Omniture® “Likes” Facebook
Facebook has established a global partnership with Omniture to create best-in-class solutions for measuring and optimizing Facebook campaigns. This guide is for online marketers who want to leverage the growing popularity and influence of Facebook to expand their customer base, increase revenue, and maximize return oninvestment for their ad spend. It provides an overview of the latest tools available for measuring and optimizing your marketing campaigns.
Created at Harvard University by Mark Zuckerberg and a small group of fellow computer science students, Facebook has “gone viral” as a social networking website since its introduction in 2006. It currently has more than 400 million active users worldwide (100million of these in the United States). It is estimated that Facebook users spend a cumulative 8 billion minutes per day on the Facebook network.
According to recent surveys, 40% of active users in the United States are under 25 years old, and 23% are between 26 and 34, while those over 35 are the fastest growing demographic.1 The typical Facebook user is connected to 130friends. TechCrunch has recently reported data from comScore that Facebook web traffic is now nearing that of Yahoo!. It has already surpassed Yahoo! in monthly page views, and will soon overtake that search engine’s mark of more than 594 million unique visitors. 2 Of the 69% of online shoppers who regularly use social media sites, the overwhelming winner in terms of shopper presence is Facebook, withmore than 50% of respondents saying that they use Facebook regularly. 3
Tapping into the enormous Facebook opportunity
Facebook ad spending in the United States went from $335 million in 2009 to $450 million in 2010 (a 34% increase). Facebook ad spending worldwide was even more impressive, going from $435 million in 2009 to $605 million in 2010 (up 39%). Non-U.S. ad spend went up from $100million in 2009 to $155 million in 2010 (a 65% increase).4 eMarketer predicts that in the United States overall online social network ad spend will increase in 2011 to $1.395 million—and this is just for paid advertising, which is a fraction of total spend.
Perhaps because of explosive growth, a lack of effective measurement tools, or both, fewer than one in five marketers say thatthey measure the ROI or business impacts of their social media investment. In fact, in a recent Forrester study, marketers admitted that they are not very good at measuring social media, rating their efforts at 4.5 out of 10. 5 Yet it is estimated that nearly 20% of marketing budgets will go to social networking sites in the next five years.6 By 2014, social media spending is expected to be $3.1billion—over $1 billion more than email spending.7
1 2 3 4 5 6 7 eMarketer, Younger Americans Still Fueling Facebook, January 2010 eMarketer, What’s Cooking with Facebook’s Recent Growth, February 2010 ForeSee Results, 2010 Social Media Report eMarketer, Social Network Spending Shifts, December 2009 Forrester Research, Top Social Computing Predictions for 2010, December 2009 eMarketer,Marketing Budgets Will Spiral Toward Social, February 2010 eMarketer, Maximizing the Email and Social Connection, November 2009
Marketers need to l everage social media connections to create engaging relationships with their target c ustomers.
Capitalizing on the Facebook marketing opportunity
With 400 million worldwide users and 100 million users in the United States, Facebookclearly presents an amazing opportunity for online marketers, and it is only getting better with each passing month. Over 50% of the user base goes onto the site every day, and users spend over three times as much time on Facebook as they do on the next-most popular site. But the popularity of Facebook presents marketers with some interesting challenges as well. Users spend more time engaging on...