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Catalyst Reports:
How You Market on Facebook®




                              Jim Nichols
                              Partner, Strategist
                              Catalyst SF LLC
Catalyst Reports: How You Market on Facebook                                                                                                       Catalyst SF



      Contents
      PURPOSE ................................................................................................................................................. 3
      INTRODUCTION ....................................................................................................................................... 3
      PROFILE CENTRIC MARKETING................................................................................................................. 4
         Brand Page: ......................................................................................................................................... 4
         Founding a Group: ............................................................................................................................... 6
         Joining a Group:................................................................................................................................... 7
         Event Marketing: ................................................................................................................................. 8
      AD CENTRIC MARKETING ......................................................................................................................... 8
         Beacon: ............................................................................................................................................... 8
         Social Ads: ........................................................................................................................................... 9
      WIDGETS AND APPLICATIONS................................................................................................................ 10
         Widgets/Applications: ....................................................................................................................... 10
         App Sponsorships .............................................................................................................................. 12
         Widget Advertising: ........................................................................................................................... 12
      MAJOR PROGRAMS ............................................................................................................................... 13
      CONCLUSIONS AND ACKNOWLEDGEMENTS .......................................................................................... 13




                      Copyright 2008 Catalyst SF LLC. All rights reserved. Catalyst SF and the Catalyst logo are trademarks of Catalyst SF.
                           All other companies and brand names referenced herein are trademarks of their respective companies.




                                                                                                                                                                     2
Catalyst Reports: How You Market on Facebook                                                           Catalyst SF


      PURPOSE
      This whitepaper is designed to give marketers a basic understanding of the avenues by which you can
      market on Facebook. It is designed primarily for people who understand the basics of what Facebook is
      and does but are unsure of the best ways to leverage the community in support of marketing goals.

      One of the most exasperating aspects of digital marketing is that the rules are perpetually in flux. While
      this enables companies to constantly improve on technologies and applications, it also makes it very
      difficult to find out the basics of how to do things. That’s what this whitepaper is all about providing.

      The idea is not to publish a laundry list of all of the marketing options but rather to focus on the most
      important marketing channels in the Facebook community so that mainstream marketers can make the
      most of their efforts.


      INTRODUCTION
      One of the most common questions we are asked at Catalyst is “How do I market on Facebook?” Some
      traditional marketers seem to understand My Space better than Facebook. One reason is that marketing
      on MySpace is largely page-centric, meaning that you set up a profile page for a brand much like you
      build your own website.

      But on Facebook, not so much. The essential difference in the way the two communities work, in my
      opinion, is that MySpace is an environment in which you primarily visit pages of others, whereas
      Facebook is more geared to using your profile page as a home base and having information brought to
      you.

      Not to say that you cannot visit pages on Facebook. You can. And you will. But because of the plethora
      of widgets and other applications available in Facebook, there’s far less need to go a wandering.
      That's a small part of what makes this site FAR more popular with professionals, because it isn’t so much
      a “seeking” environment – meaning I seek information and contacts – but rather more of a “having”
      environment – one in which news, functionalities, games, and other useful as well as divertive bits of
      data are brought to you.

      Because so many business people are on Facebook, interest in using it for marketing is strong – stronger
      (I think) than using MySpace despite MySpace’s significantly higher uniques and page views. What I
      want to do here is offer some basic information on how to market on Facebook using techniques
      especially suited to that environment.

      For simplification, I'm going to do some lumping together of options and say there are really three kinds
      of marketing on Facebook: profile centric, ad centric, and app or widget centric.




                                                                                                                     3
Catalyst Reports: How You Market on Facebook                                                         Catalyst SF

      PROFILE CENTRIC MARKETING
      The following approaches and techniques center around marketing efforts that begin or take place
      primarily on Facebook pages specifically about a user or a brand.

      Brand Page: Anyone can build a page on Facebook, including a brand. Sign up, put together an
      appropriate business page, and you’re set. It probably makes more sense for a marketer to get a
      business page than a personal page. Facebook itself says a business page is better than a profile page
      because:

              These pages come pre-installed with custom functionality designed for each category. For
              example, a band Page has a music player, video player, discography, reviews, tour dates, a
              discussion board that the artists can take advantage of. Third party developers will also build
              an array of applications that they will compete for Page Admins to add to their Pages.
              Facebook Pages are also not subject to a fan limit and can automatically accept fan requests.i

      In addition, savvy marketers can create an attractive environment – with graphics and colors and video
      and photos and of course text that can fit the brand standards of most brands.




                                             (Taken from the Facebook Advertising Site)




                                                                                                                   4
Catalyst Reports: How You Market on Facebook                                                           Catalyst SF


      But now what? First, a bit of language distinction. You “friend” people, you “fan” brands. The thing is,
      for most brands, the number of people who will make an effort to find your page and fan you is
      probably fairly limited. Some brands will get lots of friends, others not. Don’t hold your breath unless
      you are going to make a concerted effort to create an environment with valuable experiences. Of
      course, that’s true on MySpace as well.

      It’s also true that there are some unique viral aspects of Facebook that will help spread the word of your
      brand page. When you are fanned by someone, the news of that friending will probably appear in the
      “Newsfeeds” of everyone in that person’s circle (unless your fan opted out of this feature.) The
      Newsfeed is usually found on the center of the user’s start page, and informs her of what she and her
      friends are up to.




