New Data Analyzes Use of Facebook and Twitter for Advertising

 

It’s becoming an unavoidable reality for advertisers. One way or the other, they are going to wind up using Facebook or Twitter – or both. So is it worth it? According to just-released data, Facebook is a good bet for advertisers. Twitter… well, maybe not so much.

A major new survey of active Facebook users, executed by ad agency DDB in six countries and unveiled in Adweek, indicates that brand page fans aren’t just interested in information – they use that brand “regularly” or “occasionally.” More significantly, after following a brand on Facebook, over a third of them say they “want to buy this brand’s product more.”

Additionally, 49 percent of brand page fans would “certainly” recommend the brand to friends and 43 percent would “probably” do so. Taken together, this 92 percent response represents a strong endorsement by brand advocates – people who are not shy about telling their friends and acquaintances about a brand they like.

Another interesting statistic: While 75 percent of a brand’s fans arrive at its Facebook page via advertising or an invitation from the brand, 59 percent go there because of a friend’s invitation – again, strong evidence that consumers who like brands tell others, and others act on the recommendations.

Obviously, this bodes well for Facebook advertisers, since social media has become such an influential means of communication. Still, advertisers should note that the average Facebook user is effectively worth less than 3 bucks, and Facebook ad space is actually worth less than 25 percent the online average, as CT Moore points out.

Now what about Twitter? An analysis by Sysomos, a Canadian social media analytics company, of 1.2 billion messages on Twitter during a two-month period revealed that seven out of ten tweets got no reaction whatsoever. Of the remaining messages, only 6 percent got retweeted. The analysis also found that 85 percent of replied-to messages got just one reply.

Even though this may look like Twitter is a bust for advertisers, some analysts don’t think that’s the case. For example, Jessica Michaels of Marketing Daily cites Dell and Best Buy as two examples of advertisers who have used Twitter with substantial success. She says Dell, who started using Twitter in 2007, today maintains over 80 Dell-branded Twitter accounts and has “booked more than $3 million in revenue attributable to its Twitter posts.” Best Buy, says Michaels, uses Twitter for customer service via its “Twelpforce” program. She reports that Twelpforce has provided over 19,500 customer inquiries, and “complaints to Best Buy were reduced by 20% in the first year of the Twelpforce program.”

But the jury is still out on Twitter’s ability to serve the business advertiser. Twitter ditched its “@earlybird” feed after a short run. Duane Kuroda questions whether Twitter should have abandoned over 200,000 followers of @earlybird, which “delivered customer service via deals,” and instead move to Promoted Tweets and Promoted Accounts, as I discussed in one of my previous articles. Clearly, Twitter needs to do more if it is going to be commercially viable and convince advertisers that using Twitter is measurable and a good media buy.

In terms of where to invest promotional dollars, advertisers have more choices than ever, and many of them are seriously considering social media – even to the extent of moving money from other media into Facebook, Twitter and the like. Before they do so, they should take into account the results of objective surveys and analyses that assess the commercial value of these media – so they know what they’re getting into.

About Barry Silverstein

Barry Silverstein is a freelance writer/marketing consultant. In addition to writing for ReveNews, he is a contributing writer to Brandchannel.com, the world’s leading online branding forum. He is the author of three marketing books, The Breakaway Brand (co-author, McGraw-Hill, 2005), Business-to-Business Internet Marketing (Maximum Press, 2003) and Internet Marketing for Technology Companies (Maximum Press, 2003). Barry ran his own Internet and direct marketing agency for twenty years. You can find Barry on Twitter @bdsilv.

One Response to New Data Analyzes Use of Facebook and Twitter for Advertising

  1. DmitryS says:

    Good post. Yes social media intelligence is becoming a must have for us advertisers. we have been giving a try to InfiniGraph and so far are quite impressed with what we got.