Brands place value on insights and loyalty, not spending

How much is a brand fan worth? It’s a question some social media marketers have been asking for a while, but research suggests many are moving on from the search for a hard number. According to a July 2010 survey of social media marketers by Millward Brown and Dynamic Logic, the most valuable aspects of social media brand fans go beyond anything with an immediate monetary value. Increased short-term and long-term spend on the brand were the bottom two results. At the top of the list were the fan’s value as a source of insight and increased loyalty overall. Advocacy and engagement were also important to at least three-quarters of respondents.

Value of a Facebook Fan According to Marketers Worldwide, July 2010 (% of respondents)

This suggests that, despite the real need for return on social media marketing investments, marketers are largely not worrying aboutputting an exact dollar value on each Facebook fan or Twitter follower—as if such an amount could be accurate. And they are keeping in mind some of the less-obvious qualities of brand fans, like as a source of market research. Still, these soft metrics can leave marketers unsure about their returns. Half of respondents to the Millward Brown/Dynamic Logic survey were uncertain about how much they were getting out of their investment in a social media fan base.

Social Media Fan ROI According to Marketers Worldwide, July 2010 (% of respondents)

Less than a quarter thought ROI was good. Difficulties with these measures mean some marketers are still not trying to answer the question.

“The business question always comes up, but nobody can figure this out,” Maria Yap, director of product management at Abobe, told eMarketer about proving ROI for the company’s Facebook page. “For me, it’s about the value to the customer. I understand why companies want to focus on the business goals, but I put that aside. Let’s experiment. Let’s see what being here brings.”

Which ads were most talked about in social media?

A campaign for Unilever's Axe brand for men generated the most online "buzz" this year, according to Zeta Interactive, which tracks comments on blogs, Twitter, message boards and other social sites. Nike's "Rise" spot with LeBron James placed second, and its "Human Chain" came in sixth, while Google's "Parisian Love" spot placed third.

The end of the year is bringing the usual looks back on Madison Avenue at the high and low points of the last 12 months. Now, with social media increasingly important as a marketing tool, those year-end lists are expanding to include assessments of the conversations consumers had in 2010 about ads they liked and disliked. Zeta Interactive, which mines blogs, comments on Twitter, message boards and posts in social media, has compiled its list of the ads of the year with the most “buzz.” (The company calls the online media mining technology it uses Zeta Buzz, hence its penchant for that word to describe the digital chatter.)

The Zeta top 10 for 2010 was completely different from the list from last year, with one exception: Snickers. The Mars candy was the only brand to turn up on both lists. Snickers was in first place in 2009, for its “Snacklish” campaign, and in seventh place this year, for its campaign featuring Betty White and Abe Vigoda that began with a commercial on Super Bowl XLIV. One brand, Nike, turned up twice in the top 10 for 2010, Zeta reported, after not making the top 10 last year. The Nike commercial about and with LeBron James, “Rise,” came in No. 2 and the Nike commercial called “Human Chain,” which was introduced as the Winter Olympics began in Vancouver, finished in sixth place. Footwear brands made a strong showing in the top 10, Zeta reported, taking 4 of the 10 slots. In addition to Nike’s two, a spot for Adidas, called “Fast Don’t Lie,” finished in ninth, and a commercial for K-Swiss, called “Tubes,” came in No. 10.

The brand that finished No. 1 on the Zeta list for 2010 is Axe, the men’s grooming brand sold by Unilever. Axe won for a typically irreverent campaign that urges men to clean themselves all over when they shower. The campaign is focused on a specific part of the male anatomy that has a nickname, which is represented in the ads by athletic equipment. The double entendre, alas, cannot be repeated in a family blog.

“Talk about something that’s gone viral quickly,” said Al DiGuido, chief executive at Zeta, referring to the Axe campaign. A principal reason for that, he added, is the fact the campaign is “pushing the envelope big-time in terms of innuendo.” Among the terms that turned up the most often in the online chatter about the Axe campaign, Zeta reported, were “funny,” “hilarious,” “online” and “viral.” The rest of the Zeta top 10 for this year is, in descending order: No. 3, Google, for “Parisian Love,” a spot that made its debut during Super Bowl XLIV; No. 4, “Smell Like a Man, Man,” the humorous campaign for Old Spice, sold by Procter & Gamble; No. 5, “Making It Right” for Domino’s Pizza, part of a campaign that apologized for the products that Domino’s previously sold; and No. 8, Red Bull, for a commercial titled “Way Back Home.”

via: http://mediadecoder.blogs.nytimes.com/

Brands 'Like' Fb Ads...