                                             (Taken from my Facebook Start Page)



      Getting in Newsfeeds could prove very valuable for some brands, let’s say…adidas®, but perhaps less
      valuable for others, let’s say…Sno-Bol® Liquid Toilet Bowl Cleaner. That’s because the news will only
      have value to the extent that the brand itself is compelling enough to the Newsfeed viewers that they
      will click on it. Speaking for myself, I will be more likely to click on Scion® than Oxydol®.

      Another interesting viral feature of Facebook is the Minifeed, which appears on the profile page of the
      user and lists the things that the individual has done recently. News that a person has fanned your brand
      will also appear here. Ditto when the person performs an action on your page. The people who visit the




                                                                                                                     5
Catalyst Reports: How You Market on Facebook                                                            Catalyst SF

      profile will see it. Some may click the news of the fanning. But don’t expect the number of people who
      do that as a result of the average profile will be enough to fill a stadium.




                                             (Taken from my Facebook Profile Page)

      Hey, I’m not poo-pooing it, it will get you some members. But if you think in millions like I do, you’re not
      gonna get there with just this. But every little helps. And it mushrooms of course, over time. If three
      people fan you and each generates three more fans, and so on, you get that exponential growth curve
      we all know and love.

      Do all this. Absolutely. But once you have a profile and are getting a trickle of fans, there a number of
      other things you can do to boost your brand communication. Here are four of the most important ways:

      Founding a Group: Brands in Facebook can create groups and invite others to join them. To take a
      simplistic example, suppose Honda® was trying to reach “tuners”, people who buy cars and modify them
      for better performance. Yes, there's a lot more to being a tuner than that, but you get the idea. There is
      a very specific demographic profile that has a high composition of tuners. By creating a tuner group and
      inviting likely suspects of tunerdom, Honda could build an environment that would allow them to
      dialogue with this audience effectively.




                                                                                                                      6
Catalyst Reports: How You Market on Facebook                                                        Catalyst SF

      Here's an example of an independent tuner group, for reference:




                                       (Taken from the Ninja Tuners Facebook Group Page)


      With this as an example I bet you can see how a brand like Honda might want to build a group of its
      own.

      As the creator of a group you will have some control over the content. Ensure you use it to make a
      better consumer experience rather than a shilling platform. Or all your fans will go away.

      The key issue here is creating an environment of value to the audience. No one is going to sit still to
      watch Sell-a-thon commercials. But groups can be of enormous value to members. If you are a member
      of Facebook, do a group search for a group of sneaker collectors. I have no doubt that a Nike®- or
      adidas-sponsored sneaker collector group could garner thousands of members with the right content
      and inducements, for example advanced access to new shoes. O-Cel-O® sponges might have more
      difficulty acquiring group members. But I am certain that some creativity applied to the O-Cel-O
      challenge could also make a group of value and interest to the target.

      Joining a Group: Brands can communicate in groups they crate or sponsor. If there are ways to add
      value to the discussion, you comments may be most welcome. But too much overtness or
      commercialness in your communication stream may get you kicked out of a group or have your entire
      presence in Facebook shut down. The Facebook people don’t mess around. They are very committed to
      the idea of consumer defined experience.

      The next tool was a complete mystery to me until I read the excellent Bible of Facebook Marketing by
      Justin Smith. Thus I publish a portion of his entry below verbatim:

              Joining a Network: Facebook Networks are like group pages for everyone who’s a member of
              an Educational, Work, or Geographical network. While no Facebook members “own” any



                                                                                                                  7
Catalyst Reports: How You Market on Facebook                                                           Catalyst SF

              pieces of network pages, network pages offer 1) another way for users to discover events,
              posted items, and marketplace listings, and 2) discussion forums and walls which any
              members can post to.

              Network pages are probably the most commonly accepted places to spam in Facebook. While
              you can post there, keep in mind that your messages may be considered spammy even if
              they’re real and relevant.ii

      Event Marketing: As with groups, event marketing allows Facebook users to invite people to real
      or virtual world events. For example, a vodka brand could invite people to a vodka tasting in a real bar in
      a city or group of cities.

      Events automatically receive a special page on which you can put in all the necessary and tempting
      details. You can invite all your fans to an event, and the page even collects RSVPs if you want to
      anticipate crowds and needs.


      AD CENTRIC MARKETING
      The next several approaches discuss advertising options on Facebook.

      One of the advantages of advertising in an environment like Facebook is that the options for highly
      precise contextual, behavioral, and demographic targeting are legion. Here are some highlights.

      Whereas the tactics in the profile-centric section of this white paper are more geared to the hands-on
      marketer – one who is herself trying to integrate the brand and its messages into the fabric of Facebook-
      - there are also a variety of other tools to consider. Many are simply Facebook versions of other forms of
      Internet advertising and Google Ad Sense. Here are some of the majors.

      Beacon: Probably the most famous marketing tool on Facebook, Beacon is the system in which users’
      purchases and actions on sites OUTSIDE OF FACEBOOK were published as news in Minifeeds and
      Newsfeeds.

