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A project for the
            WFA DIGITAL NETWORK
               March 2011




The value
of a fan?
This is an abridged
public version of
learnings
prepared for the
World Federation of
Advertisers.
Full report is available on request
to WFA members:
http://www.wfanet.org/en
Some background
        • Challenge posed by WFA’s Digital Network
            • MB & Dynamic Logic agreed to help
   • 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
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?     using brand fan pages?
• What do they expect from   • Are fan pages improving
  social media?                brand opinions? How?
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%
From liking
  to love:
 How fan
pages build
  brands
96% spending
      more on social
Time and money versus expectation?
But unsure about
   the returns
Social media fan base ROI?
Fans already outspend non-fans by over 4x. The
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
Qualitative learning about
how to engage is available
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
Phase Two:
Learning from our
brands’ fans
• 24 fan pages from large
  companies
• Categories included
  confectionery, alcoholic and
  non-alcoholic drinks, personal
  care and telecommunications
• US, UK, Australia, France,
  Germany and Sweden plus
  some global
Phase Two:
Methodology

                Wall post:
           "Dear BRAND fans,
             your opinion is
            important to us!
         Please help us improve
         this page by answering
           our short 5 minute
                 survey."
We spoke mainly                             Visitors 5%

to existing fans...
                                           Fans 95%
Virtually all page visitors
completing our surveys
were registered fans.
                                          Fan Tenure (%)
                               More than a year     9
They had typically been             7-12 months     11
registered for 3-4                   4-6 months           20

months.                              2-3 months                32
                              Less than a month           19
                               Registered today     9
First thing
we learned:
Size matters!

But it certainly
isn’t everything…
Bigger fan pages generally rated better
But number of fans doesn’t tell the whole story

    High                                               Correlation:
                                                          0.28
     FanIndex Rating




   Low
                       0   500,000     1,000,000   1,500,000
                                     # of Fans
The FanIndex rating is a composite
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”
We diagnose drivers of the FanIndex rating
and then assess impact on brand measures

    Fan page                              Impact on
    attributes                           brand equity


                             Impact on
   Fan page       FanIndex
                               brand
    content        Rating      appeal


    Benefits of                           Impact on
    being a fan                          engagement
Starting with
the basics:
Trust is a
must have
Most pages we assessed are
delivering well on trust
               Fan page attributes (agree strongly) %


               Easy to use and navigate                       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        36

           Information I was looking for      35
The Language of Love has taught us:
maintain trust through transparency
                                   Transparency


                                                  Expertise
                    Authenticity




               Familiarity                             Likeability
                                   Trust


Source: Firefly Language of Love
Key
differentiators:

Variety,
innovation
and style
Appear as
news, never     They must provide me
                  with information,

advertising.       good knowledge
                 about the brand so
                that I could share that
                  with friends like an
                        ‘expert’
                       -Male, 19

Keep them
guessing
about what
comes next...
Fans most value news & information;
also contests and offers
                              Fan Page Benefits (Top Box) %

                    Latest news about the brand                                    62%

                       New product information                                     61%

                        Contests and giveaways                                58%

     Sales, discounts, coupons and special offers                            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%
Another key
differentiator:

A sense of
community
There’s no
silver bullet
How you best
build appeal
will depend
on brand
personality &
objectives
Last but
certainly
not least:

Post
regularly!
More frequent posts tend to result in a better
FanIndex rating
                      High




                             3             2                     1
    FanIndex Rating




                                                                     Correlation:
                                                                        0.46

                             4


                      5




                      0          10   20        30          40         50           60   70
                      Low                      # of Posts
Checklist                    Contests/
                             Giveaways
                                                         New
                                                        product
                                   Expected               info
     Fun                                                   Expected
 Differentiator

