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Jun 29, 2015

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2. 718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972052Executive SummaryAfter Facebook released the ticker, timeline, and other changes, some brandscomplained of a decline in organic impressions. Where is this occurring, andhow has the effectiveness of organic impressions trended against paid efforts?Our research spans data from a 7-month time period from June 1, 2011 toDecember 31, 2011: 11,365 pages 5,744,550 admin and user posts 76,202,654 Facebook users spread over 75 countries 91,009,142,252 organic impressions 27,969,233,010 paid impressions 1,142,652,653 viral impressions. 120,111,027,915 total impressionsThis is a continuation of BlitzLocal research performed in January 20111, nowwith six times as much data and correlating organic data. Limitations of thisstudy are the exclusion of data from applications (apps) and open graphobjects, which likely have an effect on organic impressions.According to our data, the following factors affect organic impressions: Engagement Engagement affects a pages EdgeRank and how oftenFacebook will show posts. Increased competition in the newsfeed More objects in the newsfeedmeans fewer people are seeing brand content. Content type Some content types are more engaging. Post length Post length affects how many people engage with a post. Post decay Post timing is important as posts only live in the newsfeedfor so long. Sales related posts Sales related posts drive less engagement andimpressions.From our data we drew the following conclusions:1.) As more users generate more content via more apps and devices, brandmessages get drowned out in the noise. Organic impressions per page aredown 33% due to a decrease in frequency, not reach. We did not detect anyadjustment by Facebook to force brands to have to advertise to reach theirusers: there's just more "stuff" and Facebook has to apply a higher power filter.2.) Content that used to live for a day, may now live minutes in a user'snews feed. This concept is evidenced by decreased frequency of exposure aswell as the "half life" of interactions. Facebook created several forms of1http://www.allfacebook.com/surprise-timeliness-boosts-facebook-engagement-2011-06 3. 718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972053"Sponsored Stories", ad mechanisms, to directly combat the "EdgeRank"problem (competing for attention) and the time window problem. These adsare effective in growing fans and amplifying the brand's message. Facebookmetrics greatly underestimate the power of word of mouth.3.) While brands with paid advertising saw positive benefits in fan growthand organic exposure, the cost-effectiveness of Facebook ads declined,even as brands advertised more heavily. 4. 100806040718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972054Section 1: Organic Impressions are DecliningFrom July to December 2011 organic coverage(number of organic impressions per 1,000 fans)decreased 33%, from 836.1 to 608.Some social mechanics to understand: Brands canincrease their impressions by growing their reach(the number of fans that see their messages) ortheir frequency (how many times, on average, afan sees these messages). Frequency is down39.1%, while reach is up 12.5%, providing a neteffect of a 31.5% decrease in impressions.Impressions per 1,000 fans are the product of reachtimes frequency divided by total fans. We saw thatthe decline in frequency pushed impressions downby 34.5%, while reach pushed impressions up byless than 1.1% (Figure 1.1). In this same period,there was a spike in paid coverage driven primarilyby the holiday season resulting in 934.3 paidimpressions per 1,000 fans in Novght,ember (a141% increase from October) and 691.9 paid impressions per 1,000 fans inDecember (a 121% increase from October).12108642020July, 2011 August, 2011 September, 2011 October, 2011 November, 2011 December, 2011Total Impressions per UserUnique Users/1,000 ImpressionsFrequency Declines, but Reach IncreasesFigure 1.1ReachCorrelation=-0.79Highlights OrganicCoverageisdown33%fromJuly,whilepaidCoveragewasup141%inNovemberand121%inDecember. Postdecay,increasingcompetitioninthenewsfeed,salesorientedposts,andchangesincontenttypemayhavecontributedtoadeclineinengagement,butwecantconclusivelymakethisassertion. 5. There is a -0.56 correlation between organic and paid impressions (Figure 1.2).We expect this correlation to get stronger as Facebook rolls out ads in thenewsfeed, which will squeeze out organic impressions.