      Started last November, the system is a sort of “keeping up with the Joneses” application that tells your
      friends what you just bought or did. The equivalent of how years ago some people would honk their
      horns in the street to brag to the neighbors when they brought home a new car.

      Imagine yourself on Facebook, minding other people’s business in the Newsfeed, and you see, “Elaine
      just bought a St. John knit set at BlueFly™." Intrigued, you hustle on over to BlueFly and buy one
      yourself.

      Beacon had problems in the beginning, principally because it was an opt-out system, rather than an opt-
      in. In one widely reported scenario, a website providing the purchasing info to Facebook deployed a
      pop-up essentially asking, ‘do you wanna opt out?’. Apparently, a lot of people didn’t understand or
      notice. And the result was that, in one instance, a husband’s jewelry purchase was broadcast to his
      personal network – including his wife, who was the intended recipient of the gift.




                                                                                                                     8
Catalyst Reports: How You Market on Facebook                                                            Catalyst SF


      Now, there was more damage here than a spoiled gift. It also led to rumors among those who read
      about it that the jewelry was not for his wife but for someone else. And a character is impugned by a
      marketing app.

      To their credit, Facebook responded quickly with program changes that, in a nutshell, made it an opt-in
      instead of an opt out. One of the consequences of trying new things is that people screw up. Fortunately
      the transient nature of web content and applications is such that things can get fixed quick.

      Responding quickly was incredibly important because there were thousands of people very ticked off,
      and activist group MoveOn.org was even driving a petition to stop the practice.

      Since the jewelry and other incidents occurred last December, Facebook has changed the way it works.
      As they describe it on their site, “When you send an action to Facebook, the user is immediately alerted
      of the story you wish to publish and will be alerted again when they sign into Facebook. The user must
      proactively consent to have a story from your website published.” iii

      Personally, I am not a fan of Beacon. The people at Facebook pitch it as a service to customers (“Enable
      your customers to share the actions they take on your website with their Facebook friends.”) I view it as
      an invasion of privacy, regardless of the changes. Target does not broadcast my Swiffer® Mop purchase
      on a billboard, why on earth does Facebook? That said, it should be pointed out that I am a Baby
      Boomer, and we tend to have very high standards for privacy that younger generations do not.

      Beacon’s certainly better than it was in terms of privacy. Well anyway. You may have no problem with
      any of this.

      Social Ads: What Social Ads does it that it delivers product information in a Newsfeed and Minifeed
      when people perform an act related to the product advertised. If I told people I was going motorcycling,
      then that statement might get paired with a text ad providing info on where to buy a specific brand of
      motorcycle, or for a local cycle shop.

      You can, by the way, opt out of this easily.

      Here’s how Facebook pitches it:

              Reach the right people.

              Instead of creating an advertisement and hoping that it reaches the right customers, you can
              create a Facebook Social Ad and target it precisely to the audience you choose. The ads can
              also be shown to users whose friends have recently engaged with your Facebook Page or
              engaged with your website through Facebook Beacon. Social Ads are more likely to influence
              users when they appear next to a story about a friend's interaction with your business.iv

      Social Ads offers a broad range of demographic targeting options. Obviously, the closer the post is
      related to your brand, the better it will convert. You buy Social Ads with a self service application on the




                                                                                                                      9
Catalyst Reports: How You Market on Facebook                                                          Catalyst SF

      order of Google Ad Words or Yahoo Search. They can be bought by CPC or CPM. As such, it appears to
      be an especially good tool for local retailers as well as larger brands.




                                         (Taken from the Facebook Advertising Website)


      The key distinction from a privacy perspective is that the ads are paired with posts made through the
      Facebook environment. If you are willing to have your action posted in Facebook pairing it with an ad
      doesn’t seem a breach of privacy. To me. You can also place such ads next to Beacon driven
      announcements. Use your judgment there.

      I don't opt out. I think Facebook needs to make money somehow, and this seems an excellent way to do
      it.


      WIDGETS AND APPLICATIONS

      Widgets/Applications: Ah, widgets, the media darlings of H2 2007. Let me start by saying that I
      am very pro-application, pro-widget. The idea that you choose the information and functions that are
      brought to you on your pages is great.

      There are tens and tens and tens of thousands of widgets out there. No one has any idea of the exact
      count. Some are in incredibly broad usage – Slide’s photo application is an example. Something like half
      of the Facebook users have this app in their Facebook presence. Another is FunWall, a service that soups
      up your comment wall with multimedia.

      But what’s interesting is that with all this supply of widgets and apps, relatively few brands have really
      been able to take advantage of this phenomenon in a giant way. Why? Because they either haven’t tried
      or they haven’t done it right.

      I’m gonna focus on “haven’t done it right.” Let’s start with the example of Sony®’s Christmas Snow
      Globe. I should tell you that I had never heard of the snow globe until I did a search on Facebook
      marketing tips and found a post by Tim Faulkner on Valleywag.




