Transcript
Keeping Tabs on Travel and Facebook
Compete Exploration December 15, 2011
2
Today’s presenters
Ryan Williams
Director, Client Services, Travel
Lincoln Merrihew
Managing Director, Transportation
Alyssa Maine
Marketing Coordinator, Marketing at Compete
3
Who we are and what we do
• Founded in 2000, joined WPP/Kantar in 2008
• Passionate about understanding consumers to inspire great
marketing
• Fastest-growing operating company within Kantar in terms
of revenue and new customer growth
• World-class advertiser, agency and media clients
• Strategic partnerships to enable marketing optimization and
provide holistic view of consumers
• Largest panel in the industry with 2.3 million US consumers
4
Webinar logistics
• Today’s webinar will be recorded. You will be
emailed a link.
• Please enter your questions in the
Questions box. We will answer as many
as possible at the end.
• If you have technical difficulties, try logging
back in or use a different browser
• The Twitter hashtag for today’s webinar is
#competeauto
5
Agenda
• Where Facebook and Travel Stand Today
• Exploring The Value of a Facebook User
6
State of the Travel Industry
Recovery in the hotel industry is slow but steady despite the weak economy, with ADRs up over 4% YoY in North America.
The flight industry is not faring as well, with YoY declines in reported online bookings and significant increases in ATPs to offset higher costs.
The car rental industry is seeing a surplus of cars as fleet management becomes increasingly difficult. Rental rates are down 21% YoY as a result.
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Vacation Intended (Left) Consumer Confidence (Right)
Vacation Intent is Up Despite Weak CC Trends
• October’s consumer confidence index of 40.9 is the lowest it has been in 2 ½ years but
November projections (not shown) push it back to 56
• While vacation intent is up, the means of travel (not shown) are shifting with intent to fly
actually down 8% Oct vs. Aug and intent to drive up 8%
Consumer Confidence and Vacation Intent (Feb’08-Oct’11)
7 Source: The Conference Board, Nov’11 Results
Read as: As of
Oct’11, 49% of
consumers
intend to take a
vacation in the
next 6 months,
but the
consumer
confidence
index was at a
2.5 year low –
41. Note, 90 is
considered a
“healthy” index.
8
29.2%
3.1%
12.4%
18.2%
30.9%
3.6%
14.3%17.6%
33.5%
4.1%
15.8% 16.5%
All Travel Car Rental Hotel Air
2009 2010 2011
More of the IBP is Shopping for Travel
• The share of the internet browsing population that shops for travel has increased, both in
aggregate and across major travel lines of business
• With the IBP also growing month to month (not shown), this means there are more
consumers shopping for travel in 2011 than in the past 2 years
Average Travel Visitor Share of IBP (2009, 2010, 2011 YTD)
8
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3.8%
0.6%
1.3%
2.3%
3.9%
0.7%
1.4%
2.1%
4.5%
0.9%
1.6%2.1%
All Travel Car Rental Hotel Air
2009 2010 2011
And More of Those Shoppers are Booking
• Book rates for the IBP have also improved vs. prior years, with nearly 5 of every 100
internet users booking some form of travel in 2011
Average Travel Booker Share of IBP (2009, 2010, 2011 YTD)
9
10
Bar is Set Low for Facebook Travel Services
• Travel is consistently a hot topic of discussion and Facebook is often at the epicenter of
those discussions. However, consumer expectations of Facebook travel services are low.