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972055Organic Impressions: Impressions in the news feed, ticker, and from fans visiting a brands page.Paid Impressions: Number of ad impressions.Why the Drop in Organic Coverage?Engagement may be decreasing: Our analysis should show the decrease inengagement rate to be seasonal, but without a full year of data on the newmetrics this cannot be judged conclusively. While engagement rate isntdefinitively down, impressions are down meaning that Facebook is better atfiltering users' news feeds. In other words, Facebook is showing fewerimpressions but still getting the same level of feedback.Facebooks EdgeRank rewards pages in the news feed based on how manyinteractions they receive. Interactions are the number of likes, posts, andcomments a page has. For pages with more than 100,000 fans, engagementdeclined 21% from 3.8% to 3% between October and December 2011. Forpages with fewer than 100,000 fans, engagement also fell 26.0% from 16.0%to 11.8% (Figure 1.3). In this same period, active users fell by 27.3%. 6. Has Engagement Rate By Month Declined?Less Than 100,000 Fans Figure 1.3100,000+ FansCorrelation=0.570% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%December, 2011November, 2011October, 2011September, 2011August, 2011July, 2011June, 20117%6%5%4%3%2%1%0%Sales Related Posts Rise in October, November, andDecemberFigure 1.4June, 2011 July, 2011 August, 2011 September,2011October,2011November,Percentage of Posts That Are SalesRelated718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972056Engagement Rate: Total Interactions/fan count over a 30 period.A shift towards sales-related posts in October, November, and December was apossible contributing factor to the drop in engagement and increase in fanremovals. Matching words like buy, sale, and purchase, we saw an 11%increase in sales-related posting in October, a 26.5% increase in November, anda 13.2% increase in December (Figure 1.4).2011December,2011Another possible contribution to the decrease in engagement was an increasein page sizes. There is a -0.12 correlation between page size and engagement 7. (Figure 1.4). Despite the common perception that engagement tends todecline as page size increases, the low value of this correlation suggests a weakrelationship between page size and engagement. It is possible that the firstfans of a page are the most loyal. When the page gains mainstream presence itmay have a more general audience, contributing to lower engagement.3.0 Larger Pages Have Slightly Less Engagement2.52.01.51.00.50.0Figure 1.5Correlation=-0.12The data does not conclusively say engagement is down; rather it has gone upin the Fall and down in the Winter. Fourth quarter sales-oriented messagingmay account for the drop, but without year-over-year data we are unable toconfirm or disprove this hypothesis. If engagement is steady in light ofimpressions dropping, it may be a sign that Facebook's algorithms are doing abetter job in selecting what to show users. Clearly there is a lot more content,but Facebook's filtering mechanism has improved.It is interesting to note that despite a decrease in engagement rate, there aremore people than ever talking about brands. Between July and December 2011there has been a 15.3% increase in People Are Talking About This (Figure 1.6).This could indicate a broader group of active users are interacting with pages,but less frequently.DifferentAnglestoMeasureEngagementPeopleAreTalkingAboutThis:Totalnumberofpeoplewhohavehadabrand-relatedactionshowupintheirnewsfeed.Coverage:Totalnumberofimpressionsper1,000fans.UniqueReach:Totalnumberofpeopleseeingimpressions.EngagementRate:Totalinteractionsovera30-daydividedbyfancountFeedbackRate:Percentofpeoplewhosawapostwhocommentedorliked.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 972057Note: Facebooks web insights provides up to 89 days worth of data, so brands must store historythemselves, use a 3rd party analytics like BlitzMetrics, or lose it forever.da 8. 