The document discusses social media and brands. It finds that:
1) Successful social media brands tend to already be strong brands with loyal customers and fans.
2) Mass media coverage is often needed to help social media campaigns gain critical momentum.
3) Fans and followers on social media are an "end" rather than a "means" - brands should focus on engaging existing customers rather than viewing fans as a way to build a brand.
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Pov Social Media Bubble0210
1. Millward Brown: Point of View
Social Media: Fans and Followers Are an
End, Not a Means
The last couple of years have seen some massive changes in our world. The financial
bubble that reached its peak in 2007 popped, leaving us to enjoy what has been
dubbed The Great Recession. The Dow Jones plummeted, along with consumer
confidence.
But not everything declined. In the realm of social media, the number of Facebook users
grew dramatically, blog readership increased, and a new phenomenon called Twitter
exploded onto the scene. Its enough to make you think that using social media is the
latest and best way to effectively build your brand. Various pundits suggest as much, and
many brands seem to be buying into the idea.
Nigel Hollis However, I think that those who manage brands should look before they leap. I believe
Chief Global Analyst that the race to utilize social media channels is representative of the same sort of irrational
Millward Brown
nigel.hollis@millwardbrown.com exuberance that led the stock market to unprecedented heights and allowed people
www.mb-blog.com to have faith in incomprehensible financial instruments. For many brands, large-scale
investment in social media campaigns is likely to prove just as ill-advised and imprudent. In
other words, I think we may be witnessing a social media bubble.
The Power of Social Media
There is no denying that social media can be an incredible vehicle for change. One
compelling example is the Facebook campaign that prevented X Factor winner Joe
McElderry from reaching the top of the U.K. music charts last Christmas. The X Factor
winner has been number one on the charts since 2005, so it was not surprising that
after McElderry became the 2009 winner last December, the Telegraph announced that
his debut single The Climb was the all-but-guaranteed number one in the Christmas
chart.
But something else happened instead. Killing in the Name, a 1 7-year-old track by Rage
Against the Machine (RATM), an American rock band formed in 1 1, snatched the
99
number one slot from The Climb. This unlikely upset was the result of a campaign started
on Facebook early in December by husband-and-wife team Jon and Tracy Morter as a
protest against X Factors monopoly of the Christmas chart. The news media picked up
on the story, causing thousands of people to join the campaign; the number of fans on
the Facebook page exceeded 800,000 (more than Google, Pepsi, or Wal-Mart). What
is more, those fans acted. In the crucial pre-Christmas week, Killing in the Name sold
2. Millward Brown: Point of View Social Media: Fans and Followers Are an End, Not a Means
2
over 500,000 copies. While 1 million people viewed the X
9.5 Cola, and Red Bull. I related the number of fans these brands
Factor finale and 6 million voted for McElderry, only 450,000 had on Facebook (all had more than 250,000) to data from
bought The Climb. Millward Browns BrandZ database (specifically, U.S. data
from 2009), and compared the results for these successful
A number of factors contributed to the success of the RATM social media brands with other brands in the same product
campaign. First, the effort had the authenticity borne of its categories.
grass roots. It was founded by real people advancing a real
agenda, and that agenda was one that tapped into a current My first observation was that the five different product
concern the suspicion that big business was manipulating categories attracted very different numbers of fans. On
the public psyche for its own ends. Next, the vehicle chosen to average, the soft drink brands included in our BrandZ
advance the cause (the song Killing in the Name) was highly study had over 1 6,000 fans while airlines had barely 1,000.
appropriate. The songs expletive-laden lyrics expressed the I believe this is directly related to the number of people who
right note of anti-establishment sentiment, and the song are actively involved with a category on a regular basis. The
carried positive associations for people who remembered it level of satisfaction with brands in a category also seemed to
from the 1990s. correspond with the number of fans the category attracted.
Only 1 percent of U.S. air travelers are satisfied with the
8
Interestingly, these factors are quite similar to those that define brands available to them, while 56 percent of soft drink buyers
iconic brands. Does that suggest that achieving success with a claim to be totally satisfied with their brand choices.
social media campaign may be as difficult and elusive a goal
as becoming an iconic brand? Can Facebook work the same My next observation was that, in most categories, one or two
way for a consumer brand as it did for the RATM campaign? brands attracted the lions share of fans. Those brands are not
necessarily the biggest or the oldest, but rather the ones with
a distinctive positioning that sets them apart from competitors.
For example, in the case of domestic U.S. airlines, Southwest is
the dominant brand, followed by Virgin America, a newcomer
to the United States. I believe that Virgins commitment to
excellent service and customer satisfaction is what enabled it
to draw more fans than American Airlines, United, or Delta.
My final observation was that the playing field did not appear
to be level for brands competing on Facebook. It seemed
easier for some brands to gain traction simply due to their
product category and their positioning. But there is an even
larger obstacle to be overcome by many brands. Brands that
are already big and successful start with a major advantage.
The more loyal customers you have, the more fans you tend
to have on Facebook. Therefore, it is the big brands that get
the most out of Facebook not necessarily the new and
The Characteristics of Successful Facebook Brands trendy ones.
I undertook an analysis to address these questions. I identified
Using the Millward Brown Brand Pyramid, I compared the
1 brands that have been held up for their effective use of
2
composite brand equity of the two groups of brands. The
social media: Southwest, Honda, VW, McDonalds, Pizza Hut,
comparison (see Figure 1) demonstrated that successful
Subway, KFC, Dunkin Donuts, Krispy Kreme, Starbucks, Coca-
息2010 Millward Brown
3. Millward Brown: Point of View Social Media: Fans and Followers Are an End, Not a Means
3
It is the big brands that get the most out of Face-
Figure 1: Successful social media
brands tend to be stronger brands book. The more loyal customers you have, the more
fans you tend to have on Facebook.
