marcus wareham - facebook - 26 january 2011

Marketing reorganised around people

Marcus Wareham 26th January 2011

Today’s web is about people

Businesses are reorganising around people

Reorganising around people delivers results

The web is being rebuilt around people

10’s

Discover Search

00’s

Browse

90’s

600M users worldwide

Globally, borders are being replaced with connections

Companies that connect people have taken off globally

V Kontakte 104 M users

Orkut 28 M users

QZone 305 M users

Mixi 20 M users

Facebook 600 M users

Industries are transforming by reorganising around people

Gaming is reorganising around people

FarmVille Xbox

News is reorganising around people

NY Times Twitter CNN

of news sharing occurs through social media

43%

Music is reorganising around people

Pandora Spotify

Shopping is reorganising around people

Amazon Groupon

increase in average order value

up to 50%

Institutions are reorganising around people

Red Cross British Monarchy

of all government agencies are using at least one social networking tool

66%

This is all happening in an age of rapid technology innovation

Incumbent Entrants

iPad, iPhone iTouch, iTunes

Android, Chrome, Youtube, web Apps

Kindle, electronics & general merch

Motion sensors in gaming inputs

Social graph, credits, real-time

communications

Social gaming, virtual goods, offers

Social group buying

Location-aware mobile services

Source: Morgan Stanley Research

Inte

rnet

Use

rs (M

illio

ns)

0

400

800

1200

1600

2000

GLOBAL MOBILE VS. DESKTOP INTERNET USER PROJECTION 2007 - 2015

MOBILE INTERNET USERS

DESKTOP INTERNET USERS

Mobile has a steeper adoption rate than any past technology

These social experiences are following us throughout our lives

TV Car Phone iPad

Who. What. When. And now Where.

The web is reorganising around people

Businesses are reorganising around people

reorganising around people delivers results

Businesses are reorganising around people

Product Development

HR

Customer Service

Customer Insight

Marketing

“…technology-enabled collaboration with external stakeholders helps organizations gain market share from the competition ”

- McKinsey & Co

Product development is being reorganised around people

Product development is being reorganised around people

Human resources is being reorganised around people

Customer service is being reorganised around people

Customer insights are being reorganised around people

Marketing is being reorganised around people

Marketing has always been a mix of paid, owned and earned

Public Relations

Word of Mouth

OPEN

Websites

Store fronts

Print

Television

The ideal is more earned at the scale and predictability Facebook lets you create “earned” at unprecedented scale

Fans are just the beginning

brand fan

Facebook population

Fan base 500K fans

Fans are more valuable when they impact their friends

Friends of fans

60M friends

My friend likes this brand

Ads with friends

This is the NEW word of mouth - it is twice as effective

Meg Griffing Sloan, Becca Foy, and 14 other friends like Heineken

VS

1.6X lift in brand recall

2X lift in message awareness

4X lift in purchase intent

Starbucks

Facebook population

Fan base 19M fans

global data

This is word of mouth at unprecedented scale

Friends of fans

527M friends

Brand

Facebook population

Fan base XXM fans

{insert client logo

here} Friends of fans

XXM friends

Here is what it looks like for your brand

Facebook has two ways to access the new word of mouth

Premium

Marketplace

1 1

2

3

4

Premium Ads drive brand impact

Premium Ads drive brand impact

•  100% Share of voice •  Guaranteed delivery •  Users don’t have to leave

their home or profile page •  Most trafficked pages on

Facebook •  Engagement sparks

organic sharing to the user’s friends, giving advertisers viral impressions

Marketplace Ads drive action

1

2

3

4

• Auction-based pricing • Drive actions

• Off-site clicks • Transactions • Game installs

• E-commerce sales • Kick-start fan base

use circles as the key? show photos or events pages

PREMIUM

MARKETPLACE

BENEFITS

Action

Brand 6

3

Premium Ads offer unique benefits

Reach Block

Target Block

Target

Duration

1-3 Days 6 Weeks

Broad Reach

Demographics or Geographic Targeting

Campaign Sustained

Always-on strategy

There are four Premium Ads strategies to address your goals

Launch products Timely messages

Keep community engaged Maintain brand perceptions

The web is reorganising around people

Businesses are reorganising around people

reorganising around people delivers results

A focus on people delivers the results brands care about

+6% intent

2X preference

foot traffic

+9M recommendation

+11% awareness after

product launch

4X offline

2X online

12%+ increase in brand awareness

7%+ increase in purchase intent

2x #of mentions over World Cup sponsor

6% more likely to purchase Umbro sportswear and football shirts

*Result is better than 96% of similar studies conducted by Nielsen according to their normative data.

2x increase in traffic to levis.com

11% increase in awareness of Krave cereal after product launch in UK

9M+ recommendations for Charity

How could you build around people?

Insert brand logo

[Insert client recommendation]

Approach depends on client scenario

SCENARIO ONE:

Premium to drive awareness 1

Marketplace to build a fan base

2

Premium to reach friends of fans before launch

3

Marketplace to reach fan goal 1

Stay top-of-mind. Premium for big impact, Marketplace for light reminders

2

Premium to drive awareness in line with seasonality

3

SCENARIO TWO:

Product launch

Drive constant awareness

The web reorganised around people creates new opportunities

Businesses are transforming how they relate to people and operate

Companies recognizing this shift are gaining strategic advantage

Appendix

Marketers are reorganising around people (option 2)

Experiences are better when reorganised around people

Home Page: 7.25 hrs/month

Photos: 3B/month