Time-to_make_facebook_marketing_work

November 28, 2011

It’s Time To Make Facebook
Marketing Work
by Nate Elliott
for Interactive Marketing Professionals

Making Leaders Successful Every Day

For Interactive Marketing Professionals

November 28, 2011
It’s Time To Make Facebook Marketing Work
Why Interactive Marketers Need To Provide value To Their Facebook Fans
by Nate Elliott
with Sean corcoran, Sarah Glass, and Sarah Takvorian

ExEcuT I v E S u M Ma ry
After years of aimlessly chasing fans, it’s time marketers start driving real business results from Facebook.
This requires building a Facebook page that has a clear focus and offers value to customers, leveraging
the entire Facebook tool kit and integrating Facebook into a broader marketing strategy. To accomplish
this, interactive marketers must be both an “oracle” who teaches their organization about Facebook and
a “gatekeeper” who manages access to the platform. As marketers mature with the social network and
Facebook increases its commitment to brands, together they will revolutionize the advertising industry.

Tabl E o F co N TE N TS N oT E S & rE S o u rcE S
2 Marketers Haven’t Cracked The Facebook Forrester interviewed 10 vendor and user
Code companies, including blast radius, buddy
Facebook Hasn’t Made brands a Priority Media, Efficient Frontier, Facebook, John deere,
lithium Technologies, Networked Insights,
3 Follow Four Steps To Make Your Facebook
Powerreviews, r/Ga, and vitrue.
Marketing Work
Set clear objectives Related Research Documents
build a Page That Provides value For your Fans “How To develop an Interactive Marketing
use The Full Facebook Tool Kit To Increase content Plan”
reach and Engagement august 17, 2011
Integrate Facebook Into your Marketing Mix “Take control of your Social Marketing Program”
rEcoMMENdaTIoNS april 14, 2011
10 Play Two Roles: Facebook Gatekeeper And “Will Facebook Ever drive ecommerce?”
Facebook Oracle april 7, 2011
WHaT IT MEaNS
11 Facebook Finally Thinks Advertising Is Cool
12 Supplemental Material

© 2011 Forrester Research, Inc. All rights reserved. Forrester, Forrester Wave, RoleView, Technographics, TechRankings, and Total Economic
Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective owners. Reproduction or sharing of this
content in any form without prior written permission is strictly prohibited. To purchase reprints of this document, please email clientsupport@
forrester.com. For additional reproduction and usage information, see Forrester’s Citation Policy located at www.forrester.com. Information is
based on best available resources. Opinions reflect judgment at the time and are subject to change.

2 It’s Time To Make Facebook Marketing Work

MARkETERS HAvEN’T CRACkED THE FACEbOOk CODE
From toppling governments to inspiring award-winning films to bringing long-lost family members
together, Facebook is often the center of attention.1 And marketers are swarming to it like moths to a
flame: 96 of the top 100 advertisers now use the site.2 Yet while millions of people have “liked” brand
pages, most marketers fail to derive value from those relationships. In fact, engagement rates on
brand pages are declining rather than increasing.3 The result? Believe it or not, most marketers don’t
even see Facebook as their best option to drive audience engagement (see Figure 1). Marketers are
failing to use the platform to its full potential because:

· They lack focus. In their race to start a Facebook page, many marketers forgot an integral step:
setting clear objectives. Now they’re left with Facebook pages that have no purpose other than
collecting “likes.” This lack of objectives not only hurts from a business perspective, but also
means that fans don’t get any real value from liking the brand.

· They don’t understand the platform. Facebook is unlike any platform marketers have ever
seen — it’s like a miniature Internet with its own set of rules. EdgeRank, Facebook’s system
for deciding which content appears in the newsfeed, is similar to search engine optimization
(SEO) but requires a different kind of optimization. Facebook Ads are a cross between
banners and paid search — and don’t quite follow the conventions of either. Marketers
struggle not only to understand each of these pieces individually, but also how they work
together and how they’re evolving.