                                                                                                                   10
Catalyst Reports: How You Market on Facebook                                                      Catalyst SF

      Here is a picture of Snow Globe:




                                                                                         v

                                                (Taken from ValleyWag)


      Snow Globe was pretty but got less than 500 downloaders. Why? There’s no point in my even trying to
      describe this better than Rodney Rumford did at FaceReviews, so I will print his comments verbatim:

              Here is what is right about the Sony Snowglobes application:
              * Creative idea
              * Allows self expression and customization
              * Visually exciting
              * Uses notifications & mini-feed correctly

              Here is what is wrong with the Sony Snowglobes application:
              * No tabbed navigation
              * No clear way to invite friends (I can’t believe they missed that!)
              * It does not remember that I created a globe (very frustrating)
              * After i create and send a globe i can’t navigate anywhere else (like to make a new one)
              * No way to see which snowglobes my friends have created
              * Text instructions are too long.
              * Only allows for Christmas snowglobes. Too short of a product lifecycle window
              * It makes me take an extra step to add the snowglobe to my profile page
              * They promote 3 other apps in a very visually dominating way on the homepage (none of
              which have any success)
              * The about page does not even have an image of what the app does. DUH!
              * The profile page does not have messaging that makes we want to add the app.
              * No one from Sony or their ad agency has responded to any of the reviews written on the
              applications wall.vi

      There you have it.




                                                                                                            11
Catalyst Reports: How You Market on Facebook                                                            Catalyst SF

      You can do this right, but it’s tough. Not tough and therefore don't do it, but rather tough and therefore
      you should get help from someone who knows the space well. Frankly most brands need the help of a
      company that lives eats sleeps breathes social media. The key is finding an idea that has real consumer
      value, and then making it easy peasy to viral.

      Not all Facebook applications fall into the category of “widgets”. When most people think of widgets
      they think of “gadgets” – little doo-dads that do fun things like turn pictures into slide shows. There are
      other more serious sorts of applications that do significantly more.

      For example, we have a client called Real Time Matrix that offers a “Vortex” modular unit AND a
      VortexMe Facebook app on which it lives in Facebook. What is different about Vortex is that it is
      essentially a more serious application – no vampires here. It delivers real time content related to a
      particular topic to the user’s desktop or pages on Facebook, iGoogle, or Netvibes. Video, audio, text, all
      linked to their original locations online. A number of publishers have adopted this platform already, and
      brands are beginning to as well. It really is worth a look and I will provide more info Monday.

      Real Time Matrix and other companies that develop more serious apps are a critical part of why
      Facebook has become so useful to business people.

      App Sponsorships: But let’s take another example. Also from Sony. Sony Studios rebranded that
      popular and (to those of us whom are sane) exasperating app called Vampires, which is from RockYou!
      They rebranded it as part of their launch strategy for the Halloween picture 30 Scary Nights.

      Results? Jeremiah Owyang, a great analyst at Forrester, reported the following results on his blog:

              The campaign was only live for 3 weeks, and there were 59,100 sweepstakes entries. (success
              was deemed at 10k, this clearly moved beyond that)The visits (I don’t know if they were
              unique or repeated) were 11,642,051 for the bite page, and 17,652,567 for the stats page (I
              believe these are part of the interactive experience of the game.vii

      This time Sony clearly got it right. They leveraged a pre-existing community and an app that had already
      proven its worth to consumers.

      So should you make your own widget or other app? Perhaps, though perhaps you should consider
      sponsoring an existing one instead. Or doing both. But again, getting the counsel of a company that has
      social media in its DNA is critical. You can’t wing widgetry or widget sponsorship.

      Widget Advertising: A couple of companies are offering graphical and text ads on their networks
      of widget applications. Generally this is a REACH play, cheap tonnage. There is a role for that for some
      brands. My understanding is that CPMs are running in the $2-$3 range, which is good eatin’ these days.
      You can target by site and by some demo info, as well as activity level on Facebook.




                                                                                                                    12
Catalyst Reports: How You Market on Facebook                                                          Catalyst SF

      Interestingly, one can also advertise widgets in these widget ad networks, which could really grow your
      install base if your app is any good. Here are a couple of examples I found:




                                           (Taken from the Widget Summit website)




                                               (Taken from the Gigya web site)



      MAJOR PROGRAMS
      So here’s the one some of you are waiting for. There are lots of brands that don’t have the people
      resources to make events and participate in groups and buy key words. Facebook is certainly willing to
      build a program for a large budget that involves any combination of the above or maybe custom tools.
      My understanding of what constitutes large is $500K+.


      CONCLUSIONS AND ACKNOWLEDGEMENTS
      Justin Smith, the creator of a wonderful site called Inside Facebook (http://www.insidefacebook.com)
      offers a veritable catalogue of marketing methods and specific details on his site. Far more than the top
      line I have provided here. His comments are particularly relevant for brands who embrace the concept




                                                                                                                  13
Catalyst Reports: How You Market on Facebook                                                                Catalyst SF

      of guerilla marketing, whereas I try to focus solely on the needs of giant brands. But no matter how big
      or small you are, you owe Justin’s site a visit. He's got plenty for big brands as well.

      I am very thankful for his willingness to provide such info on his pages because it allowed me to enrich
      the content in this post, and set me straight on two misconceptions I was under. I am also grateful for
      the efforts of the other excellent writers and their posts I referenced in this document.