                   Variety                    Community
                  Differentiator              Differentiator
Regular
 posts
 Expected         Offers                        Trustworthy
                  Expected
                                                brand news
                                                        Expected
 Innovation           Interaction
 Differentiator         Differentiator
Conclusions
• Fans pages of all sizes can build equity and
  engagement, but as expectations increase, brands
  have to keep pace
• 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
• Commit considerable resource: community managers?
Further research
While this study has provided some fascinating initial
insights, there is still much to learn. Millward Brown and
Dynamic Logic hope in future to extend this work with
partners to explore areas such as:
• How responses to fan pages vary by category, country, user type
• How attitudes to fan pages change over time
• How attitudinal responses to fan pages link to behavioural and
  engagement metrics
• How fan page quality relates to efficiency of fan recruitment and
  retention
Further information
For further information about this study, please contact:
• 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

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Value of a Fan

  • 1. A project for the WFA DIGITAL NETWORK March 2011 The value of a fan?
  • 2. This is an abridged public version of learnings prepared for the World Federation of Advertisers. Full report is available on request to WFA members: http://www.wfanet.org/en
  • 3. Some background • Challenge posed by WFA’s Digital Network • MB & Dynamic Logic agreed to help • 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: combining two perspectives Phase 1 Phase 2 Marketers Brand Fans • How are they approaching • How and why are they the use of social media? 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 to love: How fan pages build brands
  • 7. 96% spending more on social Time and money versus expectation?
  • 8. But unsure about the returns Social media fan base ROI?
  • 9. Fans already outspend non-fans by over 4x. The 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 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: Learning from our brands’ fans • 24 fan pages from large companies • Categories included confectionery, alcoholic and non-alcoholic drinks, personal care and telecommunications • US, UK, Australia, France, Germany and Sweden plus some global
  • 13. Phase Two: Methodology Wall post: "Dear BRAND fans, your opinion is important to us! Please help us improve this page by answering our short 5 minute survey."
  • 14. We spoke mainly Visitors 5% to existing fans... Fans 95% Virtually all page visitors completing our surveys were registered fans. Fan Tenure (%) More than a year 9 They had typically been 7-12 months 11 registered for 3-4 4-6 months 20 months. 2-3 months 32 Less than a month 19 Registered today 9
  • 15. First thing we learned: Size matters! But it certainly isn’t everything…
  • 16. Bigger fan pages generally rated better But number of fans doesn’t tell the whole story High Correlation: 0.28 FanIndex Rating Low 0 500,000 1,000,000 1,500,000 # of Fans
  • 17. The FanIndex rating is a composite 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 and then assess impact on brand measures Fan page Impact on attributes brand equity Impact on Fan page FanIndex brand content Rating appeal Benefits of Impact on being a fan engagement
  • 20. Most pages we assessed are delivering well on trust Fan page attributes (agree strongly) % Easy to use and navigate 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 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 They must provide me with information, advertising. good knowledge about the brand so that I could share that with friends like an ‘expert’ -Male, 19 Keep them guessing about what comes next...
  • 24. Fans most value news & information; also contests and offers Fan Page Benefits (Top Box) % Latest news about the brand 62% New product information 61% Contests and giveaways 58% Sales, discounts, coupons and special offers 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 silver bullet How you best build appeal will depend on brand personality & objectives
  • 28. More frequent posts tend to result in a better FanIndex rating High 3 2 1 FanIndex Rating Correlation: 0.46 4 5 0 10 20 30 40 50 60 70 Low # of Posts
  • 29. Checklist Contests/ Giveaways New product Expected info Fun Expected Differentiator Variety Community Differentiator Differentiator Regular posts Expected Offers Trustworthy Expected brand news Expected Innovation Interaction Differentiator Differentiator
  • 30. Conclusions • Fans pages of all sizes can build equity and engagement, but as expectations increase, brands have to keep pace • 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 • 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 Dynamic Logic hope in future to extend this work with partners to explore areas such as: • How responses to fan pages vary by category, country, user type • How attitudes to fan pages change over time • How attitudinal responses to fan pages link to behavioural and engagement metrics • How fan page quality relates to efficiency of fan recruitment and retention
  • 32. Further information For further information about this study, please contact: • 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