· They don’t have the right resources in place. Facebook doesn’t cost as much in money as it does
in manpower — but many marketing organizations don’t have appropriate manpower in place —
the dedicated people or the content development and sharing processes needed to be successful.4

· They seek the wrong measurements. Marketers say that measuring return on investment (ROI)
is their biggest challenge in social media, and measuring Facebook is no exception.5 Too many
marketers ask “What is the value of a fan?” and not enough marketers understand their fans’
value in terms of loyalty and influence or Facebook’s impact on their business. Marketers won’t
be able to prove value until they begin to ask the right questions.6

Facebook Hasn’t Made brands A Priority
Just as marketers have struggled to use Facebook properly, Facebook has struggled to help them
succeed. In fact, for a company that relies on advertising revenues, Facebook hasn’t done much to
make life easier for advertisers:

· It does not make content management easy. Marketing on Facebook requires a constant flow
of content.7 Yet marketers aren’t set up to be publishers — and Facebook offers only limited
options for managing multiple pages or handling multiple languages.8 Coca-Cola experienced
this downside when Portuguese-language content accidentally appeared on its US page, inciting
some users to respond with hate speech on a page that promotes happiness.9

November 28, 2011 © 2011, Forrester research, Inc. reproduction Prohibited

It’s Time To Make Facebook Marketing Work 3

Figure 1 Interactive Marketers don’t view Facebook as The best option For Engagement

“Which oﬀers you the deepest engagement with individual users today?”

64%
Our primary website
59%

18%
Our campaign microsites
16%

12%
Our blog
6%
US*
Western Europe†
4%
Our Facebook page
8%

1%
Our Twitter account
2%

1%
Our YouTube channel
0%

*Base: 252 US interactive marketers
†
Base: 264 European interactive marketers
(multiple responses accepted)

*Source: December 2010 US Interactive Marketing Online Executive Panel Survey
†
Source: December 2010 European Interactive Marketing Executive Online Survey
60283 Source: Forrester Research, Inc.

· It constantly changes the rules without warning. Facebook’s frequent and unilateral
policy changes make it difficult for marketers to trust and invest in the platform.10 Just ask
any pharmaceutical company: When Facebook recently removed the ability to disable user
comments, it put the pharma companies at direct risk of violating government regulations and
ultimately forced many to shutter their Facebook pages.11

· It offers marketers limited data. Facebook is one of the only major websites that doesn’t allow
third-party ad tags. Not only does that force marketers to rely on Facebook-provided data that
one social analytics executive described as “lightweight,” but it means marketers can’t compare
Facebook campaigns with other channels like search and banners or include them in attribution
analysis.12 Without reliable, comparable data, brands can’t determine how important Facebook
really is to their marketing mix.

FOllOW FOuR STEPS TO MAkE YOuR FACEbOOk MARkETING WORk
Collecting fans without purpose isn’t enough; marketers must get serious about driving business
results from Facebook. To do so, take four steps that will help you squeeze all of the possible value
out of your Facebook program:

© 2011, Forrester research, Inc. reproduction Prohibited November 28, 2011


1. Set clear objectives. If you don’t know what you want to achieve, you probably won’t achieve
much at all. Define objectives that provide real value to your business.

2. Build a page that provides value for your fans. Bring focus to your Facebook marketing by
building a brand page that not only accomplishes your business objectives, but also gives fans a
reason to continually engage the brand.

3. Use the full Facebook tool kit to increase reach and engagement. A brand page shouldn’t sit
on its own. It’s imperative that you combine features such as ads, events, and apps along with
your brand page to get the most out of the network.

4. Integrate Facebook into your marketing mix. Facebook is not an island. It’s as important to
integrate it with the rest of your marketing as with any other medium.

Set Clear Objectives
Start by rethinking what your Facebook page is going to accomplish for your business. Facebook’s
versatility lets you choose from objectives that span almost every part of the marketing mix, including:

· Generating word of mouth. Facebook’s mission is to “give people the power to share” — and
it has succeeded spectacularly. Over 4 billion “things” are shared every day, often related to
products and brands. Facebook is the No. 1 site where consumers see social content about
products and services, well ahead of any other social network.13 And according to Forrester’s
Tech Marketing Navigator, the word of mouth generated on social networks plays a growing role
in the purchase path for consumer technology products (see Figure 2).

· Driving people down the sales funnel. While it’s unlikely to replace dedicated direct marketing
channels like Google AdWords, Facebook can drive some forms of direct response.14 John Deere
uses Facebook content to tempt its half-million fans into a lead-generation site and reports that
Facebook drives leads at a rate comparable to direct mail.