      Also, I want to say that many traditional marketers will be put off by the number of options and the
      seeming complexity of directions you can go on Facebook. Actually, it may really frighten you to know
      that there are a number of OTHER tools that I didn’t mention above. There’s no one standard
      executional platform like a :30 TV ad in social media. But the beauty of that is you get to develop a
      program that is PERFECT for your situation.



      i
           Find the complete post here: http://www.facebook.com/business/?pages
      ii
       Find the complete post here: http://www.insidefacebook.com/2007/12/09/inside-facebook-marketing-bible-24-
      ways-to-market-your-brand-company-product-or-service-in-facebook/
      iii
            Find the complete post here: http://www.facebook.com/business/?beacon
      iv
            Find the complete post here: http://www.facebook.com/business/?socialads
      v
            Find the complete post here: http://valleywag.com/339675/why-big-brands-are-getting-facebook-wrong
      vi
            Find the complete post here: http://valleywag.com/339675/why-big-brands-are-getting-facebook-wrong
      vii
            Find the complete post here: http://www.web-strategist.com/blog/index.php?s=vampires




                                                                                                                     14

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Como fazer marketing no Facebook

  • 1. Catalyst Reports: How You Market on Facebook® Jim Nichols Partner, Strategist Catalyst SF LLC
  • 2. Catalyst Reports: How You Market on Facebook Catalyst SF Contents PURPOSE ................................................................................................................................................. 3 INTRODUCTION ....................................................................................................................................... 3 PROFILE CENTRIC MARKETING................................................................................................................. 4 Brand Page: ......................................................................................................................................... 4 Founding a Group: ............................................................................................................................... 6 Joining a Group:................................................................................................................................... 7 Event Marketing: ................................................................................................................................. 8 AD CENTRIC MARKETING ......................................................................................................................... 8 Beacon: ............................................................................................................................................... 8 Social Ads: ........................................................................................................................................... 9 WIDGETS AND APPLICATIONS................................................................................................................ 10 Widgets/Applications: ....................................................................................................................... 10 App Sponsorships .............................................................................................................................. 12 Widget Advertising: ........................................................................................................................... 12 MAJOR PROGRAMS ............................................................................................................................... 13 CONCLUSIONS AND ACKNOWLEDGEMENTS .......................................................................................... 13 Copyright 2008 Catalyst SF LLC. All rights reserved. Catalyst SF and the Catalyst logo are trademarks of Catalyst SF. All other companies and brand names referenced herein are trademarks of their respective companies. 2
  • 3. Catalyst Reports: How You Market on Facebook Catalyst SF PURPOSE This whitepaper is designed to give marketers a basic understanding of the avenues by which you can market on Facebook. It is designed primarily for people who understand the basics of what Facebook is and does but are unsure of the best ways to leverage the community in support of marketing goals. One of the most exasperating aspects of digital marketing is that the rules are perpetually in flux. While this enables companies to constantly improve on technologies and applications, it also makes it very difficult to find out the basics of how to do things. That’s what this whitepaper is all about providing. The idea is not to publish a laundry list of all of the marketing options but rather to focus on the most important marketing channels in the Facebook community so that mainstream marketers can make the most of their efforts. INTRODUCTION One of the most common questions we are asked at Catalyst is “How do I market on Facebook?” Some traditional marketers seem to understand My Space better than Facebook. One reason is that marketing on MySpace is largely page-centric, meaning that you set up a profile page for a brand much like you build your own website. But on Facebook, not so much. The essential difference in the way the two communities work, in my opinion, is that MySpace is an environment in which you primarily visit pages of others, whereas Facebook is more geared to using your profile page as a home base and having information brought to you. Not to say that you cannot visit pages on Facebook. You can. And you will. But because of the plethora of widgets and other applications available in Facebook, there’s far less need to go a wandering. That's a small part of what makes this site FAR more popular with professionals, because it isn’t so much a “seeking” environment – meaning I seek information and contacts – but rather more of a “having” environment – one in which news, functionalities, games, and other useful as well as divertive bits of data are brought to you. Because so many business people are on Facebook, interest in using it for marketing is strong – stronger (I think) than using MySpace despite MySpace’s significantly higher uniques and page views. What I want to do here is offer some basic information on how to market on Facebook using techniques especially suited to that environment. For simplification, I'm going to do some lumping together of options and say there are really three kinds of marketing on Facebook: profile centric, ad centric, and app or widget centric. 3
