A brief on Marketing on Facebook

1. Marketing on facebook Varun Papneja -Brand Development Team Thursday, July 24, 2008 1

2. Agenda Prelude Why Facebook Advertising /Marketing Platforms on Facebook Identifying the Opportunities Discussion Thursday, July 24, 2008 2

3. Prelude Thursday, July 24, 2008 3

4. Initially built for college and university students in 2004. 66 Million Users. 16,000+ Apps on platform. Time on site: Ave = ~ 20 minutes Facebook now has more than 42 million active users (double the number one year ago when it opened up registration and growing at more than 200,000 per day since January) Launch: Harvard/College Only Open to Public Pages and Social Ads 2004 2005 2006 2007 2008 Application Platform Thursday, July 24, 2008 4

5. Why facebook? Thursday, July 24, 2008 5

6. Facebook = 40-50 million | 200% Growth MySpace = 120 million | 72% Growth Facebook would eclipse MySpace in 09’ It’s the best platform to advertise with detailed demographics. 200 Million My Space Facebook Q4 2008? 2002 2003 2004 Thursday, July 24, 2008 6

8. Low Cost of Client Acquisition

9. Allows Demographic Targeted Marketing

10. Major users constitute of 18-38 age group, this makes it an active, vibrant medium Thursday, July 24, 2008 7

12. News Feed encourages spread of ideas Trend Watch: News Feed Optimization (NFO) Thursday, July 24, 2008 9

13. Groups and Communities Thursday, July 24, 2008 10

14. Inbox: A “new” email Trend Watch: Email is for “old” people Thursday, July 24, 2008 11

15. 8 FB Marketing Options Applications Groups Paid Groups Targeted Ads News Feed Ad Buys Pages Beacon Guerilla Execute with a Cohesive Strategy

16. Advertising /Marketing Platforms on Facebook

17. Opportunities for Marketers Advertising Banner Ads Contextual//NewsFeed/Flyer Ads Social Ads Marketing Facebook Pages and Sponsored Groups Beacon Word of Mouth/Interaction Applications Intelligence Profiles and Network information Public Groups Thursday, July 24, 2008 14

18. Banner Ads Recently, Microsoft invested in Facebook, broadening it’s Advertising opportunities

19. Facebook Flyers give self-service control Thursday, July 24, 2008 16

20. Targeted Advertising/FB Social Ads Thursday, July 24, 2008 17

21. Social Ad 1. Users can “poke” each other with branded viral messages -- combine social actions such as a purchase of a product or review of a restaurant – with an advertiser’s message. 2. Brands can buy paid ads. (Frequency capped – users will see no more than two per day). Users ‘dial’ the frequency of the ads.

22. Facebook Pages-allow brands to gravitate fans …

23. Sponsored Groups Group page with customized navigation, look & feel Usually includes a significant media buy to drive traffic to the sponsored group page Display ads and flyers Newsfeed targeting Costs usually in the six figures for a three month engagement Note that any company can set up a group for free Thursday, July 24, 2008 20

24. Beacon Simply determine which user actions you would like publish to Facebook and add a few lines of code to your web page. Facebook Beacon actions include purchasing a product, signing up for a service, adding an item to a wish list, and more. When a user performs the action, they will be alerted that your website is sending a story to their profile and have a chance to opt out Facebook Beacon enables your brand or business to gain access to viral distribution within Facebook. Stories of a user's engagement with your site may be displayed in his or her profile and in News Feed. These stories will act as a word-of-mouth promotion for your business and may be seen by friends who are also likely to be interested in your product. Opportunities Greater Trust (if done correctly) Challenges Not Opt-In Many Privacy concerns Resistance to peer based recommendations Brands need to ‘converse’ to get fans Thursday, July 24, 2008 21

25. Companies using Beacon BlockbusterChaseThe Coca-Cola CompanyVerizonEpicurious.comFlip.comCrest Whitestrips (whitestrips.com) Owned by Proctor and GambleDove Cream Oils (Dove.com) Unilever CompanyHerbal Essences (herbalessences.com) Clairol Division owed by Proctor and GambleNYTIMES.COMSaturnAllPosters.comBluefly.comCBSSports.comDotspotterExpoTVGameflyHotwireJoostKivaKongregateLiveJournalLive NationMercantilaNational Basketball Association Overstock.com(RED) joinred.comRedlight (stay away from adult sites any one of them can be this redlight company and be telling your friends about your sex fetishes. Yuck!)SeamlessWebSony Online Entertainment LLC (station.com)Sony PicturesSTA Travel (statravel.com)The KnotTripAdvisorTravel TickerTypePadviagogoVoxYelpWeddingChannel.comZappos.comebaybluefly.comTravelocityechomusicpronto.comcitysearchIwonBusted TeesCollege Humor (same company as busted tees)Fandango Red indicates hesitation after BeaconGate Thursday, July 24, 2008 22

26. Applications Create useful apps that model what friends do naturally – share info, experiences, and laughs. Plan out how to make your app viral. Get feedback from users once you launch. Thursday, July 24, 2008 23

28. It must be informative, speaking about the product, its features and updates.

29. Groups are created easily and they are for free, It can create nice viral marketing for a product /service.

30. The main framework that a group thrives on is communication among members and getting more members regularly.

31. Intrigue the members and it will surely swell the group with more members.Thursday, July 24, 2008 24

32. IdentifyingTheOpportunities… Thursday, July 24, 2008 25

34. Creating a Social Ad is quick and easy. Simply write a creative, tell us who you want seeing your ad, and decide where you want to drive traffic. You can buy ads by number of clicks (CPC) or by number of impressions (CPM). While the ad is running, you will receive performance metrics from Facebook Insights including demographic data of who's engaging with your ad and feedback on how to optimize your ad.Thursday, July 24, 2008 26

35. Pricing Clicks/Views Thursday, July 24, 2008 27

37. Every Facebook Page is a unique experience where users can become more deeply connected with your business or brand. Users can express their support by adding themselves as a fan, writing on your Wall, uploading photos, and joining other fans in discussion groupThursday, July 24, 2008 28

38. Pricing Clicks/Views Thursday, July 24, 2008 29

40. Facebook Poll We will charge your credit card a $1 insertion fee once you click the "Place Order" button. Your Poll will go live immediately. Upon completion of your Poll, we will charge your credit card for the responses you receive (up to an additional $25). Because we charge your credit card at the conclusion of the Poll, we will store your credit card information with your Facebook account once you place your order, and you will not be able to remove it until your order is finished. Thursday, July 24, 2008 31

41. Facebook Poll (sample) Thursday, July 24, 2008 32

42. Facebook platforms- helps create applications… This quiz application was created by times new York Thursday, July 24, 2008 33

43. Useful Tips Facebook marketing is about communicating, not advertising – so act appropriately Be a part of the Facebook experience More like content than advertising Tap into the reasons why friends share Listen, learn, and be ready to make mistakes Carefully segment the market for your product, target the right demographics. Keep updating the channels of marketing every 6-monthly,since social networking undergoes many radical changes and frequent updates. Facebook is all about communication, groups, communities, pages, application. Leverage most out of them. Thursday, July 24, 2008 34

44. DISCUSSION… Thursday, July 24, 2008 35