Value of a fan
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This document summarizes the key findings from a two-phase research project conducted by Millward Brown and Dynamic Logic on the value of brand fan pages. The research found that while larger fan pages generally rated better, size is not everything. Maintaining trust through transparency, providing a variety of new and innovative content, and fostering a sense of community were found to be important differentiators. Regular posting, at least weekly, also tended to result in better fan engagement. The research provides best practices for marketers on how to optimize their use of fan pages.
Value of a fan
- 1. A project for the A project for the WFA DIGITAL NETWORK March 2011 The value Th l of a fan? f f ?
- 2. This is an abridged This is an abridged public version of learnings l i p p prepared for the World Federation of Advertisers. Advertisers Full report is available on request Full report is available on request to WFA members: http://www.wfanet.org/members_global.cfm
- 3. Some background g • Challenge posed by WFA’s Digital Network • MB & Dynamic Logic agreed to help find out “so what?” • Not about an arbitrary $ figure for media/ sales value • All about how to build brand and optimise fan pages • Bespoke reports already with participants – this report is an abridged overview of findings for industry learning • Many thanks to all WFA members who took part
- 4. Unique two phase research project: Unique two phase research project: combining two perspectives Phase 1 Phase 2 Marketers Brand Fans • How are they approaching • How and why are they the use of social media? the use of social media? using brand fan pages? using brand fan pages? • What do they expect from • Are fan pages improving social media? brand opinions? How?
- 5. WFA members’ view: brand value over business metrics What do you consider to be “the value of a fan”? 85% 85% % 80% 75% 50% 45% 15%
- 6. From liking g to love: How fan pages build brands b d
- 7. 96% spending 96% spending more on social Time and money versus expectation?
- 8. But unsure about But unsure about the returns Social media fan base ROI?
- 9. Fans already outspend non‐fans by over 4x. The y p y fan page challenge is to deepen the relationship Fans Non‐Fans 4% Bonding 1% 62% Advantage 19% 67% Performance 31% 83% Relevance 37% 100% Presence 50% 13.4% Share of wallet 2.8% Source: Brandz, 2010 global database
- 10. Qualitative learning about Qualitative learning about how to engage is available how to engage is available
- 11. Listening is key to success Ignoring social Thoughtfully integrated Jumping on media, program bandwagon — staying out of game "must be there" • Less relevant/current • Ability to listen to • Consumers see right and trustworthy consumers and through this — and it • Complete loss of understand their needs kills credibility control (consumers • Consumers co-own • Traditional marketing define the brand by the brand and approaches alienate themselves) evangelize consumers Source: Firefly Language of Love
- 12. Phase Two: Phase Two: Learning from our brands’ fans b d ’f • 24 fan pages from large companies • Categories included confectionery, alcoholic and non‐alcoholic drinks, personal p care and telecommunications • US, UK, Australia, France, Germany and Sweden plus d d l some global
- 13. Phase Two: Phase Two: Methodology Wall post: Wall post: "Dear BRAND fans, your opinion is important to us! Please help us improve Please help us improve this page by answering our short 5 minute survey."
- 14. We spoke mainly W k i l Visitors 5% to existing fans... g Fans 95% Virtually all page visitors y p g completing our surveys were registered fans. Fan Tenure (%) More than a year 9 They had typically been 7 12 months 7‐12 months 11 registered for 3‐4 4‐6 months 20 months. 2‐3 months 32 Less than a month Less than a month 19 Registered today 9
- 15. First thing we learned: we learned Size matters! But it certainly B i i l isn t everything… isn’t everything…
- 16. Bigger fan pages generally rated better Bigger fan pages generally rated better But number of fans doesn’t tell the whole story High Correlation: 0.28 FanIndex Rating R Low 0 500,000 1,000,000 1,500,000 # of Fans
- 17. The FanIndex rating is a composite g p measure Recommendation Overall opinion likelihood “Very favourable” “Very likely” FanIndex Rating Attention to brand Revisit likelihood posts “Very likely” “Pay a lot of attention, read them regularly”
- 18. We diagnose drivers of the FanIndex rating g g and then assess impact on brand measures Fan page Impact on attributes brand equity Impact on I t Fan page FanIndex brand content Rating appeal Benefits of Impact on being a fan b i f engagement t
- 20. Most pages we assessed are Most pages we assessed are delivering well on trust F Fan page attributes (agree strongly) % tt ib t ( t l ) % Easy to use and navigate asy o use a d a ga e 55 Trustworthy source of information 48 Clear and uncluttered 45 Fun and engaging content 43 Useful information 42 Stylish design 39 Wide variety of information 37 New and innovative New and innovative 36 Information I was looking for 35
- 21. The Language of Love has taught us: maintain trust through transparency Transparency Expertise Authenticity Familiarity Likeability Trust Source: Firefly Language of Love
- 23. Appear as news, never news never They must provide me h id with information, g advertising. good knowledge about the brand so h I ld h h that I could share that with friends like an ‘expert’ ‐Male, 19 Keep them K th guessing guessing about what comes next... t
- 24. Fans most value news & information; Fans most value news & information; also contests and offers F P Fan Page Benefits (Top Box) % B fit (T B ) % Latest news about the brand 62% New product information 61% Contests and giveaways 58% Sales, discounts, coupons and special offers l d d l ff 55% Allows me to show I like the brand 47% Enjoy reading other people’s thoughts and ideas 45% Access to free downloads and virtual gifts 41% I enjoy feeling part of a brand community 34% Allows me share my thoughts and ideas 32% It gives me a sense of status 13%
- 26. There’s no There’s no silver bullet silver bullet How you best build appeal will depend will depend on brand personality & objectives
- 27. Last but certainly i l not least: not least: Post P t regularly!
- 28. More frequent posts tend to result in a better More frequent posts tend to result in a better FanIndex rating High 3 2 1 FanIndex Rating Correlation: Correlation: R 0.46 4 5 0 10 20 30 40 50 60 Low # of Posts
- 29. Checklist h kl Contests/ Giveaways y New product product Expected info Fun Expected Differentiator Variety Community Differentiator Differentiator Regular R l posts Expected Off Offers Trustworthy Expected brand news Expected Innovation Interaction Differentiator Differentiator
- 30. Conclusions • Fans pages of all sizes can build equity and p g q y engagement, but as expectations increase, brands have to keep pace • Check your page against our expected checklist Check your page against our expected checklist • Then differentiate by going the extra mile in a way which will achieve your specific brand objectives • Post and comment frequently. Beware campaign mentality: fan pages that ‘go quiet’ can have a detrimental brand impact detrimental brand impact • Commit considerable resource: community managers?
- 31. Further research While this study has provided some fascinating initial insights, there is still much to learn. Millward Brown and insights there is still much to learn Millward Brown and Dynamic Logic hope in future to extend this work with p partners to explore areas such as: p • How responses to fan pages vary by category, country, user type • How attitudes to fan pages change over time How attitudes to fan pages change over time • How attitudinal responses to fan pages link to behavioural and engagement metrics g g • How fan page quality relates to efficiency of fan recruitment and retention
- 32. Further information For further information about this study, please contact: • WFA WFA Rob Dreblow r.dreblow@wfanet.org • Millward Brown/ Dynamic Logic Duncan Southgate Duncan.Southgate@millwardbrown.com Juan Manuel Hernandez JuanManuel.Hernandez@millwardbrown.com Contact MB or DL to conduct your own bespoke fan page assessment