· Increasing loyalty. Facebook offers marketers a new way to engage their most loyal
customers — and to get them to spread marketing messages. For instance, Tasti D-Lite allows
fans to link their TastiRewards accounts to Facebook. Then every time they make a purchase,
a customizable message is posted on their Facebook page.15

· Helping your peers in product development or eBusiness. Savvy consumer product
professionals are tapping Facebook for new ideas and to create new functionality.16 Starbucks
created an application that allowed people to create their own Frappuccino online and then
share with friends on Facebook.17 And Facebook has the potential to drive shared purchases. For
instance, LiveNation’s Ticketmaster has integrated Facebook’s social graph into its interactive
seating chart, allowing people to see where their friends are sitting and buy seats nearby.18



Figure 2 Social Networks are Important Sources of Information For Personal Tech Purchases

2-1 Social networks are an important source of information for people buying personal technologies

“Please select the four sources from the list below that have the most importance or value
in terms of helping you become aware of/consider/purchase or more familiar
with brands of <insert assigned technology (plural)>.”
(Please select four.)

Search engines

Technology/electronic store

General TV

www.Tech info
Awareness
www.Tech manufacturers Consideration
Purchase
Social networking sites

Oﬃce supply store

Direct email

Home/start page

Online e-tailer

Newspaper inserts/circulars

Radio

Blogs

Paid for local newspaper

www.Tech/gaming pub

0% 10% 20% 30% 40% 50%
Percent of in-market US technology decision inﬂuencers

Base: 2,300 US consumers involved in the purchase of desktops, laptops, netbooks, AVSW,
and smartphones

Source: Forrester Tech Marketing Navigator, Q1 2011
Note: Ranked by the awareness stage of the purchase funnel
Note: Asked as three separate questions, one for each stage of the funnel



Figure 2 Social Networks are Important Sources of Information For Personal Tech Purchases (cont.)

2-2 Consumers use social networks for a broad range of product and brand information

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Features 9% 15% 16% 5% 14% 11% 7% 15%

Beneﬁts 13% 9% 6% 11% 13% 17% 4% 9%

What is preferred brand 17% 7% 3% 8% 10% 13% 24% 10%
for me

Examples of how 29% 8% 31% 19% 19% 11% 10% 10%
technology can be used

Awards or 0% 19% 3% 17% 7% 10% 27% 12%
recommendations

What is the latest 14% 13% 13% 21% 13% 13% 4% 4%
and greatest

Where to buy/see 3% 10% 7% 2% 9% 8% 14% 12%
products/brands

Technical details of 10% 9% 1% 2% 2% 2% 2% 9%
a processor

Other 5% 4% 14% 4% 6% 8% 5% 11%

Extremely high High Medium Low

Base: 2,300 US consumers involved in the purchase of desktops, laptops, netbooks, AVSW,
and smartphones



Figure 2 Social Networks are Important Sources of Information For Personal Tech Purchases (cont.)

2-3 Social networks are becoming more important to each stage in the purchase path
2-3

Percent of US consumer technology decision inﬂuencers
2009* 2010† 2011‡
18%
17%
15%
14% 14% 14%

7% 7%
6%

Awareness Consideration Purchase

*Base: 2,301 US consumers involved in the purchase of desktops, laptops, netbooks, AVSW, and smartphones
†
Base: 2,233 US consumersinvolved in the purchase of desktops, laptops, netbooks, AVSW, and smartphones
‡
Base: 2,300 US consumers involved in the purchase of desktops, laptops, netbooks, AVSW, and smartphones


build A Page That Provides value For Your Fans
Today’s brand pages are littered with a random mix of company news, promotions, advertising, and
other content focused on what marketers want rather than what fans want. Carolyn Everson, VP of
global marketing solutions at Facebook, says that the brands that succeed on Facebook are “the ones
that give people a reason to be fans.” To provide value to your fans you should:

· Learn who your fans are and what they want. Facebook doesn’t provide much data on your
fans, but there are ways of getting more information through opt-ins. EMI worked with
campaign management platform Neolane to develop a Facebook app that collected opt-in
customer information and then integrated it back into EMI’s customer database. Knowing
who your fans are can help you determine not only how valuable they are as customers and
influentials, but also what kind of content and engagement they’re looking for.