8.28.07.87.67.47.27.06.86.66.46.2More People Are Talking About BrandsJuly,2011 August, 2011 September,2011October,2011Figure 1.6November,2011December,2011People Talking Are About This/1,000FansAnswering the Engagement Rate Question: Regardless of whether engagementrate has declined or not, People are Talking About and engagement rates arelow no matter how you cut it. This is likely less about Facebook algorithmicallyharming brands, and more about brands focusing on growing fans for the lastcouple of years and only starting to focus on engagement recently. Year afteryear we have seen a shift in attitudes and priorities of companies in regards toSocial Media. In 2009, 2010, and 2011 most companies fearfully expandedsocial budgets in order to not be left behind by competitors.2 Companies whoplanned social budgets for 2012 were looking heavily towards measurement andengagement.3Newsfeed Competition: Facebook cites 900,000,000 objects (events, pages,community pages and groups) that users can interact with on Facebook.4 Inaddition, there are 36.2 million user actions per hour showing up in the newsfeed. 5More and more content are competing for visibility, appearing in the availableimpressions in a users news feed. Similarly, ranking on Google is morechallenging today than eight years ago, given that more pages arecompeting for the first page of search results.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720582 http://www.emarketer.com/blog/index.php/marketers-spending-social-media-wrong-reasons/3 http://www.emarketer.com/Article.aspx?R=1008667face4https://www.facebook.com/press/info.php?statistics5http://www.jeffbullas.com/2011/04/28/50-fascinating-facebook-facts-and-figures/ 9. In addition to the amount of content generated on the Facebook wall each day,we see another trend emerge from the data that could reduce organicimpressions. From October to December, the overall time spent on Facebookdropped 15%, from 28:26 minutes to 24:43.6 With users spending less time onFacebook, and more content elements competing for display, the naturalproduct of these two trends was a decline in organic impressions.Post length could easily affect the number of organic impressions. On averagepage posts are 157.7 characters, while user posts are 121.5 characters andmobile posts average 104.9 characters. Posts between 140 and 159 characterslong are, on average, 13.3% less engaging than posts between 120 and 139characters and 9% less engaging than posts between 100-119 characters. Whatthis demonstrates, is that the content many brands are competing against for aspot in the news feed, is more engaging and readable (Figure 1.7).160-179140-159120-139100-11980-9960-790.000% 0.005% 0.010% 0.015% 0.020% 0.025%718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720596http://www.alexa.com/siteinfo/facebook.com#EngagementCharacter LengthLonger Posts Perform PoorlyQuestions Non Questions Figure 1.7 10. Changes in Content Type are Hurting Total Coverage: Some types of contentgenerate more impressions than other types. For example, status posts haveweaker coverage on average, at 29.1% for pages with less than 100,000 fansand 54.8% for pages with more than 100,000 fans (Figure 1.8).We also see link coverage is decreasing, while status coverage is increasing. Apost with a link in it is more likely to be a sales-oriented post, especially inDecember. If true, then the increase in link posts may very well tie withengagement dropping in December.Brands Are Posting Weaker ContentStatus Videos Figure 1.8Photos Links100 200 300 400 500 600 700 800December, 2011November, 2011October, 2011September, 2011August, 2011July, 2011June, 2011Organic Impressions/1,000 Fans718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720510In the last 6 months there was an increase in the number of status posts. InJune, 43% of posts were status updates. At the same time the number of linksper month decreased 57%. On average, links have some of the highestcoverage, at 77% for pages with less than 100,000 fans and 69% for pages withmore than 100,000 fans (Figure 1.9). The decline in links and increase instatus posts affected overall organic impressions. Posting weakerperforming content ensured that fewer fans would see it. 11. Post Type Affects Organic CoverageFigure 1.9Pages With Less than 100,000 FansPages With 100,000+ Fans0 100 200 300 400 500 600 700 800 900VideoLinkQuestionPhotoPost Decay: Our analysis shows that 70% of interactions occur within 60minutes of a post. In November and December of 2011 brands posted anaverage of 1.19 and 1.17 times a day, respectively (Figure 1.9). In November70% of interactions, on average, occurred within 71.4 minutes, and inDecember 70% of interactions occurred within 70.2 minutes. Brands should beposting more to reap the benefits of potentially missed interactions.1.4Day1.2Per Posts 1.00.8of Number 0.60.4Average 0.22011 718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720511StatusOrganic Impressions/1,000 Fans0.0June, 2011 July, 2011 August,2011September,2011October,2011November,2011December,Brands Are Posting More OftenFigure 1.9 12. Highlights 82%ofimpressionsareorganicand17%arepaid. 