New Study: Facebook Trumps Traditional Media in Retail
It is not hyperbole to say that Facebook may be to this century what TV was to the last. In 2009, only Victoria's Secret and its PINK division could boast a Facebook fan-base of more than 1 million "likers". But by the end of September 2010, another 14 brands surpassed the 1 million mark, with several more joining since.
Media Logic, an agency specializing in marketing for a social world, audited 100 United States retailers in their social marketing strategies between July and September of 2010, including the absolute and relative growth of the fan and follower bases of these retailers.
The results speak to the power of Facebook: The retailers surveyed by Media Logic with 1 million or more likers averaged nearly 40 percent growth between mid-July and mid-September. The top-10 retailers in Specialty Apparel averaged close to 50 percent growth.
Additional findings from the study include:
-- Facebook rules! Of the 100 retailers surveyed, only one, BcBgMAXAZRIA, had more Twitter followers than Facebook Likers.
-- But sometimes Twitter rules! Though Facebook dominates in absolute numbers, and generally demonstrated stronger growth during the survey period, a few retailers in the department/discount sector -- including CVS, Macy's and Staples -- saw strong Twitter growth, as did Specialty hardline retailer Toys "R" Us.
-- Blogs, microsites, commerce sites and stores are all being swept up and into the social revolution. Retailers are connecting their online and real-world properties into what are effectively media networks owned and operated by the brands.
-- Promotions in the form of social games and contests, hosted both within Facebook and on microsites, are drawing huge numbers of participants and, thus far, tireless engagement. Fans and followers must now be considered significant cooperative marketing partners as they remarket the brand messages.
-- More than one quarter of the brands surveyed saw their Facebook fan base grow by 30 percent or more between July and September 2010. Four brands, Michael's Crafts, Dress Barn, Kenneth Cole and New York & Company, saw a greater than 100 percent rate of growth.
-- Big brands buy fans. It has become common practice for retailers to drive new non-likers to a promotional Facebook tab where they are asked to like the page in return for a gift or special access to promotions or contests.
-- Beyond simply attracting followers, successful marketers in the three strongest sectors --Specialty Apparel, Department/Discount, and Recreation -- are pursuing distinctly different strategies for attracting user-generated content and triggering social remarketing (sharing,retweeting, liking, etc.). Marketers in Specialty Hardlines seem to still be searching for a standard successful social marketing formula.
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