  • 4. Catalyst Reports: How You Market on Facebook Catalyst SF PROFILE CENTRIC MARKETING The following approaches and techniques center around marketing efforts that begin or take place primarily on Facebook pages specifically about a user or a brand. Brand Page: Anyone can build a page on Facebook, including a brand. Sign up, put together an appropriate business page, and you’re set. It probably makes more sense for a marketer to get a business page than a personal page. Facebook itself says a business page is better than a profile page because: These pages come pre-installed with custom functionality designed for each category. For example, a band Page has a music player, video player, discography, reviews, tour dates, a discussion board that the artists can take advantage of. Third party developers will also build an array of applications that they will compete for Page Admins to add to their Pages. Facebook Pages are also not subject to a fan limit and can automatically accept fan requests.i In addition, savvy marketers can create an attractive environment – with graphics and colors and video and photos and of course text that can fit the brand standards of most brands. (Taken from the Facebook Advertising Site) 4
  • 5. Catalyst Reports: How You Market on Facebook Catalyst SF But now what? First, a bit of language distinction. You “friend” people, you “fan” brands. The thing is, for most brands, the number of people who will make an effort to find your page and fan you is probably fairly limited. Some brands will get lots of friends, others not. Don’t hold your breath unless you are going to make a concerted effort to create an environment with valuable experiences. Of course, that’s true on MySpace as well. It’s also true that there are some unique viral aspects of Facebook that will help spread the word of your brand page. When you are fanned by someone, the news of that friending will probably appear in the “Newsfeeds” of everyone in that person’s circle (unless your fan opted out of this feature.) The Newsfeed is usually found on the center of the user’s start page, and informs her of what she and her friends are up to. (Taken from my Facebook Start Page) Getting in Newsfeeds could prove very valuable for some brands, let’s say…adidas®, but perhaps less valuable for others, let’s say…Sno-Bol® Liquid Toilet Bowl Cleaner. That’s because the news will only have value to the extent that the brand itself is compelling enough to the Newsfeed viewers that they will click on it. Speaking for myself, I will be more likely to click on Scion® than Oxydol®. Another interesting viral feature of Facebook is the Minifeed, which appears on the profile page of the user and lists the things that the individual has done recently. News that a person has fanned your brand will also appear here. Ditto when the person performs an action on your page. The people who visit the 5
  • 6. Catalyst Reports: How You Market on Facebook Catalyst SF profile will see it. Some may click the news of the fanning. But don’t expect the number of people who do that as a result of the average profile will be enough to fill a stadium. (Taken from my Facebook Profile Page) Hey, I’m not poo-pooing it, it will get you some members. But if you think in millions like I do, you’re not gonna get there with just this. But every little helps. And it mushrooms of course, over time. If three people fan you and each generates three more fans, and so on, you get that exponential growth curve we all know and love. Do all this. Absolutely. But once you have a profile and are getting a trickle of fans, there a number of other things you can do to boost your brand communication. Here are four of the most important ways: Founding a Group: Brands in Facebook can create groups and invite others to join them. To take a simplistic example, suppose Honda® was trying to reach “tuners”, people who buy cars and modify them for better performance. Yes, there's a lot more to being a tuner than that, but you get the idea. There is a very specific demographic profile that has a high composition of tuners. By creating a tuner group and inviting likely suspects of tunerdom, Honda could build an environment that would allow them to dialogue with this audience effectively. 6
  • 7. Catalyst Reports: How You Market on Facebook Catalyst SF Here's an example of an independent tuner group, for reference: (Taken from the Ninja Tuners Facebook Group Page) With this as an example I bet you can see how a brand like Honda might want to build a group of its own. As the creator of a group you will have some control over the content. Ensure you use it to make a better consumer experience rather than a shilling platform. Or all your fans will go away. The key issue here is creating an environment of value to the audience. No one is going to sit still to watch Sell-a-thon commercials. But groups can be of enormous value to members. If you are a member of Facebook, do a group search for a group of sneaker collectors. I have no doubt that a Nike®- or adidas-sponsored sneaker collector group could garner thousands of members with the right content and inducements, for example advanced access to new shoes. O-Cel-O® sponges might have more difficulty acquiring group members. But I am certain that some creativity applied to the O-Cel-O challenge could also make a group of value and interest to the target. Joining a Group: Brands can communicate in groups they crate or sponsor. If there are ways to add value to the discussion, you comments may be most welcome. But too much overtness or commercialness in your communication stream may get you kicked out of a group or have your entire presence in Facebook shut down. The Facebook people don’t mess around. They are very committed to the idea of consumer defined experience. The next tool was a complete mystery to me until I read the excellent Bible of Facebook Marketing by Justin Smith. Thus I publish a portion of his entry below verbatim: Joining a Network: Facebook Networks are like group pages for everyone who’s a member of an Educational, Work, or Geographical network. While no Facebook members “own” any 7
