This document discusses how CPG brands can quantify the value and impact of their social media marketing programs on Facebook. It finds that:
1) Brands can meaningfully extend their Facebook reach through amplification to friends of fans and help drive sales.
2) Exposure to earned media on Facebook can produce measurable lifts in subsequent product purchases.
3) Facebook advertising campaigns have also shown evidence of driving positive lifts in purchase behavior after exposure.
The document advocates treating paid, owned, and earned media on Facebook as an interconnected "virtuous cycle" to maximize marketing impact.
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
Power of like_webinar ComScore
1. The Power of Like
How CPG Brands Can Quantify the Value and
Impact of their Social Marketing Programs
Andrew Lipsman, VP, Industry Analysis & Marketing
Neal Niemiec, Director, CPG Marketing Solutions
2. 3 Things We‟ll Discuss Today
Why now is a great time for CPG brands to use social
marketing
How to apply the Paid/Owned/Earned Media
framework to Facebook marketing
How to quantify Facebook marketing efforts and
maximize impact and ROI
3. comScore is a Global Leader in
Measuring the Digital World
NASDAQ SCOR
Clients 2,000+ Worldwide
Employees 1,000+
Headquarters Reston, Virginia, USA
Measurement from 172 Countries;
Global Coverage
44 Markets Reported
Local Presence 32 Locations in 23 Countries
1 Trillion Events Captured Monthly; 40% more
Big Data
than the monthly page views of the internet
5. Nearly 1 in 6 minutes
online is spent on social
networks
Social Networking
Facebook
008 Jul-2009 Jul-2010 Jul-2011
Source: comScore Media Metrix, July 2008 - April 2012
7. 7
Pinterest and Instagram among the
fastest growing sites in the past year
U.S. Unique Visitor (000) Trend
Pinterest 30,000
Instagram
25,000
20,000 +12x Y/Y
15,000
10,000
5,000
0
y-2011 Aug-2011 Nov-2011 Feb-2012 May-2012 Aug-2012 +6x Y/Y
Source: comScore Media Metrix, U.S., May 2011 – September 2012
8. There has NEVER been a better time to
engage in social media marketing…
… but given the channel‟s
importance, how can brands begin
to quantify its value and optimize
their efforts?
9. 9
Effective social marketing
begins with understanding
and quantifying the
synergies between
paid, owned and
earned media
11. 11
Facebook is Yahoo! Google Microsoft
12% 4% 4% AOL
by far the 3%
largest Facebook
26%
publisher Other
51%
of online
display ad
impressions Publisher Share of Display Ad Impressions
Source: comScore Ad Metrix, U.S., March 2012
12. 12
Despite Social Networking‟s leadership
in the display ad market, it does not
attract its fair share of online ad dollars
27% Display Ad Impressions
17% Page Views
16% Time Spent Online
14% Display Ad Estimated Spending
Social Networking Share of Key Metrics
Source: comScore Ad Metrix and Media Metrix, U.S., March 2012
13. 1 out of 13 display ads are socially-enabled.
Among CPG advertisers, 1 out of 8 display
ads are socially-enabled.
Socially-
enabled Socially-
7% enabled
12%
All Other
88%
All Other
93%
Display Ad Impressions
CPG Advertisers
Display Ad Impressions
Total Internet
Source: comScore Ad Metrix Social, U.S., August 2012
15. Top CPG Facebook Brands by Likes
Brand Likes (MM) Brand Likes (MM)
Coca-Cola 53.9 Starburst 11.5
Red Bull 32.9 Sprite 10.7
Starbucks Starbucks
32.6 10.2
Coffee Frappuccino
Oreo 30.0 Reese‟s 10.0
Skittles 23.7 Heineken 9.6
Pringles 20.8 Kit Kat 9.5
Monster Energy 19.5 Pepsi 9.1
Ferrero Rocher 16.6 Guarana Antarctica 8.9
Nutella 16.4 Skol 8.3
Dr. Pepper 13.2 Dunkin Donuts 7.8
Source: Facebook, as reported on FanPageList.com, November 2012
16. 16
Yesterday‟s Brand.com website is
today‟s Facebook brand page
Skittles FB fan page
had 14x more
visitors than
Skittles.com
Skittles FB earned
media impressions
were nearly 150x
greater than visits to
fan page
17. 17
The Facebook Newsfeed represents the
greatest opportunity for brand visibility
Share of Time Spent on Facebook
Profile Pages
12% All Other
16%
Apps/Tools
14% Newsfeed
40%
Photos
18%
18. Brand pages are springboards to success, but
the majority of brand impressions occur on
the Newsfeed – not the brand page
Ratio of Earned Social Media Impressions
Among Fans & Friends of Fans to Brand Page Visits
294:1
145:1
113:1
51:1
Skittles Pepsi Dr Pepper Oreo
Source: comScore Social Essentials, U.S., October 2011
20. You have fans,
Fan
and they have friends
Fan
Brands have the
Your opportunity to reach
Brand Fan
both audiences… at
zero media cost
21. Brands control three basic levers that
determine social media marketing success
Many brands don‟t consider
these intermediary steps
Brand
Fans “Talk News Feed Goal:
Messages
Get About” Content Max
Reach Fans
Fans News Feed Spreads to Reach,
in News
Content Friends ROI
Feed
1. Fan Reach 2. Engagement 3. Amplification
22. 22
QUANTIFYING AMPLIFICATION
Top Facebook brands reach 0.5-2.0 Friends
for every Fan reached with earned media
Fans & Friends of Fans' Earned Impressions and Amplification
Ratios for Selected Leading Facebook Brands
70 2.5
Exposed Social Impressions (MM)
60
Amplification Ratio
2.0
50
40 1.5
30 1.0
20
0.5
10
0 -
Exposed Fan Impressions Exposed Friend of Fan Impressions Amplification Ratio
Source: comScore Social Essentials, U.S., March 2012
23. 23
QUANTIFYING THE VALUE OF EARNED MEDIA
Earned impressions outpace paid
impressions for some brands
Paid Media vs. Earned Media Analysis
Social Media Impressions (MM) vs.