Notable brands such as Jim Beam, Yahoo, Baskin Robbins, Panda Express, and Universal Pictures have recently purchased Facebook ads primarily designed to lift their "liker" numbers.

One quick example before getting to a trio of detailed case studies below: Universal Pictures ran "Little Fockers" ads for a week in mid-September, even though the film doesn't premiere until Christmas. Similar to most Facebook advertisers, the studio's promos included the ability to "like" the brand within the ad unit. Universal wasn't available to comment, but the campaign appears to have worked as "Little Fockers" already has 86,000 "likers" to engage - nine weeks before movie tickets go on sale.

Do Facebook.com ads work for other brands? And if so, how much are companies paying for "likers" (or "fans" in the former parlance)? During the Social Ads Summit as part of Advertising Week last month, presenters seemed to agree that the cost per acquisition (CPA) in getting people to "like" a brand runs anywhere from $1 to $5. Generally speaking, marketers who buy the Palo Alto, CA-based site's national homepage placement - where all U.S. users at least see the ad for one day - likely pay the most for their audiences. Meanwhile, CPC and CPM bid advertisers who target demographics and users' interests should theoretically spend less per "liker." Each of the brands interviewed for this piece were mum in terms of disclosing their CPAs and testing methods.

"CPA can vary widely based on the brand itself, the nature of the product, size of the sub-segment and social acceptance of the brand," explained Michael Scissons, CEO of social technology firm Syncapse. "For example, the subset of fans who would 'fan' an oil company might be smaller than the subset who would fan a popular TV show or celebrity brand. This is part of the reason why we see lower vs. higher CPAs across different types of brands, and the reason why it’s not possible to come up with an average cost across industries."

Facebook ads (see "Little Fockers" example above) are not complicated to throw together if you are pitching a product. Grab an attractive image representing the offer, come up with a headline, and write a sentence or two for caption copy. Nearly all marketers - including the examples detailed below - use multiple creatives for their Facebook campaigns after testing different copy and images in inexpensive/small ad buys. Further, ClickZ spoke with marketers for Jim Beam, Baskin Robbins, and Panda Express about their Facebook.com "liker" campaigns in order to evaluate their successes.

Jim Beam Gets 211,000 New 'Likers' In A Few Weeks

jimbeamlogoFor the last six weeks, Jim Beam has been running simply designed ads (see image) intended to build its audience. Rob Mason, U.S. marketing director for parent company Bourbon, Beam Global Spirits & Wine, said the ads have helped quadruple the brand's "liker" base - from 85,000 to 296,000 - in less than two months. "Our current campaign ran for a couple of weeks in mid-August and resumed in early September," he said. "We're exercising a cost-effective system to acquire 'fans' and increase reach. By tapping into Facebook’s targeting capabilities and leveraging successful keyword groups, we have rapidly increased the fan base by [more than] 200K since the start of the campaign." While Jim Beam has also offered a football tickets giveaway contest for people who "like" the brand, Mason said the Facebook.com ads have spearheaded the audience growth. "Prior to this most recent campaign, we primarily built the [Facebook] 'fan' base largely through organic efforts," he explained. "We now drive consumers to our 'fan' page through communication on all of our online properties. The most successful fan acquisition tactics for us have been acutely targeted ad campaigns." The marketing director didn't go into detail on the user-profile-level targeting parameters used in the campaign. One example of the ad being served to ClickZ-based accounts included individuals if their friends had already liked the brand.

Baskin Robbins Grows Its Audience by 212,000 - Even as Weather Cools

brIn terms of sheer numbers for new "likers," Baskin Robbins is producing a slightly bigger success than Jim Beam. The Canton, MA-based ice cream brand is wrapping a month-long Facebook.com ads campaign that's garnered 212,000 "likers." The effort ends on Oct. 15. Baskin Robbins' Facebook.com ads have been sought to entice viewers to form "Group Scoops." Viewers who click through are invited to "like" the brand and then invite three friends to join a Group Scoop. If the Facebook user successfully recruits a trio of friends - who can already be Baskin Robbins "likers" - to start a group, each of the four individuals will receive a coupon for a free scoop of ice cream. So far, the ads have propelled its audience from 637,000 "likers" to 849,000, said Julianna Bowman, spokesperson for 22squared, the Atlanta-based agency behind the initiative. And with a few days left in the campaign, 8,600 Group Scoops have been formed, which equates to 34,400 coupons getting distributed. If the campaign had been launched by mid-summer, it's reasonable to think it might have performed even better. Bowman explained the reasons behind the campaign's September run: "Group Scoop required adequate time for planning and Facebook application development. And its launch served as a way to maintain buzz generated by the fun- and flavors-focused animated summer TV campaign, while also refreshing the brand with a social media component."