· Use Facebook data to dynamically optimize your content plan. While Facebook data
is limited, dig through what’s available to learn how your community is responding to
your posts. PageLever — an analytics tool that specializes in optimizing brand pages



based on available Facebook data — pulls near real-time data from Facebook’s application
programming interface (API) to help companies learn what content types are performing the
best, which demographics are responding, and what time of day is optimal for posting. This
data can then be used to create a dynamic content plan that gets the best response out of the
community at any given point in time.

· Use apps to create a richer experience. A “like” allows fans to read and comment on your posts,
but to create deeper engagement like games and contests you’ll need an application. For Valentine’s
Day 2011, Target ran a contest called “The Super Love Sender” that let people vote on which
charity would receive $1 million from the brand. Target’s Facebook app allowed fans to send
friends personalized valentines and get real-time updates on which charity was in the lead.19

· Keep your community active — even in down cycles. Your Facebook page is not a campaign,
it’s a community of people who have raised their hand as brand advocates. As Scott Weisbrod,
VP of strategy at Blast Radius told us, “Facebook allows for a more meaningful relationship
than search or email. It’s important to build a content plan and calendar not only for your big
campaign pushes but also during the down cycles when you’re not doing campaigns.”

use The Full Facebook Tool kit To Increase Reach And Engagement
Facebook offers marketers much more than just branded pages — it also supplies a wide range of
earned, owned, and paid media (see Figure 3). And to get the most out of your fan base, you’ll need
to use the full range of options:

· Use Facebook Ads to increase reach and sharing. Once you’ve built a fan page that offers
fans value, use ads to increase the reach and content of your sharing. Expedia and Efficient
Frontier used Facebook Ads to increase participation in its “The Friend Trips Game”
ultimately driving more than 1 million fans and reducing the cost per fan by 400% over the
course of the campaign.20

· Use events and location to get fans to engage in real-world experiences. One of the benefits
of Facebook is that it can bring people together offline as well as online. Vitamin Water used
Facebook Events to invite fans to its Uncapped Live events happening in several cities across the
country. This way it could invite its fans who in turn could share with their friends to help grow
excitement for the events. Meanwhile, MasterCard created a promotion that rewarded people
for checking in to a series of famous locations around New York City with a chance to win VIP
tickets to a Yankee’s game in MasterCard’s exclusive Batter’s Eye Café.21



Figure 3 Facebook offers a Mix of Earned, owned, and Paid Media

Type of
Option What it is media When to use it
Page A free page for your brand on Owned Always. It is the foundation of your presence on
Facebook where you can incorporate + Facebook and where you build a fan base,
tabs, apps, ads, places, and other earned publish content, and integrate other features.
features. The key is to add long-term value. More than
4 million fans of Pizza Hut have access to special
deals, local coupons, sweepstakes, and more —
all on the brand’s fan page.
Apps Applications that you develop and Owned When you need to create something interactive
can integrate into your Facebook + or when you want to collect opt-in data from
page as a separate tab. Allows you to earned fans. You can build these out as tabs on your fan
create special features like games, page. The Delta “Ticket Counter” app enables
sweepstakes, eCommerce, and more. fans to buy tickets, get flight information, and
log in to their SkyMiles account all on a tab in
the brand’s fan page.
Events A social invitation that enables Owned When you’re using events for marketing and
brands to invite fans and + want to add a viral and mobile element. Vitamin
communicate with them about it. Can earned Water uses Facebook Events to promote its
also be incorporated as a tab on your “Uncapped Live” events in several major cities
fan page. featuring upcoming music artists.
Ads There are three options for Paid When you need to increase the reach and
advertising on Facebook: 1) Premium + frequency of your messages on Facebook — to
Ads, which are located on the right- earned both fans and non-fans. Use Premium and
hand side of a user’s home page and Marketplace Ads to target both non-fans and
profile page and come in different fans and integrate with your newsfeed to
types such as polls, video, like ads, guarantee visibility of your content. Sponsored
etc. — and now expand when a friend Stories allow you to ensure that friends of your
of the user engages the ad; fans will see any interaction they have with your
2) Marketplace Ads, which are brand. Expedia combined its fan page activity
similar to Premium Ads but strictly with eFrontier’s Facebook Ads platform to drive
located in the marketplace; and more than 1 million people to engage with its
3) Sponsored Stories, which guarantee “The Friends Trip Game.”
users see positive actions about a
brand by friends by featuring them in
an ad.
Location Formerly “Places,” Facebook’s location Earned When you want to drive location-based activity
check-in feature is incorporated into such as store visits or event participation. Great
the user’s status update. You can Britain’s tourism agency, Visit Britain, encourages
integrate location into your Facebook Facebook check-ins at popular British tourist
program by asking and rewarding spots and even has an app that shows the
users for checking in and/or taking leaderboard for the top destinations.
actions while in real-world settings.
Off- Using a set of developer options such Owned When you want to add a social layer to your
Facebook as the Open Graph API and + website, microsite, or web application. Levi’s has
integration Facebook Connect, companies can earned added Facebook Like buttons to its website so
add Facebook login and social plug- when a user likes a pair of jeans, their friends see
in features into websites and other it published in the newsfeed.
applications off Facebook.