Display Ad Impressions (MM) for Selected Brands
32.2
29.4
26.6
15.9
6.8
0.2
Monster Energy Oreo Dr Pepper
Social Media Impressions (MM) Display Ad Impressions (MM)
Source: comScore Social Essentials, U.S., July 2012
24. 24
QUANTIFYING THE VALUE OF EARNED MEDIA
How much is all this earned media worth?
Oreo: Paid Media vs. Earned Media Analysis
Monthly Social Media Impressions (MM) vs. Display Ad Impressions (MM)
29.4
Estimated Annualized
Value of
Earned Impressions
based on $3 CPM =
6.8
$1.1 Million
Oreo
Earned Impressions (MM) Paid Impressions (MM)
Source: comScore Social Essentials, U.S., July 2012
25. 25
HEAVY BUYER ANALYSIS
A significant percentage of Fans and Friends
are also moderate and light purchasers
Distribution of Soft Drink Purchase Intensity
Among Pepsi, Dr. Pepper, and Coca-Cola Purchasers
Total Internet 24% 26% 50%
Soft Drink Purchase Intensity
Purchasers Purchasers Purchasers
Coca-Cola
Exposed Coca-Cola Fans 38% 33% 29%
Classic
Exposed Coca-Cola Friends of Fans 33% 34% 33%
Dr. Pepper
Exposed Dr. Pepper Fans 46% 30% 24%
Exposed Dr. Pepper Friends of Fans 46% 35% 19%
Exposed Pepsi Fans 43% 27% 31%
Pepsi
Exposed Pepsi Friends of Fans 37% 36% 27%
0% 20% 40% 60% 80% 100%
Heavy Medium Light Source: comScore Custom Analytics, March 2012
27. 27
Power of Like 2: Key Findings
AMPLIFICATION
Brands can meaningfully extend Facebook
reach through amplification to Friends of Fans
and help drive sales
EARNED MEDIA LIFT
The causal effects of earned media exposure
can be isolated, and show lifts in purchase
behavior
PAID MEDIA LIFT
Facebook advertising also shows evidence of
driving lifts in purchase behavior
Download full white paper at:
www.comscore.com/like2
28. 28
EARNED MEDIA LIFT
Starbucks earned media impressions drove
significant lifts in in-store purchase
Starbucks Fans & Friends of Fans In-Store Purchase Behavior:
% of Exposed Group vs. Control Group Purchasing Starbucks
Weeks 1-4 Following Earned Media Exposure
Nominal Lift in Purchase Incidence
% Reach of Exposed and Control
2.40% 2.12% 1.60
1.80% 1.40
2.00%
+38% 1.20
1.54%
1.60% 1.36% 1.30% 1.00
Groups
1.20% 0.83% 1.00% 0.80
0.58
0.66% 0.50 0.60
0.80%
0.36
0.40
0.40% 0.17
0.20
0.00% 0.00
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4
Nominal Lift Test Group Control Group
Source: comScore Social Lift, U.S., February-March 2012
29. 29
PAID MEDIA LIFT
Facebook paid ad campaigns can drive
positive lifts in purchase behavior
Retailer Premium Facebook Ad Lift
% of Exposed Group Purchasing Online and In-Store
Weeks 1-4 Following Paid Media Exposure
1.60% 1.47%
+16%
1.18%
1.20%
1.27%
0.84%
1.00%
0.80%
0.46% 0.69%
0.61% +56%
0.40% 0.49%
0.37% 0.38% 0.39%
0.32%
0.19% 0.20%
0.00% 0.11%
Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4
Online - Test Online - Control In-Store - Test In-Store - Control
Source: comScore AdEffx Action Lift, U.S., September-December 2011
30. 30
WHAT’S NEXT? PAID MEDIA AMPLIFICATION
Facebook paid ads can help reach a qualified
audience at scale
U.S. Audience (MM) Reached
• In cases studied, paid
ads amplified reach by
by Paid, Earned & Both
4-6x earned media
120 4.9x
alone
100 5.2x • In each case, audience
80
reached via paid had
significantly higher
60 5.6x brand purchase and/or
40 engagement
20 • Conclusion: paid media
0 can help reach
qualified audience at
Retailer Mobile Mfr Financial
scale
Earned Only Both Paid + Earned Paid Only
Source: Facebook-comScore Paid Reach Research, June 2012
32. What Social Marketing Success
Looks Like: A Virtuous Cycle
PAID OWNED
Quantify &
Optimize
EARNED
Source: comScore Media Metrix, August 2012
33. 33
5 Things to Remember to Achieve Social
Marketing Success
Stop just collecting Fans: use them as a leverage point to
achieve marketing objectives
Reach Fans effectively: get them to engage and amplify your
messages
Know who you’re reaching & how often: tie these metrics back
to your broader marketing strategies
Quantify value of earned media: compare earned to paid ads &
put a $ value on exposures; measure „social lift‟
Cultivate the ‘virtuous cycle’: Paid, Earned & Owned Media are
intertwined and combine to help brands maximize impact
34. The Power of Like
How CPG Brands Can Quantify the Value and
Impact of their Social Marketing Programs
For questions, contact learnmore@comscore.com
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