  • 8. Catalyst Reports: How You Market on Facebook Catalyst SF pieces of network pages, network pages offer 1) another way for users to discover events, posted items, and marketplace listings, and 2) discussion forums and walls which any members can post to. Network pages are probably the most commonly accepted places to spam in Facebook. While you can post there, keep in mind that your messages may be considered spammy even if they’re real and relevant.ii Event Marketing: As with groups, event marketing allows Facebook users to invite people to real or virtual world events. For example, a vodka brand could invite people to a vodka tasting in a real bar in a city or group of cities. Events automatically receive a special page on which you can put in all the necessary and tempting details. You can invite all your fans to an event, and the page even collects RSVPs if you want to anticipate crowds and needs. AD CENTRIC MARKETING The next several approaches discuss advertising options on Facebook. One of the advantages of advertising in an environment like Facebook is that the options for highly precise contextual, behavioral, and demographic targeting are legion. Here are some highlights. Whereas the tactics in the profile-centric section of this white paper are more geared to the hands-on marketer – one who is herself trying to integrate the brand and its messages into the fabric of Facebook- - there are also a variety of other tools to consider. Many are simply Facebook versions of other forms of Internet advertising and Google Ad Sense. Here are some of the majors. Beacon: Probably the most famous marketing tool on Facebook, Beacon is the system in which users’ purchases and actions on sites OUTSIDE OF FACEBOOK were published as news in Minifeeds and Newsfeeds. Started last November, the system is a sort of “keeping up with the Joneses” application that tells your friends what you just bought or did. The equivalent of how years ago some people would honk their horns in the street to brag to the neighbors when they brought home a new car. Imagine yourself on Facebook, minding other people’s business in the Newsfeed, and you see, “Elaine just bought a St. John knit set at BlueFly™." Intrigued, you hustle on over to BlueFly and buy one yourself. Beacon had problems in the beginning, principally because it was an opt-out system, rather than an opt- in. In one widely reported scenario, a website providing the purchasing info to Facebook deployed a pop-up essentially asking, ‘do you wanna opt out?’. Apparently, a lot of people didn’t understand or notice. And the result was that, in one instance, a husband’s jewelry purchase was broadcast to his personal network – including his wife, who was the intended recipient of the gift. 8
  • 9. Catalyst Reports: How You Market on Facebook Catalyst SF Now, there was more damage here than a spoiled gift. It also led to rumors among those who read about it that the jewelry was not for his wife but for someone else. And a character is impugned by a marketing app. To their credit, Facebook responded quickly with program changes that, in a nutshell, made it an opt-in instead of an opt out. One of the consequences of trying new things is that people screw up. Fortunately the transient nature of web content and applications is such that things can get fixed quick. Responding quickly was incredibly important because there were thousands of people very ticked off, and activist group MoveOn.org was even driving a petition to stop the practice. Since the jewelry and other incidents occurred last December, Facebook has changed the way it works. As they describe it on their site, “When you send an action to Facebook, the user is immediately alerted of the story you wish to publish and will be alerted again when they sign into Facebook. The user must proactively consent to have a story from your website published.” iii Personally, I am not a fan of Beacon. The people at Facebook pitch it as a service to customers (“Enable your customers to share the actions they take on your website with their Facebook friends.”) I view it as an invasion of privacy, regardless of the changes. Target does not broadcast my Swiffer® Mop purchase on a billboard, why on earth does Facebook? That said, it should be pointed out that I am a Baby Boomer, and we tend to have very high standards for privacy that younger generations do not. Beacon’s certainly better than it was in terms of privacy. Well anyway. You may have no problem with any of this. Social Ads: What Social Ads does it that it delivers product information in a Newsfeed and Minifeed when people perform an act related to the product advertised. If I told people I was going motorcycling, then that statement might get paired with a text ad providing info on where to buy a specific brand of motorcycle, or for a local cycle shop. You can, by the way, opt out of this easily. Here’s how Facebook pitches it: Reach the right people. Instead of creating an advertisement and hoping that it reaches the right customers, you can create a Facebook Social Ad and target it precisely to the audience you choose. The ads can also be shown to users whose friends have recently engaged with your Facebook Page or engaged with your website through Facebook Beacon. Social Ads are more likely to influence users when they appear next to a story about a friend's interaction with your business.iv Social Ads offers a broad range of demographic targeting options. Obviously, the closer the post is related to your brand, the better it will convert. You buy Social Ads with a self service application on the 9
  • 10. Catalyst Reports: How You Market on Facebook Catalyst SF order of Google Ad Words or Yahoo Search. They can be bought by CPC or CPM. As such, it appears to be an especially good tool for local retailers as well as larger brands. (Taken from the Facebook Advertising Website) The key distinction from a privacy perspective is that the ads are paired with posts made through the Facebook environment. If you are willing to have your action posted in Facebook pairing it with an ad doesn’t seem a breach of privacy. To me. You can also place such ads next to Beacon driven announcements. Use your judgment there. I don't opt out. I think Facebook needs to make money somehow, and this seems an excellent way to do it. WIDGETS AND APPLICATIONS Widgets/Applications: Ah, widgets, the media darlings of H2 2007. Let me start by saying that I am very pro-application, pro-widget. The idea that you choose the information and functions that are brought to you on your pages is great. There are tens and tens and tens of thousands of widgets out there. No one has any idea of the exact count. Some are in incredibly broad usage – Slide’s photo application is an example. Something like half of the Facebook users have this app in their Facebook presence. Another is FunWall, a service that soups up your comment wall with multimedia. But what’s interesting is that with all this supply of widgets and apps, relatively few brands have really been able to take advantage of this phenomenon in a giant way. Why? Because they either haven’t tried or they haven’t done it right. I’m gonna focus on “haven’t done it right.” Let’s start with the example of Sony®’s Christmas Snow Globe. I should tell you that I had never heard of the snow globe until I did a search on Facebook marketing tips and found a post by Tim Faulkner on Valleywag. 10