Integrate Facebook Into Your Marketing Mix
Facebook is too often treated as an isolated asset rather than an integrated part of the marketing
mix — creating inconsistency in both the marketing plan and with the end user. To integrate it
interactive marketers should:

· Incorporate Facebook’s social graph into your existing web properties. Facebook makes it
easy for you to bring its massive sharing network to your website, creating additional reach and
interaction with your content and experiences. Toymaker Step2 built a Facebook Connect login
into its site so customers could repost their product reviews on Facebook as well. The results: The
amount of traffic it got from Facebook grew 135%, and the revenue from that traffic grew 300%.22

· Make Facebook promotions the foundation of broader campaigns. Chances are that your
broader campaigns will create at least some conversation on Facebook; by making Facebook the
center of that campaign you can incite both conversation and participation. Corona’s “the most
liked beer in America” campaign featured the faces of its Facebook fans on a billboard in Times
Square — both creating reach (signs in Times Square typically get 1.5 million impressions per
day) and driving 200,000 new “likes” for the brand.23

· Use Facebook data to make other marketing programs more effective. While Facebook
makes it hard to learn who your users are, it’s relatively easy to track their actions — and to
use that information to improve the rest of your marketing programs. For instance, customer
relationship management (CRM) vendor Merkle can connect Facebook fans to existing
CRM data. And marketers should work with vendors like DataXu, a demand-side media
buying company, which now includes data from Facebook campaigns into its display media
optimization algorithms.24

r E c o M M E N d aT I o N S

PlAY TWO ROlES: FACEbOOk GATEkEEPER AND FACEbOOk ORAClE
as your company matures its use of Facebook, your role as an interactive marketer will mature as
well. In the near future you’ll have to be both the master administrator of your Facebook presence
and also provide the foundation and the education for others within the organization to use it. To
become both a gatekeeper and an oracle, you should:

· Identify who should have access. Facebook isn’t only important to marketers; the company
told us they’re working with individual retail stores, product developers, and more. To keep
your company’s Facebook programs focused and manageable, you must act as gatekeeper.
First, determine who needs access to Facebook — both now and in the future — by
auditing all of your likely use cases for Facebook and identifying all of the likely participants.
Then implement a social media management tool like buddy Media or vitrue to handle
administration and permissioning.25



· keep others in the know. one of the biggest reasons that marketers fail on Facebook is
that they don’t understand it — and the site’s rapid rate of change means that even those
who grasp the platform today might not tomorrow. For instance, at its recent F8 conference
Facebook once again announced dramatic changes to the user experience that will
undoubtedly affect how marketers must use the site.26 because Facebook is first and foremost
a software company that iterates quickly, it’s imperative that you become your company’s
Facebook oracle, keeping tabs on the site’s changes and then educating the rest of the
organization on what those changes mean to your Facebook programs.
· Help secure the necessary budgets. While a brand page is currently free to own, Facebook
marketing is far from free. as Troy Kelly, managing director for the Wal-Mart account at
r/Ga told us, “It’s a myth that Facebook is free. It requires development costs, analytics,
people resources, and time.” as oracle you need to educate your colleagues (and senior
management) on the resources required to succeed, and as gatekeeper you’ll likely own your
company’s Facebook vendor contracts.

