why should brands use facebook? march 2011 madrid

Madrid, March, the 16th, 2011

Why should brands use Facebook?Thomas Jestin

Co-founderKRDS

Pablo AsencioCountry-managerKRDS Spain

1990-2009: $250 millions spent in TV ads during the Super Bowl

2010 : Pepsi stopped

TV ads

+1,5 millions fans in one weekend

Video viewed and commented more than 9 millions times

Davide GrassoNike's chief marketing officer

“Facebook is the equivalent for us to what TV was for marketers back in the 1960s.

It's an integral part of what we do now.”

“Facebook is the future”

“Facebook is a must-have for digital advertising and brand building”

Advertising budget : $9 billions/year

Innovation Outreach Venturing Day, janvier 2010

2009 - 2010

x 10Advertisers’ spendings

Search

TVRadio PressBillboards Internet

Global advertising expenses

November 2010

25% of

viewed pages

with ads

12.9 millions unique visitors / month

27% of country population

44% of online country population

6,5 millions log in on a daily basis

The Facebook Marketing Toolbox

Europe 2011

The Facebook Marketing toolbox - Europe 2011

Page Application

Engagement AdsStandard Ads

Social Plugins

Facebook Connect

Places & Deals Credits

Since May 2007

Facebook opens itself to third-party developers

Time to reach 50M users

13 years 4 years 3,5 years 20 days

From 0 to 1,5 millionusers in 30 days

1600 Candidates

150 000 voters

Universal AZ music label

Social Plugins Facebook Connect

Since Nov 2007Self-serving platform

« Ads should be content ! »

Engagement AdsSince 2008

VideoEvent

SamplePoll

2011

Places & Deals

Credits

2011

Facebook Page

Facebook Page: a dual strategy

Get fans Interact with fans

Why should a brand get fans?

1. Your potentiel customers use Facebook!

13 - 171.2M

18 - 24 2.7M

25 - 344.3M

35 - 442.8M

45 – 541.2M

49% Men

51% Women

+ 54 0.7M

…messages to its fans:

- for free

- repeatedly

2. Because a brand can send…

…messages that include pictures and brand logo…

- like

- comment with their real identity

- share with their 130 friends

…messages that fans can:

…and you can monitor engagement

3. Because more than 33% of fans say their purchasing intent has increased

since they became fans

You buy this

4. Because your competitors are outperforming you

5. Because you need to be ready to outcompete bad buzz

in Facebook search queries

6. Because you know who your fans are

Whydoes a userfan a brand?

1. To get promotions & deals

2. By love of the brand

3. To keep up with the

brand’s news

Awareness

Education

Serious engagement

Desire

Facebook Marketing Funnel

Fans base growth

Simple engagement

French tour operator

(January 2011)+ 120 000 likers in 9 days !

DOCreate an application & buy traffic

1. Facebook Ads buying(CPC-optimized by KRDS)

2. A really compelling incentive to click the « like button » : to be eligible for a sweepstake to win holidays

3. A very simple flow: users can play in 3 clicks

4. Inspiring prizes: 2 week holidays to be won per day for 15 days

« I’ll play again and again!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! »

5. A real incentive to share the application with friends:

« if one of your invited friends ever wins, you win as well »

+ 250 000 likers in 10 days ! (early March 2011)

DOCreate an application & buy traffic

DOLeverage your online audience seriously

DOLeverage your offline audience !

DOLeverage your offline audience !

Awareness

Education

Simple engagement

Serious engagement

Desire

Call to action

Story tellingFans comment, like and share

Facebook Marketing Funnel

DON’TLoose control of your wall

Awareness

Education

Serious engagement

Desire

Simple engagement

Call to action

Users complete a purchase

Facebook Marketing Funnel

Brand advertising

Web/foot traffic driving, data collection

4 possible strategies

CRM

Monetization/f-commerce

Paid Media

OwnedMedia

EarnedMedia

1. Your target audience is on FacebookPaid

Media

MenWomen

6,6M 6.3M

51% 49%

13 - 171.2M

18 - 24 2.7M

25 - 344.3M

35 - 442.8M

45 – 541.2M

+ 54 0.7M

2. Unheard-of

targeting capabilitie

s

Paid Media

3. Viral effectEarnedMedi

a

4. Fans become your ambassadors

EarnedMedi

a

5. Easier than ever to subscribe to a brand’s news

OwnedMedi

a

1 click required only

OwnedMedi

a

6. You know who your fans are

3 key success factors

Rules are evolving quickly

LegalKnow-how

Conception Know-how

Technical Know-how

facebook.com/krds contact@krds.fr

Last word

Use peace time wisely to strengthen your Facebook presence

Gracias

Madrid, March, the 16th, 2011

Thomas.Jestin@krds.frCo-founder

Pablo.Asencio@krds.frCountry-manager Spain