Panda Express Picks Up 112,000 'Likers' in One Week

pandaexpressPanda Express ran a Facebook.com ad from Sept. 22 through Sept. 29, offering a freebie for its new "Kobari Beef" entrée to people who "liked" the brand. It lifted the company's Facebook audience by 112,000. And an AllFacebook.com report says the Chinese restaurant chain was the sixth-fastest-growing brand on the social site during that week. "We used 10 different creatives in the campaign," said Glenn Lunde, CMO for the Rosemead, CA-based firm. With a Facebook audience of nearly 700,000 (it had 117,000 "likers" just over a year ago), Panda Express appears to be situated to leverage the social site to drive foot traffic. Lunde suggested that engagement can help drive audience numbers and keep the brand top-of-mind. "'Fan' feedback and comments are immediate, making this form of communication more gratifying and responsive," he said. "Recently, we conducted a poll to gauge guests’ feedback on Kobari Beef and received over 800 comments and 500 'likes.'"

via: ClickZ - http://bit.ly/8ZHUPj

What Is Holding Back Social Media Investment?

Nearly half of brands not sure of social marketing’s value

Social media gets a lot of discussion and even a lot of participation from marketers, but in most cases budgets remain low. One reason for the reluctance to invest more is the old problem of ROI. While some marketers have created successful social media campaigns that they feel they can measure and determine a benefit from, many have still not solved the social success equation. A September 2010 survey by Econsultancy, sponsored by digital marketing agency bigmouthmedia, found nearly half of companies worldwide still said “the jury is out” on the value of social media for their firm. This group still felt they were not able to measure the return on their social media investment—even to put a value on it relative to their other marketing activities.

Value Gained from Social Media Investment, Sep 2010 (% of companies* worldwide**)

Other research has also shown analytics and ROI are the single biggest problem in the way of social efforts. Econsultancy’s report also suggested integration with many other marketing channels was lacking. While the vast majority of companies had managed to integrate email and social media, search engine optimization was the only other marketing channel that came close in integration efforts. This could be because social media efforts often naturally help search ones.

Other areas, both traditional and digital, fell far behind.

Integration of Social Media Activity with Other Marketing Channels, Sep 2010 (% of companies* worldwide**)

Research from several other sources, including eROI and StrongMail, indicates large majorities of email marketers have incorporated social elements in their campaigns, sometimes in sophisticated ways. Other digital marketers must similarly find ways to make social a natural fit with their own marketing channels rather than keeping it siloed for greater effectiveness.

The Thin Line Between Liking a Brand and Liking Its Social Marketing

Liking a brand is not necessarily an invitation to market

Several studies have shown that while social brand followers are interested in deals, they have other reasons to connect. Many also want to stay up on the latest news or show their friends which products they support. ExactTarget’s “Subscribers, Fans and Followers” report found Facebook users who “like” brands are even more likely to place importance on showing off their brand choices to friends than brand followers on Twitter or subscribers to opt-in marketing emails. While the desire for discounts and promotions edged out showing company support even among Facebook users, nearly two in five did say they wanted simply to indicate how much they liked a brand by liking it.

Motivations for "Liking" a Company, Brand or Association on Facebook, April 2010 (% of US internet users)

According to ExactTarget, a major reason for this desire is the nature of Facebook itself. A Facebook profile, which lists brands that a fan is connected to alongside other interests such as music, movies and books, is a venue for self-expression. The company found it was very important for some users to show brands almost as a part of their own personality. Consumers who “like” a brand as a means to their own self-expression are by definition brand advocates, and the earned media potential for marketers among these enthusiasts is high. But marketers must remember that a desire for marketing messages—even those that include a good coupon or exclusive offer—is not why everyone is connecting. The reasons for using Facebook still fall largely, for members of all ages, in the “personal communication” bucket.

Reasons for Using Facebook, by Age, April 2010 (% of US internet users)

So marketers that want to push out messages to their fans must remember that hearing from them too much will seem to create clutter in the news feed, obstructing fans’ main use of Facebook. The “Subscribers, Fans and Followers” report suggests Facebook campaigns should instead try to aid personal communication, for example, by helping like-minded consumers interact. Enthusiasts who identify with a brand enough to consider it part of their self-expression can be connected with others like themselves, multiplying opportunities for brand advocacy rather than getting in the way of what Facebook users like best—communication.