” KickApps. June 2.web-strategist.facebook.com/2009/03/23/citysearch-each-item-shared-throughfacebook-connect-generates-30-clicks) 26 Jeremiah Owyang.” The Community Roundtable.html) 16 “6 Clever Tricks to Double the Effectiveness of Your Fan Page Status Updates!” Wildfire Social Media Marketing Blog.” LiveWorld.0 United States 25 . 2008 (http://www.com/topic.” Inside Facebook. 2010 (http://online.wildfireapp. July 13. 2010 24 From document provided to Altimeter Group: “Roundtable Summary: Facebook Update Community Pages and the 'Like' Button. 2010 (http://www.com/blog/2010/06/10/slides-andrecording-social-marketing-analytics-research-findings) 27 Jeremiah Owyang. June 10.web-strategist. July 7.php?uid=89121585311&topic=13293) 23 From direct email to Altimeter Group.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 15 “LiveWorld Brings Online Customer Support to Brands’ Facebook Pages.web-strategist.com/news/press/100707. “Slides and Recording: Social Marketing Analytics Research Findings.

Previously. eGovernment. Christine blogs at christineptran. He focuses on social business and disruptive technologies for customer strategies. © 2010 Altimeter Group Attribution-Noncommercial-Share Alike 3. Alan was a Principal Analyst at Forrester Research where he covered the B2B online and social media space. Previously. She conducts research and analysis on customer strategies. Director of Corporate Media Strategy at PodTech Network and Manager of Global Web Marketing at Hitachi Data Systems. Partner Alan Webber (@AlanWebber) is a Partner with Altimeter Group.About Us Altimeter Group is a research-based advisory firm that helps companies and industries leverage disruption to their advantage. citizens. Customer Strategy.com. About Jeremiah Owyang. and Web initiative efforts at the Department of the Interior and the National Science Foundation. Jeremiah was a Senior Analyst at Forrester Research. Alan has also led strategic planning. About Christine Tran. He writes the Web Strategy blog and is a columnist at Forbes CMO Network. Alan analyzes the impact of emerging technologies on government behavior and interactions between government. focusing on how brands can leverage emerging technologies to their advantage. performance management. Partner Jeremiah Owyang (@jowyang) is a Partner with Altimeter Group. and user based design efforts. He writes the Ronin Research blog. Enterprise Strategy. About Alan Webber.0 United States ! ! 26 . We have four areas of focus: Leadership and Management. usability. and businesses. Researcher Christine Tran (@christineptran) is a Researcher with Altimeter Group. the user experience. and Innovation and Design.

#680 San Mateo.com .com www.altimetergroup. CA 94402-2667 info@altimetergroup.Contact Us Altimeter Group Altimeter’s Hangar (at the Crossroads) 1875 S. Grant St.

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