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A project for the 
              A project for the
             WFA DIGITAL NETWORK
                March 2011




The value 
Th     l
of a fan?
 f f ?
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
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
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?
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 g
  to love: 
 How fan 
pages build 
  brands
  b d
96% spending 
      96% spending
      more on social
Time and money versus expectation?
But unsure about 
But unsure about
   the returns
Social media fan base ROI?
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
Qualitative learning about 
Qualitative learning about
how to engage is available
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: 
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
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."
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
First thing 
we learned:
we learned
Size matters!

But it certainly 
B i         i l
isn t everything…
isn’t everything…
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
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”
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
Starting with 
the basics:
the basics
Trust is a 
must have
must have
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
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 
innovation
and style
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
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%
Another key 
differentiator:

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

Post 
P t
regularly!
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
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
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?
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 
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

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