• Across multiple categories, fewer than 10% of survey respondents indicated Facebook
travel services would be better than existing online services
Expectations for Facebook Travel Services (Survey: Jul’11, n=601, top 2 and bottom 2 box)
Read as:
6.2% of
respondents
indicate
Facebook travel
services would
be better than
existing services
with regard to
Loyalty &
Rewards
programs
0% 5% 10% 15% 20% 25% 30% 35%
Ease of Research
Variety of Brands
Variety of Destinations
Ease of Booking
Price & Fees
Trust w/PII
Loyalty & Rewards
Ease of Changing Reservation
FB Better
FB Worse
11
-50%
-40%
-30%
-20%
-10%
0%
10%
May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11
UVs (MoM %)
Page Views (MoM %)
Avg Stay (MoM %)
Visits/Person (MoM %)
Facebook Engagement Metrics Down Since Sep’11
• Facebook made significant and controversial UI changes in September and shifts in user
behavior on Facebook.com were immediate
• While unique visitors are up slightly since the changes, core engagement metrics like page
views and average stay have seen considerable decline
Facebook Key Performance Indicators (May – October 2011)
Read as:
Target has
generated 7.4M
fans of its brand
on Facebook as
of 12/11/11
12
Social Media ROI Not Well Understood
Many companies today are not measuring ROI for the money they spend on social media marketing, likely because they don’t have the tools to do so
Brands are indicating they are not prepared for social media but most still plan to increase its use
According to Compete, Facebook under-indexes for hotel shoppers when compared to the IBP
• On average, only 8% of Facebook’s monthly unique visitors shop for hotels in the same month (16% for mapquest, 13% average for non-travel sites)
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4.4%
2.4%
2.0%
1.4%1.3%
1.1%
0.7%0.6%
0.5% 0.4%0.3% 0.2% 0.1%
Travel Sites Not Commonly Upstream of Facebook
• Despite the potential for sharing travel related information on Facebook, travel sites as a
category lag behind most every other web category as a source of traffic to Facebook
Share of Inbound Referrals to Facebook.com, by Category (Upstream) (Oct’11)
Read as:
0.3% of sites
immediately
upstream of
Facebook.com
are categorized
as Travel sites
14
10.9%
3.7%3.3%
1.8%1.4%
1.1% 1.0% 0.8% 0.6% 0.4% 0.2% 0.2% 0.0%
Travel’s Downstream Popularity Also Suspect
• The same holds true for post-Facebook activity, with just 0.2% of sites immediately
downstream of Facebook.com being Travel sites
Share of Outbound Referrals from Facebook.com, by Category (Downstream) (Oct’11)
Read as:
0.2% of sites
immediately
downstream of
Facebook.com
are categorized
as Travel sites
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Agenda
• Where Facebook and Travel Stand Today
• Exploring The Value of a Facebook User
16
Impact of Brand Page Interaction on Site Engagement
16
70k Incremental Bookings in
60 Days
Visits per Unique Visitor
+90%
Page Views per Unique Visitor
+128% Average Time Spent per Visit
+156%
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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The “Like” Barometer
• A year ago, Mashable.com published an infographic that showed 139 brands had over
1mm likes on Facebook, with Barbie and Lego quickly approaching 1mm
• Today:
• Barbie has 2.8mm likes with Lego at 1.3mm
• The needle can move in a hurry
• Expedia had 130k “likes” at the start of
their FriendTrips campaign and over a
million when it ended 2 months later
• Brand success is tied to more than just “likes” – engaging with your fans and, more
importantly, getting your fans to engage with you is as important as getting them to “like”
you in the first place
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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1,143,254
273,469
7,420,162
5,503,904
Expedia Delta Target Best Buy
# of Likes (as of 12/11/2011)
Are “Likes” a Good Measure of Social Media Success?
• Retail brands are the obvious leaders in volume of “likes”
• This doesn’t necessarily mean Target and Best Buy have been any more successful with
Facebook than Expedia or other travel brands
Facebook Fans (Number of “likes” for each brand, as of 12/11/11)
Read as:
Target has
generated 7.4M
fans of its brand
on Facebook as
of 12/11/11
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
19
4.1%
4.0%
7.4%
18.3%
13.9%
11.2%
11.5%
11.5%
7.8%
10.4%
More than 30
21-30
11-20
6-10
5
4
3
2
1
0
A Facebook Fan’s Shelf Space is Limited
• Over 60% of respondents indicated they “like” fewer than 6 brands
• Showing up late to the game could mean access to fewer fans
How many retailers and/or consumer product companies do you “like” on
Facebook? (Survey: n=1,627)
Read as:
13.9% of survey
respondents
indicated they
“like” 5
retail/CPG
brands on
Source: Compete Spring 2011 Online Shopper Intelligence Survey
20
Fan vs. Non-Fan
• Brands commonly present a different welcome page to non-fans in hopes of capturing the
all-powerful “like”
• Same URL: www.facebook.com/target
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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Ongoing Conversation is Key
• Smart brands don’t simply launch a promotion and leave it running forever
• URL: www.facebook.com/expedia (screenshots from different dates)
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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Why Visit the Site When You Can Buy on Facebook?