W H aT I T M E a N S

FACEbOOk FINAllY THINkS ADvERTISING IS COOl
In the movie The Social Network, Mark Zuckerberg and Sean Parker agree that advertising would
ruin Facebook because ads “aren’t cool.” but with fierce competition from giants like Google,
and the need to support an enormous valuation through real revenue, Facebook knows it must
become more receptive to marketers. and it’s trying hard: recently it hired away Microsoft’s head
of ad sales and implemented tools like the Facebook Studio for agencies. While Facebook will
always focus on customer experience first, expect it to increase its focus on marketing by:

· Making several acquisitions to improve its marketing capabilities. Mark Zuckerberg
says, “Facebook has not once bought a company for the company itself. We buy companies
to get excellent people.”27 but if it wants to become more receptive to advertisers, Facebook
will have to acquire companies and technologies that excel in areas such as data analytics,
market research, word-of-mouth marketing, and mobile marketing.
· Embedding itself in media measurement — and becoming Nielsen’s digital lifeline.
Nielsen dominates the Tv ratings business, but doesn’t enjoy that dominance in digital — an
ominous sign for its future as the 30-second spot becomes less relevant. but Facebook could
be Nielsen’s savior. The two companies already have a partnership in place; if Facebook learns
to provide more robust audience data from its members without trampling on privacy, and
if data on how users share on Facebook becomes as vital a part of media as impressions and
clicks, Facebook will only become more entrenched in marketing. and Nielsen will be able to
differentiate from the competition — as long as the partnership stands.28



· Finally revolutionizing advertising. Facebook told us that Mark Zuckerberg’s goal is to
make advertising as valuable as the rest of the content that people are sharing on the
network. yet Facebook’s short history is littered with failed attempts to do just that.29 If he
really wants to revolutionize the space, Facebook must extend online ads’ interactivity from
a simple click to a layer of social capabilities. This means building instant feedback into ads;
forcing marketers to be authentic and responsive; targeting based on social behavior; and it
means easy sharing at mass scale, requiring even more high-quality content from marketers
and more personalized and relevant search results on engines like bing. Facebook has made
progress with its most recent ad options, but there’s plenty of work left to do.

SuPPlEMENTAl MATERIAl
Methodology
Forrester fielded its December 2010 US Interactive Marketing Online Executive Panel Survey to
252 US interactive marketing professionals and its December 2010 European Interactive Marketing
Executive Online Survey to 264 European interactive marketing professionals; however, only a
portion of survey results are illustrated in this document. The panels consisted of professionals with
insight and familiarity with specific interactive marketing budgets and topics.

Forrester fielded the surveys during December 2010. For quality assurance, panelists answered basic
questions about their firms’ revenue and budgets. Exact sample sizes are provided in this report on a
question-by-question basis. Panels are not guaranteed to be representative of the population. Unless
otherwise noted, statistical data is intended to be used for descriptive and not inferential purposes.

If you’re interested in joining one of Forrester’s research panels, you may visit us at http://Forrester.
com/Panel.

Forrester Tech Marketing Navigator is both a business-to-business and business-to-consumer survey
regarding respondents who have influence over purchase decisions for technology products and
services. Tech Marketing Navigator, Q1 2011, completed 15,308 surveys with technology decision-
makers with titles that range from C-suite executives, IT executives, and line-of-business technology
end users located in the US, Mexico, Brazil, UK, France, Germany, India, China, Japan, and Australia
at companies with two to 5,000-plus employees. Forrester weighs the data to reflect distribution of
job title, company size, and industry within each country, given firmographics estimated from major
databases and Forrester models. This survey is part of Forrester Tech Marketing Navigator and was
fielded during November and December 2010. Kantar Media fielded this survey online on behalf of
Forrester. Survey respondents received either cash or noncash incentives.

Forrester Tech Marketing Navigator fields two business-to-business and business-to-consumer
technology studies in 11 countries each calendar year. For quality control, we carefully screen
respondents according to job title and function. Forrester Tech Marketing Navigator ensures that
the final survey population contains only those respondents who have influenced the purchase of IT



products and services during the past or upcoming 12 months. Additionally, we set quotas for company
size, technology category, geography, and job function as a means of controlling the data distribution.

In addition to sampling error, one should bear in mind that the practical difficulties in conducting
surveys can introduce error or bias into the findings of opinion polls. Other possible sources of
error in polls are probably more serious than theoretical calculations of sampling error. These other
potential sources of error include question wording, question ordering, and nonresponse. As with
all survey research, it is impossible to quantify the errors that may result from these factors without
an experimental control group, so we strongly caution against using the words “margin of error” in
reporting any survey data.

We have illustrated only a portion of survey results in this report. For further access to the data
results, please contact techmarketingnavigator@forrester.com.