Successful Other Brands comparethemarket.com, now has nearly 700,000 fans on
his Facebook fan page (which was created as part of the ad
Bonding 11 2 campaign). The combination of tightly integrated online and
offline marketing heightened interest in the brand, drove traffic
Advantage 26 to comparethemarket.com, and increased quotes by 45 percent
44
compared to the previous year.
Performance 53 37
Beyond Facebook
Relevance 66 43 While Facebook is the biggest social media network, it is not a
homogeneous community, nor is it the only channel through
Presence 81 54 which brands can connect with consumers. In fact, Millward
Brown identifies eight different types of social media: pure-
plays, blogs, syndication, peer-2-peer, wikis and collaboratives,
open source, tagging and rating, and consumer reviews. Each
social media brands start with 50 percent more Presence type serves different purposes and audiences. Among the
(familiarity with what the brand stands for) and finish with five pure-play vehicles, a low-reach, high-engagement medium
times as much Bonding (the strongest measure of attitudinal such as Twitter offers the chance to make that all-important
loyalty). The overall correlation between Bonding and the ongoing and personal connection.
number of Facebook fans across all brands in the five product
categories was 0.69. The successful brands have an average But Twitter users arent using the channel to be informed
of 1.6 million fans each, while the remaining brands (those that about brands. They are using it because they want to hear
have Facebook pages) have an average of 1 40,000 fans each. from people. Brands with social-media savvy know this and
often designate a lead Tweeter to represent the company and
Mass Exposure Is a Catalyst to Social Media Success engage people. Tony Hsieh, the CEO of online shoe retailer
One final element must be considered by brands thinking Zappos, is the archetypal corporate Tweeter. He follows over
of marketing through Facebook: the need for mass media 36,000 people and is followed by over 32,000. His tweets
coverage. Most notable social media campaigns have relied on help engage customers and allow them an inside peek at how
mass media to gain critical momentum. The Rage Against the the company works.
Machine campaign would likely have languished unnoticed by
the vast majority of people if the traditional media had not picked Fans and Followers Have Their Own Agendas
it up and publicized it. The same is true of some of the classics
Dynamic Logics AdReaction 2009 study found that while 59
of viral marketing: KFCs Subservient Chicken benefited from percent of Internet users are actively engaged with social
widespread media support, and Doves Evolution was boosted networking sites, only 1 percent of those people use the
3
by a strong PR campaign from Edelman New York. networks to follow or keep up with brands. Those that do follow
brands do so in an average of three categories, and they do so
Integration of mass media and social media helps transcend the to gain access to information, discounts, and giveaways.
disparate personal connections that drive social media in order
to achieve critical mass. The meerkat Aleksandr Orlov, created This presents a challenge for a brand. To pander to a small
to star in a TV campaign for the U.K. financial comparison site percentage of your target with discounts and added-value
息2010 Millward Brown
4. Millward Brown: Point of View Social Media: Fans and Followers Are an End, Not a Means
4
giveaways can undermine your brands status and profitability; Most notable Facebook campaigns have relied on
what you should focus on is engaging people with new mass media to gain critical momentum.
information and ideas that improve the customer experience.
What value can your brand offer beyond freebies and
Build a Strong Brand and Fans Will Follow
discounts? Games, puzzles, and competitions were
Because people use social media to connect with people popular means for engaging people long before the
and brands that they know, respect, and admire, social media advent of social media. Remember, while social media
makes a great channel for engaging existing customers. But may be a new communication channel, the motivations,
fans and followers are not a means to building a brand; rather, interests, and desires of the people who use it are not
they are an end. Social media cant help to build brands new; they are the same as they have always been.
How do you sustain the initial engagement beyond a
simple sign of affinity? Even large successful brands
must continually find new ways to engage fans that are
consistent with their basic appeal; otherwise the novelty
of fandom will quickly wear off. Coca-Colas Expedition
206 offers fans a chance to vicariously explore the world
through the eyes of three happiness ambassadors
tasked with finding out what makes people happy in the
206 countries in which Coke is sold.
Whatever your chosen strategy is, remember: There is no
substitute for creativity and consistency. Find an idea that will
resonate with your target audience and is in keeping with your
brands positioning. Promote what you do widely, in whatever
without the other ingredients that make brands strong: an
ways are most appropriate. Then listen to the response and
effective business model, a great brand experience, clarity
respond in turn.
of positioning, and the ability to disrupt the status quo in a
product category.
As I stated in my Point of View Make Friends Dont Pitch Them, To read more about social media, visit our blog at
creating a strong presence in social media is a good vehicle for www.mb-blog.com.
confirming a brands benefits and validating its commitment
If you liked Social Media: Fans and Followers are an
to its users. However, any marketers still considering how to
End, not a Means, you might also be interested
construct a social media strategy that will build buzz, saliency,
in:
and a deeper engagement with loyal brand advocates would
do well to ask themselves the following questions: Make Friends Dont Pitch Them (Aug 2008)
What Makes An Iconic Brand (Sept 2007)
Do people care enough about my brand and category to Brand Building Along the Media Long Tail (July 2007)
engage with it? If not, maybe social media is not for you. Have new media undermined the advantages held
What types of social media sites offer the most potential? by big brands? (MB-Blog)
What would be the best bet a pure play or a blog? An Share this POV:
active presence on multiple sites might be necessary to
engage even a small proportion of existing customers.
息2010 Millward Brown