• More and more, brands are offering visitors the ability to initiate shopping and even
complete the booking within their branded Facebook pages
• The idea is ancient – be present when the consumer is ready to purchase
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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Major Campaign: Expedia FriendTrips
• April 2011
• Expedia launched the FriendTrips
game, the largest promotion ever
hosted on Facebook
• Expedia used this campaign to
generate over 1mm “likes”
• Roughly 85% of the aggregate
monthly UVs to Expedia’s branded
pages on Facebook (Jan-Aug’11)
visited in April and May – the months
of the active promotion
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
24
Major Campaign: Target Summer Fun Finder
• June 2011
• Target’s Summer Fun Finder
Facebook application launched
• Extremely viral and engaging
• 53% of the aggregate monthly UVs
to Target’s branded pages on
Facebook (Jan-Aug’11) visited in
June and July – the months of the
active promotion
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
25
Major Campaign: Best Buy Deal of the Day
• August 2011
• Best Buy launched their “Deal of the
Day” campaign, and promoted
Facebook as one of the access points
for these great deals
• 42% of the aggregate monthly
UVs to Best Buy’s branded pages on
Facebook (Jan-Aug’11) visited in
August – the month of the
active promotion
• The “Deal of the Day” is no
longer promoted on Best Buy’s
Facebook page
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
26
Consumers’ Facebook Brand Page Visits Up in 2011
• Consumers this year are 12% more likely than in 2010 to visit a brand’s official Facebook
pages
How often do you visit official Facebook pages of retail and/or consumer
product companies? (Survey: At least once per month; 2010 n=3,061; 2011 n=3,269)
Read as:
27% of survey
respondents
plan to visit a
brand’s official
Facebook pages
at least once per
month, up 12%
from last year
24%
27%
Spring 2010 Spring 2011
+12%
Source: Compete Spring 2011 Online Shopper Intelligence Survey
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Facebook Penetration is Strong for All Brands
• 80-90% of brands’ unique visitors also visit Facebook in the same month
• The share of brand.com visitors visiting the respective brand’s official Facebook pages is
much smaller, but we’re still talking about significant volume
Facebook Penetration (% of brand.com UVs that also visited Facebook.com in the same month, Jan-Aug’11)
Read as:
2011 YTD,
86.1% of
Bestbuy.com
UVs also visited
Facebook.com
in the same
month, but only
0.2% visited
Best Buy’s
official
Facebook pages
0.4% 0.1% 0.2% 0.2%
85.4%81.4%
87.6% 86.1%
14.6%18.6%
12.4% 13.9%
Expedia Delta Target Bestbuy
% Not Visiting Facebook
% Visiting Facebook
% Visiting Brand.com's Official Facebook Pages
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
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30%
50%
43%
28%
Expedia Delta Target Bestbuy
2011 YTD
Big Opportunity to Better Engage With Your Fans
• While a small % of your site visitors actually see your official Facebook pages in the same
month, a much larger % of visitors to your Facebook pages hit your site
• There’s still opportunity to better connect with your Facebook page visitors
Facebook Brand Page UVs and Brand.com - Overlap (% of unique visitors to Brand.com’s official Facebook pages that also visit Brand.com, Jan-Aug’11)
Read as:
Only 43% of the
visitors to
Target’s official
Facebook pages
visited
Target.com in
the same month
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
29
Impactful Facebook Campaigns Drive Visitors
• This month by month view into unique visitors to each brand’s official Facebook pages
shows when different campaigns were launched
• It is clearly possible to generate strong engagement with the right campaign
Unique Visitors to Facebook Brand Pages (Number of unique visitors to Brand.com’s branded pages on Facebook, by month)
Read as:
In Apr ’11,
Expedia’s
official
Facebook pages
received over
1M UVs
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11
Expedia FriendTrips
BestBuy DOTD Target Summer
Fun Finder
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
30
13.6%
13.7%
26.4%
29.0%
56.2%
Connect with other people who like the retailer
Let others know why I like a specific retailer
Appears in my news feed b/c a friend "likes" it
Learn more about a specific retailer
Keep up to date on sales and promotions
Facebook Brand Pages Visitors Are Price Sensitive
• Nearly 6 in 10 survey respondents indicated they visit a brand’s official pages in Facebook
to gain access to sales and promotions
Why do you visit official Facebook pages of retail and/or consumer product
companies? (Survey: n=1,627)