77%ofpagesarenotadvertising. Largepagesthatadvertiseare42.9%moreengagingthanpagesthatdonot.Smallpagesare21.2%moreengaging. Thereisastrongpositivecorrelationbetweenpaidimpressionsandengagementrate.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720512Section 2: Paid Impressions HelpOver the last 6 months 82% of impressions wereorganic, 17% were paid, and 1% were viral (Figure2.1). Even if total paid impressions were to double,it would not have much of an effect on news feedcompetition. Other factors such as the number of adslots (which Facebook recently raised to 7) couldalso increase perceived competitiveness.Viral impressions have remained a small percentageof total impressions. Over the last 6 months, theirshare has decreased 82%, from an average of 3.3% inJuly to an average of .6% in December. Whencompared with overall organic impressions, there isa 0.69 correlation. Viral impressions are dependenton fans seeing posts and sharing them. Because theoverall number organic impressions decreased inNovember and December, the viral impressionsdecreased as well.A sizeable amount of what is listed as organic might be considered viral, too.When we run ads we see that the organic and viral components increase. In thesame way, when we run TV ads, we see more people searching for the brandname in Google. Not detailed in this research is the impact that Facebookcampaigns, organic or paid, have on other channels. The true incrementalboost of any social marketing effort is not attributable at the user level, so wehave to correlate traffic by channel.da 13. The Majority of Impressions Are OrganicViral Impressions,Figure 2.1OrganicImpressions, 82%Room for Growth: 3 in 4 Brands Are Not Advertising Yet718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 97205131%Paid Impressions,17%Only 23% of pages advertised on Facebook in the last 6 months, with theremainder relying on organic fan growth and impressions (Figure 2.2).Considering that only 17% of impressions are paid, this suggests that manybrands advertise only on a spot basis. Companies are running campaign-orientedads, as opposed to persistent word-of-mouth ads, which Facebookrecommends. In 2012, we will see whether Facebook can wean marketers froma start/stop mentality, as is the case with most forms of advertising, and shiftto see Facebook ads as organic amplification with no end date.BrandsAdvertising, 23%Brands NotAdvertising, 77%Figure 2.2 14. Pages with over 100,000 fans that have advertised in the last six months saw aboost in engagement rate and organic power. There is a positive correlation of0.47 between the number of paid impressions and engagement rate. Overall,pages advertising with more than 100,000 fans had a 42.9% higherengagement rate, while pages advertising with less than 100,000 fans had a21.2% higher engagement rate than those not advertising (Figure 2.3).Advertise To Get More EngagementFigure 2.3Less Than 100,000 Fans0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%Pages That Are AdvertisingPages That Are Not Advertising718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720514Interestingly, the effectiveness of advertising appears to be mostly linear.There is a 0.70 correlation between paid Impressions per 1,000 fans andengagement rate (Figure 2.4). The more a brand spends, the higher theirengagement. We should note that while paid activity does not affect organicrankings in search engines, this does not hold true in Facebook. 15. 14%12%10%8%6%4%2%0%Better paid Coverage Equals Better Engagement0 100 200 300 400 500 600 700 800 900 1,000Engagement RatePaid Impressions Per 1,000 FansPages that advertise get a 373% increase in organic impressions. This brings usback to an earlier point: the way Facebook defines viral traffic understates thepower of word of mouth.Share of Impressions For Pages That Advertise718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720515Note: Data includes ad impressions landing on external URLs.Figure 2.4Correlation=0.89Viral Impressions,0.4%Paid Impressions,44.7%OrganicImpressions,54.9%Figure 2.5 16. Highlights BetweenOctoberandDecember,theaverageCPCincreasedby135%andtheaverageCPMincreasedby55%. BoththeSocialCTRandnon-socialCTRhavedeclinedby56.8%and58%respectively. Between2010and2011theaverageCTRroseby6%andtheaverageCPCroseby34.8%.