Companies Interviewed For This Document
Blast Radius Networked Insights
Buddy Media Page Lever
Efficient Frontier PowerReviews
Facebook R/GA
John Deere Vitrue
Lithium Technologies

ENDNOTES
1
There are literally dozens of stories of long-lost family members being reunited through Facebook. In one
touching story, an 80-year-old woman who was forced to give up her firstborn daughter at the age of 17 was
recently reunited with that daughter after 63 years. Source: Emil Protalinski, “Facebook reunites mother
with daughter after 63 years,” ZDNet, August 18, 2011 (http://www.zdnet.com/blog/facebook/facebook-
reunites-mother-with-daughter-after-63-years/2769).
2
Nearly three in 10 US online adults who visit social networking sites or update/maintain a profile on a
social networking site have become a fan of a brand, product, or company they like the last time they visited
a social networking website. Source: Forrester North American Technographics® Online Benchmark Survey,
Q3 2011 (US, Canada).
3
A study by social technology company Syncapse found that engagement rates on branded pages are down
22% in the past year. Source: Michael Scissons, “Four Things Mark Zuckerberg Should Tell Every CMO,” Ad
Age Digital, August 18, 2011 (http://adage.com/article/digitalnext/things-mark-zuckerberg-cmo/229293/).



Likewise, a recent Webtrends study reported that Facebook click-through rates have declined nearly 20%
since 2009. Source: “Facebook Advertising Performance Benchmarks & Insights,” Webtrends, January
31, 2011 )http://blogs.webtrends.com/wp-includes/ms-files.php?file=2011/01/webtrends_facebook_
advertising_performance.pdf).
4
Most large companies are now working on coordinating their social applications. At this stage, sharing the
right resources is the biggest challenge. See the August 16, 2011, “Resources: The Real Cost Of Social Media
Marketing” report.
5
One in five interactive marketers name measurement/ROI as their No. 1 concern with social media
marketing making it the top concern overall. Source: December 2010 US Interactive Marketing Online
Executive Panel Survey.
6
The bottom line is that marketers are no good at measuring their social media programs: Most don’t even
try to collect metrics that match their objectives and as a result they’re forced to use measurement proxies
that are unproven, imprecise, and often just plain wrong. Measuring your actual objective will always yield
the most reliable data — but if limited resources or an uncooperative social network leaves you looking for
proxies, it’s important to construct, prove, and use those proxies correctly. See the October 11, 2011, “Social
Media Measurement Proxies That Work” report.
7
The rapid growth of social and mobile technologies has created a new media ecosystem that requires
constant customer interaction. In this new landscape interactive marketers must act like interactive
publishers, distributing content while managing always-on interactions with customers across earned,
owned, and paid media. To do so they must create a centralized plan and a responsive process that
encourages customer interactivity. See the August 17, 2011, “How To Develop An Interactive Marketing
Content Plan” report.
8
The groundswell has gone global: The majority of users on sites like Facebook and Twitter now come from
outside the US, and if your social media content reaches the wrong audience, you risk alienating your
biggest fans. To avoid this problem, interactive marketers can choose from three solutions: 1) global pages
that reach all users with a single social profile; 2) country pages that offer a unique social profile for each
national audience; or 3) hybrid models that collect global interest on a central page and then distribute
users to the appropriate country profile. See the March 14, 2011, “The Global Social Imperative” report.
9
Source: Matthew Creamer, “Even Coke Can’t Teach the World to Sing in Perfect Harmony on Facebook,”
AdAge Digital, August 11, 2011 (http://adage.com/article/digital/coke-teach-world-sing-perfect-harmony-
facebook/229229/).
10
At this year’s Facebook F8 developer conference the company once again announced dramatic changes
including a “Timeline” showing the life-long history of a user’s profile, new types of apps, and partnerships
with media companies. Source: Facebook (https://blog.facebook.com/blog.php?post=10150289612087131).
11
Source: Christian Torres, “Drug companies lose protections on Facebook, some decide to close
pages,” The Washington Post, August 13, 2011 (http://www.washingtonpost.com/national/health-
science/pharmaceutical-companies-lose-protections-on-facebook-decide-to-close-pages/2011/07/22/
gIQATQGFBJ_story.html).