Read as:
56.2% of
survey
respondents
indicate they
visit a brand’s
official
Facebook pages
to keep up to
date on sales
and promotions
Source: Compete Spring 2011 Online Shopper Intelligence Survey
31
38.4%40.1%
21.8%
48.0%48.1%
56.6%
25.4%
56.1%
Expedia Delta Target Bestbuy
FB
BFB
Brand Page Visitors Are More Loyal
• People who visit brand.com and that brand’s official Facebook pages exhibit a stronger
sense of loyalty, allocating more of their category visits to that brand’s site
• Upwards of 41% more in the case of Delta.com
Brand.com vs. Category Visitation by Segment (Share of category visits allocated to brand.com, by segment, Jan-Aug’11)
Read as:
Of people who
visited
Delta.com and
Delta’s official
Facebook pages
in 2011, their
Delta visits
accounted for
57% of their
total air supplier
visits over the
same period
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
25% 41% 16% 17%
32
Facebook Brand Pages Visitors Are More Engaged
• Generally, people who visit a brand’s official Facebook pages visit the respective brand.com
site more often
Visits per Monthly Unique Visitor (Brand.com visits per UV by brand, by segment, Jan-Aug’11)
Read as:
People who
visited both
Delta.com and
Delta’s official
Facebook pages
had 5.3 visits
per UV on
Delta.com,
139% more than
general
visitors who also
visited
Delta.com 1.7
2.1
1.5 1.7
1.8
2.2
1.7 1.8
3.5
5.3
2.9 2.9
Expedia Delta Target Best Buy
NFB
FB
BFB
7%
90%
5%
139%
19%
69%
6%
63%
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
33
24.7 27.5
9.1 12.8
23.0 26.0
13.2 15.4
52.4
79.1
30.3 31.6
Expedia Delta Target Best Buy
NFB
FB
BFB
Facebook Brand Pages Visitors Are More Engaged
• It’s not just the variance in frequency of visits – we also see lift in actual brand.com page
views by those who have also visited the brand’s official Facebook pages
Page Views per Monthly Unique Visitor (Brand.com page views per UV by brand, by segment, Jan-Aug’11)
Read as:
People who
visited both
Delta.com and
Delta’s official
Facebook pages
had 79 page
views per UV
on Delta.com,
187% more than
general
visitors who also
visited
Delta.com
-7%
128%
-5%
204%
45%
130%
20%
105%
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
34
16.0
27.5
9.4 10.3
15.1
25.2
11.4 9.1
38.7
64.8
25.4
14.7
Expedia Delta Target Best Buy
NFB
FB
BFB
Facebook Brand Pages Visitors Are More Engaged
• Time spent per visit to brand.com shows a similar increase for those who have also visited
a brand’s official Facebook pages in the same month
Time Spent per Visit (Minutes spent on brand.com per visit by monthly UV, by brand, by segment, Jan-Aug’11)
Read as:
People who
visited both
Delta.com and
Delta’s official
Facebook pages
spent 65
minutes per visit
on Delta.com,
136% more than
general
visitors who also
visited
Delta.com
-5%
156%
-8%
157%
21%
123%
-11%
61%
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
35
Facebook Brand Pages Do Influence Purchase
• 3 of every 4 surveyed respondents indicated a brand’s official Facebook pages had at least
some influence on their purchase decision
How influential have Facebook pages been on your decision to purchase
products from those retailers? (Survey: n=1,627)
-5%
156%
5-8
157%
21%
123%
-11%
61%
22.5%21.7%
32.9%
16.7%
6.2%
Influence Extremely influentialNot at all influential
Source: Compete Spring 2011 Online Shopper Intelligence Survey
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Brand Page Interaction Leads to Increased Conversion
• Consumers who engage with both a brand’s website as well as that brand’s official
Facebook pages show a much stronger propensity to book
Lift in Brand.com Conversion – FB Segment vs. BFB Segment (Lift in average monthly conversion rates between different segments)
-5%
156%
5-8
157%
21%
123%
-11%
61%
107%
57%
69%
37%
Expedia
Delta
Target
Bestbuy
Read as:
People who
cross-visited
Target.com and
Target’s official
Facebook pages
were 69% more
likely to convert
on Target.com
than general
visitors who also
visited
Target.com
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
37
Impactful Facebook Campaigns Drive Visitors
• This month by month view into unique visitors to each brand’s official Facebook pages
shows when different campaigns were launched
Unique Visitors to Facebook Brand Pages (Number of unique visitors to Brand.com’s official Facebook pages, by month)
Read as:
In Apr ’11,
Expedia’s
official
Facebook pages
received over
1M UVs
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11
Expedia FriendTrips
BestBuy DOTD Target Summer
Fun Finder
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
38
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11
Expedia Domain
Expedia Flight
Expedia Hotel
Delta
Target
Bestbuy
Can Facebook Campaigns Drive Conversion?
