Facebook has become a huge platform for marketers, yet it still lacks the sophisticated accountability and measurement methodology that market researchers are accustomed to on other advertising platforms. Laurent Flores and Kimberly Struyk of CRM Metrix have done some fantastic work on this topic, and we had a chance to ask them a few questions about the value of Facebook fans. ARF: Why has it become so important for brands to assess the value of their Facebook fans?Flores and Struyk: As the use of branded fan pages has exploded within the last two years, we need to understand if it is a worthwhile component within the media mix. While fan pages are free to set up and are a cheaper alternative to traditional advertising avenues, the price of running a page has actually expanded as the time, resources and capital required to maintain them increase. Unlike other Digital properties, Social Media moves at an exorbitant speed, growing the overall investment.Content creation and consumption are moving so fast that accountability has been somewhat overlooked until now. Due to this shift in marketing plans, assigning a value to a Facebook fan page justifies the time spent managing the page and linking that to how much consumer action was taken. Assessing fan page performance ultimately determines how much or how little it is doing for the bottom line while also revealing the page's role in a larger strategy).ARF: What are some of the key metrics brands should use to figure out the value of their fans?Flores and Struyk: Knowing the "value of a Facebook fan" is a hot topic, but many marketers do not have the tools to place a figure on what Social Media does for brands. From our primary research findings, there are underlying metrics that indirectly tie to value as suggested below. METRICS EXPLANATION Brand involvement profiling Investigates fan page campaign recruitment (in or out-of-market leads) Fan page awareness & media mix drivers Defines which vehicle(s) create high value behaviors that result in a great ROE Fan page activity type Describes the incremental actions taken by fans after visiting the fan page Content consumption profile Discovers content type(s) that drive a call-to-action Consumer ideation report Provides insight into if needs for visiting the page are delivered upon From an accountability perspective, these metrics help page managers determine future directions for a page by showing if a complete overhaul is needed or if the page is on track with fan expectations.ARF: What are some strategies brands can use their fan pages in order to transform their "fans" into "quality fans?" Flores and Struyk: There is not a "one size fits all" strategy that can be applied across all categories and brands; instead, the answer lies at a brand-by- brand basis. There is an overarching strategy that we caution against: The use of promotional content as a value strategy. In most cases, a promotion does capture new eyeballs, but on the flip side, promotions are a "get in, get out" acquisition that does not facilitate a need to fully absorb the brand experience. Therefore, this approach is typically unsuccessful in maintaining ongoing interest that converts fans into quality fans.However, on brand-by-brand basis, we suggest using a crowd sourcing/ ideation technique to understand strategies for achieving this type of conversion (e.g. BRANDED strategies are typically at the heart of why valuable fans originally involved themselves with the page).ARF: What predictions would you make for the future of branding on social network sites such as Facebook? How do you see the marketing value changing as we move forward? Flores and Struyk: Facebook must ensure that consumers form a positive opinion about commercialization: If they are not sensitive to this, the future may not be so optimistic. Below is a brief description of the potential future:Near Term Marketing Value:Campaign driven- Pages are no longer solely dependent on newsfeed updates for B2C conversations. Instead, interactive campaigns will be sporadically executed to recruit fans (special occasion content, interactive programs, etc.), augmenting the top of the purchase funnel.Microsite FB experiences- Fan pages will continue to mimic micro-experiences, perhaps overtaking brand website utilization rates to move the branding needle.Ecommerce expansion-With targeting features of FB advertising, transactions made directly on the platform will become more prevalent. According to Forbes magazine, the buy rate increases about 18 times when fans do not have to click through to a site to buy. This is ramped up even further by the Friend-to-Friend recommendation feature, which drives conversions at the bottom of the purchase funnel.Long Term Speculations:Similar to the recent timeline roll out, Facebook aspires that consumers touch the brand every day. Newer fan page capabilities may lead to possible scenarios that marketers will need to tackle.Social Pod Advertising- With the largest reach and active network across the world, Facebook will morph into an aggregator social media platform as the hub of interaction: YouTube, Twitter, Skype, Oodle, and Gamification (for example) will be housed within Facebook, challenging advertisers to work within a one stop social pod.ConTEXTual Mining Algorithm- Facebook may eventually develop an algorithm to analyze behavioral patterns that are a predictor of market status. Based on brand pages visited, wall conversations, liking (WOM) behaviors, referral source, etc., the algorithm will pinpoint the type of ads to serve (setting a new approach to brand building with awareness, equity building and purchase persuasion happening simultaneously).These are merely speculations for the future, but one thing we can be certain about is that it will be tricky to balance consumer expectations with marketer benefits on Facebook. Facebook and marketers must both take care to ensure that fans do not abandon Facebook because they feel bombarded by advertising.Want to hear more? Want to hear more? Laurent Flores and Kimberly Struyk will be speaking at the ARF Re:think 2012 Convention. Register Now