12
In an environment where media fragmentation is the status quo, traditional one-to-one, last-touch methods
of allocating demand to marketing efforts are outdated and lead to a suboptimal marketing mix. Marketers
must adopt a cross-channel attribution model in order to optimize marketing budgets, accurately calculate
customer value and acquisition costs, and develop a holistic view of the marketing ecosystem. Failure to
embrace this new standard is expensive — firms will be plagued with continued channel conflict and an
inefficient marketing budget. See the December 3, 2010, “Untangling The Attribution Web” report.
13
According to Facebook, 4 billion “things” are shared on the social network every day. And Facebook
represents 62% of all influence impressions — posts about products and services in social networks
including Facebook, Myspace, Twitter, and LinkedIn. See the April 20, 2010, “Peer Influence Analysis”
report.
14
Despite the fact that hundreds of millions of people around the world have Facebook accounts, the ability
of the social network to drive revenue for eCommerce businesses continues to remain elusive. eBusiness
professionals in retail collectively report little direct or indirect benefit from Facebook, and social networks
overall trail far behind other customer acquisition and retention tactics like paid search and email in
generating a return on investment. See the April 7, 2011, “Will Facebook Ever Drive eCommerce?” report.
15
Increasingly, loyalty programs turn to social channels to increase brand awareness. Social channels provide
access to existing loyalty program members and to their networks. See the May 20, 2011, “Emerging Trends
In Customer Loyalty” report.
16
Consumer product strategy professionals increasingly recognize the value of social co-creation
engagements to involve the customer directly in the product development process. See the December 1,
2010, “How To Turn Social Media Assets Into Social Co-Creation Assets” report.
17
Source: Blast Radius (http://www.blastradius.com/work/frappuccino/).
18
Source: Kip Levin, “Our interactive seat maps integrated with Facebook,” Ticketmaster Blog, August 23, 2011
(http://blog.ticketmaster.com/2011/08/23/our-interactive-seat-maps-integrated-with-facebook/).
19
Source: “Super Love Sender Launches on Target Facebook Page in Celebration of Valentine’s Day and The Big
Game,” Target press release, February 1, 2010 (http://pressroom.target.com/pr/news/super-love-sender.aspx).
20
Source: Forrester Research interview with Efficient Frontier.
21
Source: Todd Wasserman, “MasterCard Rewards Facebook Places Checkins in New “Priceless ” Campaign,”
Mashable, August 1, 2011 (http://www.rga.com/news/article/2011/mastercard-rewards-facebook-places-
checkins-in-new-priceless-campaign).
22
Source: Forrester Research interview with PowerReviews.
23
Source: Times Square District Management Association (http://www.timessquarenyc.org/about_us/
advertisingtimessquare.html).
24
Source: Erin Griffith, “Social Draws Big Ad Dollars, but Does It Really Work?” Adweek, September 26, 2011
(http://www.adweek.com/news/advertising-branding/social-draws-big-ad-dollars-does-it-really-work-
135216).



25
As interactive marketers’ social programs have become more mature, a breed of vendors has cropped up
to help them manage their increasingly complex social presences. Social publishing platforms and social
promotion builders like Syncapse and Wildfire address key pain points for marketers in the expansion
phase of social media marketing, including an increasing number of social site accounts, decentralization
of control over the accounts, and wider scrutiny of the results of programs. See the April 14, 2011, “Take
Control Of Your Social Marketing Program” report.
26
Source: Facebook (http://www.facebook.com/f8).
27
Source: Sean Silverthorne, “Why Facebook is Killing Great Products,” BNET, August 3, 2011 (http://www.
bnet.com/blog/harvard/why-facebook-is-killing-great-products/12608).
28
Source: Jessica E. Vascellaro, “Facebook Sets Deal to Provide Ad Data to Nielsen,” The Wall Street Journal,
September 23, 2009 (http://online.wsj.com/article/SB125356656635628897.html).
29
In late 2007 Facebook introduced “Beacon,” a feature it developed that followed users’ activity off of
Facebook and published that activity to their friends when they took certain actions such as renting movies
or buying shoes. Facebook ended up shutting down the program after significant criticism from privacy
groups and after it paid out $9.5 million in a lawsuit. Source: “Facebook Halts Beacon Gives $9.5M to Settle
Lawsuit,” NetworkWorld, December 9, 2009 (http://www.pcworld.com/article/184029/facebook_halts_
beacon_gives_95m_to_settle_lawsuit.html).


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