• It is clear the Expedia FriendTrips game not only sparked visitation to Facebook but also
accounted for a much more significant portion of Expedia’s total bookings
• The success touched multiple lines of business as well – specifically Hotel
Purchase Patterns of Visitors to Brands’ Official Facebook Pages (Bookings on brand.com by UVs to that brand’s official FB pages, as % of total brand.com bookings
Read as:
In Apr ’11, 2.2%
of Expedia’s
total monthly
bookings were
made by people
who also visited
Expedia’s
official
Facebook pages
Expedia FriendTrips
BestBuy DOTD
Target Summer
Fun Finder
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
39
The Upside for Some Brands is Significant
• Expedia’s opportunity amounts to incremental booking growth of 2%
• 1% for Target and Best Buy
Opportunity (Incremental online purchases with 100% overlap between Facebook brand pages and brand.com, Jan-Aug’11)
Read as:
If 100% of the
visitors to
Expedia’s
official
Facebook pages
also visited
Expedia.com,
this could have
generated over
93k incremental
bookings Jan-
Aug’11
-5%
156%
-8%
157%
21%
123%
-11%
61%
93,151
5,218
23,796
18,383
Expedia Delta Target Bestbuy
Compete | Expedia Media Solutions – Exploring the Value of a Facebook User, November 2011
40
Ten Tips to Building a Brand Worth Liking on Facebook
• People want to believe there’s value in “liking” your brand. Offer exclusive content, discounts, etc, but keep it relevant to your brand. 1. Give Your Fans What They Want
• Another way of staying relevant to your customers is to ensure promotions on your website are relayed on your Facebook pages as well.
2. Crowdsource Your Website Content
• Encourage potential fans to “like” your brand by hinting at additional content or promotions to which they’ll have access after “liking” you.
3. Encourage People to “Like” Your Brand
• Keeping your brand presence simple is increasingly important as time-spent metrics on Facebook decline. Too many sub-pages or links could distract your fans. 4. Don’t Dilute Your Own Content
• Considering a consumer’s shelf-space is limited, you should view this as a privilege. Be suggestive in your sales pitches, but not pushy. 5. Be Persuasive, Not Pushy
• Make it easy for users to access your website from your Facebook pages. The likelihood of converting a fan to an actual customer will increase substantially. 6. Link to Your Website
• By enabling communication between your fans, you empower them to speak on behalf of your brand, leveraging the power of positive word of mouth. 7. Create Conversations
• Be careful not to be too serious in your communication or risk taking on a lecturing tone with your fans. Communication should be light and fun but brand-appropriate.
8. Keep Your Tone Social But Brand-Appropriate
• Keep your brand presence on Facebook fresh and encourage social sharing by giving your fans something to do, talk about or send to friends. 9. Engage With Your Fans
• Now that you have thousands if not millions of fans of your brand, think of unique and inspiring contests that encourage sharing beyond your existing fan base.
10. Feature Contests, Sweepstakes, Games, etc.
41
Thank You.
•Ryan Williams •Director, Client Services
•rwilliams@compete.com
•206.226.9082
•Lincoln Merrihew •Managing Director, Transportation
•lmerrihew@compete.com
•617.933.5629
Questions?
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