  • 11. Catalyst Reports: How You Market on Facebook Catalyst SF Here is a picture of Snow Globe: v (Taken from ValleyWag) Snow Globe was pretty but got less than 500 downloaders. Why? There’s no point in my even trying to describe this better than Rodney Rumford did at FaceReviews, so I will print his comments verbatim: Here is what is right about the Sony Snowglobes application: * Creative idea * Allows self expression and customization * Visually exciting * Uses notifications & mini-feed correctly Here is what is wrong with the Sony Snowglobes application: * No tabbed navigation * No clear way to invite friends (I can’t believe they missed that!) * It does not remember that I created a globe (very frustrating) * After i create and send a globe i can’t navigate anywhere else (like to make a new one) * No way to see which snowglobes my friends have created * Text instructions are too long. * Only allows for Christmas snowglobes. Too short of a product lifecycle window * It makes me take an extra step to add the snowglobe to my profile page * They promote 3 other apps in a very visually dominating way on the homepage (none of which have any success) * The about page does not even have an image of what the app does. DUH! * The profile page does not have messaging that makes we want to add the app. * No one from Sony or their ad agency has responded to any of the reviews written on the applications wall.vi There you have it. 11
  • 12. Catalyst Reports: How You Market on Facebook Catalyst SF You can do this right, but it’s tough. Not tough and therefore don't do it, but rather tough and therefore you should get help from someone who knows the space well. Frankly most brands need the help of a company that lives eats sleeps breathes social media. The key is finding an idea that has real consumer value, and then making it easy peasy to viral. Not all Facebook applications fall into the category of “widgets”. When most people think of widgets they think of “gadgets” – little doo-dads that do fun things like turn pictures into slide shows. There are other more serious sorts of applications that do significantly more. For example, we have a client called Real Time Matrix that offers a “Vortex” modular unit AND a VortexMe Facebook app on which it lives in Facebook. What is different about Vortex is that it is essentially a more serious application – no vampires here. It delivers real time content related to a particular topic to the user’s desktop or pages on Facebook, iGoogle, or Netvibes. Video, audio, text, all linked to their original locations online. A number of publishers have adopted this platform already, and brands are beginning to as well. It really is worth a look and I will provide more info Monday. Real Time Matrix and other companies that develop more serious apps are a critical part of why Facebook has become so useful to business people. App Sponsorships: But let’s take another example. Also from Sony. Sony Studios rebranded that popular and (to those of us whom are sane) exasperating app called Vampires, which is from RockYou! They rebranded it as part of their launch strategy for the Halloween picture 30 Scary Nights. Results? Jeremiah Owyang, a great analyst at Forrester, reported the following results on his blog: The campaign was only live for 3 weeks, and there were 59,100 sweepstakes entries. (success was deemed at 10k, this clearly moved beyond that)The visits (I don’t know if they were unique or repeated) were 11,642,051 for the bite page, and 17,652,567 for the stats page (I believe these are part of the interactive experience of the game.vii This time Sony clearly got it right. They leveraged a pre-existing community and an app that had already proven its worth to consumers. So should you make your own widget or other app? Perhaps, though perhaps you should consider sponsoring an existing one instead. Or doing both. But again, getting the counsel of a company that has social media in its DNA is critical. You can’t wing widgetry or widget sponsorship. Widget Advertising: A couple of companies are offering graphical and text ads on their networks of widget applications. Generally this is a REACH play, cheap tonnage. There is a role for that for some brands. My understanding is that CPMs are running in the $2-$3 range, which is good eatin’ these days. You can target by site and by some demo info, as well as activity level on Facebook. 12
  • 13. Catalyst Reports: How You Market on Facebook Catalyst SF Interestingly, one can also advertise widgets in these widget ad networks, which could really grow your install base if your app is any good. Here are a couple of examples I found: (Taken from the Widget Summit website) (Taken from the Gigya web site) MAJOR PROGRAMS So here’s the one some of you are waiting for. There are lots of brands that don’t have the people resources to make events and participate in groups and buy key words. Facebook is certainly willing to build a program for a large budget that involves any combination of the above or maybe custom tools. My understanding of what constitutes large is $500K+. CONCLUSIONS AND ACKNOWLEDGEMENTS Justin Smith, the creator of a wonderful site called Inside Facebook (http://www.insidefacebook.com) offers a veritable catalogue of marketing methods and specific details on his site. Far more than the top line I have provided here. His comments are particularly relevant for brands who embrace the concept 13
  • 14. Catalyst Reports: How You Market on Facebook Catalyst SF of guerilla marketing, whereas I try to focus solely on the needs of giant brands. But no matter how big or small you are, you owe Justin’s site a visit. He's got plenty for big brands as well. I am very thankful for his willingness to provide such info on his pages because it allowed me to enrich the content in this post, and set me straight on two misconceptions I was under. I am also grateful for the efforts of the other excellent writers and their posts I referenced in this document. Also, I want to say that many traditional marketers will be put off by the number of options and the seeming complexity of directions you can go on Facebook. Actually, it may really frighten you to know that there are a number of OTHER tools that I didn’t mention above. There’s no one standard executional platform like a :30 TV ad in social media. But the beauty of that is you get to develop a program that is PERFECT for your situation. i Find the complete post here: http://www.facebook.com/business/?pages ii Find the complete post here: http://www.insidefacebook.com/2007/12/09/inside-facebook-marketing-bible-24- ways-to-market-your-brand-company-product-or-service-in-facebook/ iii Find the complete post here: http://www.facebook.com/business/?beacon iv Find the complete post here: http://www.facebook.com/business/?socialads v Find the complete post here: http://valleywag.com/339675/why-big-brands-are-getting-facebook-wrong vi Find the complete post here: http://valleywag.com/339675/why-big-brands-are-getting-facebook-wrong vii Find the complete post here: http://www.web-strategist.com/blog/index.php?s=vampires 14