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720516Section 3: The Cost-Effectiveness of Advertising is DecreasingFacebooks ad inventory is growing rapidly nowthat there are more users and more ads per page.They havent even begun to show ads on mobile,which is 33% of all Facebook postings.7The number of brands advertising is increasingfaster than Facebook is growing. As a result theyare driving prices up, decreasing the cost-effectivenessof advertising. Traffic prices aregoing up only mildly, but the cost per click isincreasing at a faster rate than the cost of rawtraffic because of lower CTR.From October to December 2011, the averageCPC increased by 135% and the average CPMincreased by 55% (Figure 3.1).From October to December 2011, the ratioincreased from 2.38 to 2.42 impressions per social impression. For 2011, Socialads were 56.7% more likely to be clicked on than non-social ads. Fewer socialimpressions brings down the average CTR, resulting in the increased CPC andCPM we see.Despite the Social CTR being much greater thanthe non-social CTR, both declined in the lastthree months of 2011. Between October andDecember, the Social CTR decreased by 56.8%and the CTR decreased by 58% (Figure 3.2). Thischange is explained by the effect that total paidimpressions have on CTR, Social CTR and CPC.CTR has a -.77 correlation with paid impressions,Social CTR has a -0.84 correlation with paidimpressions and CPC has a 0.86 correlation withpaid impressions. Note that Facebooks recentchange in the number of ads displayed (six as ofNovember) could contribute heavily to thedecline in CTR and the increase in impressions.7 http://www.litmanlive.co.uk/blog/2011/05/twitter-facebook-mobile-stats/daCPM,CPC,andCTRThereisadirectrelationshipbetweenCTR,CPM,andCPC.Facebookwillchargemoreperclickiftheclickthroughrateislower.Brandshaveanincentivetoberelevantandsocial,whilemaintainingthismechanismalsomakesFacebookmoremoney.dada 17. It is possible that the decrease in CTR may be due to sales-driven ad copy thatwill have lower CTR since its not engagement-driven. The fact that CPMsincreased only slightly relative to CPC increases, indicates that the priceincreases are CTR-driven, not demand driven. A CPM increase means that addemand is outstripping Facebooks white-hot inventory growth.$1.20$1.00$0.80$0.60$0.40$0.20$0.00CPC and CPM IncreasingFigure 3.1CPC CPMCorrelation=0.97October, 2011 November, 2011 December, 20110.09%0.08%0.07%0.06%0.05%0.04%0.03%0.02%0.01%0.00%A Decline in Social and Non-Social CTRFigure 3.2CTRSocial CTRCorrelation=0.97October, 2011 November, 2011 December, 2011718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720517CPC: Cost Per Click.CPM: Cost Per 1,000 Impressions.Non-Social: Clickthrough Rate of all ads that are friend of fan targeting.Social CTR: Clickthrough Rate of friend of fan ads. 18. Though technically the cost of traffic is decreasing, it is still a bargain at $.34CPM. On average, $1,000 of ad spend hits 658,823.5 unique users (reach timesfrequency equals impressions).Advertisers Suffer Ad BurnoutUnlike search ads, Facebook ads burn out quickly if brands are not refreshingthem weekly, if not daily. Because more than half of Facebook users log indaily8, brands that practice "set it and forget it" show their ads dozens of timesto the same users. Of course these ads don't perform.Though prices are increasing, not all industries fared the same. When split upby category, CPC has a positive correlation of 0.41 with total impressions.There is a negative correlation of -0.23 between impressions and CTR. Thisappears to support a connection between impressions and CTR, as well asimpressions and CPC. For example, retailers had a 67% increase in CTRbetween 2010 and 2011. Over the same period, total impressions declined32.7%. Automotive companies, on the other hand, had a 66% decrease in CTR,while seeing a 73% increase in impressions in the same period (Figure3.39). Bigbrands do not do a better job in advertising compared to small biz, despitetheir tools, bigger budgets, and general sophistication.0.18%0.16%0.14%0.12%0.10%0.08%0.06%0.04%0.02%0.00%The Relationship Between CTR and ImpressionsFigure 3.3Correlation=-0.231 10 100 1,000 10,000 100,000CTRImpressions (In Millions)718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 97205188 https://www.facebook.com/press/info.php?statistics9 Figure 3.5 is based on 4,202,841,334 ad impressions from earlier research in 2010 plus an additional8,662,942,836 in 2011 19. From 2010 to 2011 the cost of traffic increased as well. The average CPC of2011 was up 34.8% from $0.69 to $0.93. Despite the increased CPC, the averageCTR increased by 6%. There were few exceptions:OverallTabloids and BlogsE-commerceTravelAutomotiveNon-profitCosmeticsRetailersRestaurantConsumer Packaged GoodsMisc.Local ServicesFinancial ServicesTelecommunicationsConference and EventsInternet and SoftwareHealth Care718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720519 Retailers in 2011 paid less than half the CPC of what they paid in 2010.This can be explained by a 67% increase in CTR due to an 89% increase intotal social impressions. This reflects the introduction of sponsored likeads, making it easier for brands to utilize FOF targeting. The CPC for telecommunications companies decreased by 21%, despite a7% decrease in CTR. Decreasing competition in this area led to fewerimpressions, and less competition over ad inventory. The CTR and CPC of restaurants remained the same between 2010 and2011. Decreasing competition demonstrated by fewer impressionsbalanced the natural increase in the cost of traffic.0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16% 0.18%Media and EntertainmentCTR2011 2010 Figure 3.4CorrelationBetween3.4and3.5=-0.81 20. 2011 2010 Figure 3.5OverallHealth CareInternet and SoftwareTelecommunicationsFinancial ServicesLocal ServicesConference and EventsMisc.RestaurantRetailersConsumer Packaged GoodsCosmeticsTravelE-commerceNon-profitAutomotiveMedia and EntertainmentTabloids and BlogsCPCSocial Brands Fare BetterThough total impressions certainly played a part in changes to CTR and CPC inboth 2010 and 2011, the type of brand played a much larger role in the overallCTR and CPC. Social brands like retailers, restaurants, tabloids and blogs had ahigher CTR and lower CPC. At the other end of the spectrum, non-socialbrands such as Health Care providers and Telecommunications companiescontinued to perform poorly in comparison.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720520$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 21. What Brands Are SayingYear over year the amount of content available on Facebook has increaseddramatically. More brands are beginning to leverage this channel and while thenumber of consumers on Facebook continues to grow, it is going to get harderfor brands to attentively engage consumers. Here are some key pointshighlighted in this report.Successful brands need to focus on increasing interaction effectiveness withtheir consumer base. You do this by increasing the frequency of exposure,paying close attention to what is being discussed, and focused advertising.Interactions with consumers will occur as you post and more than 70% of theinteraction occurs within the first hour. So keep up your efforts on postingmore often and monitoring right after you post versus posting and going tobed. Also, a post with a question tends to drive increased interaction.Dont forget that advertising does work. Your engagement rate can go up by21% to 43% by knowing what to say, when to say, and of course how you saythings on Facebook.Brands have a significant opportunity to leverage social. The key to success isto understand how much of the social data is public, how to collect the datawithout alienating the consumer, and how best to quickly use the data that iscollected.Sundeep Kapur, Author www.emailyogi.com, Digital Evangelist -NCR"This research by Dennis and his Blitzlocal team provides a measured view, andhelps makes sense, of what we already knew - we are drowning in data. It willtake the use of effective big data filtering platforms like Blitzmetrics to allowbrands to effectively sift through the data noise as well as successfully engagewith the right conversations and the right consumers."Lee Bogner, Consulting marketing technologist and social businessanalyst - @leebogner, Social Business Ambassadors and BoardDirector, Social Media Club LI. Reach718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720521 22. At Gordmans, we were able to capitalize on the low CPC in 2011 and run amultitude of ads throughout the year. We found that our paid advertising actsas a catalyst in driving additional organic impressions; because of this, we sawan increase in both our organic and paid performance last year.718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720522Veronica Stecker, Manager of Converged Channel Advertising GordmansAbout the Data Set:This report data spans a 7-month time period from June 1, 2011, to December31, 2011: 11,365 pages 5,744,550 admin and user posts 76,202,654 Facebook users spread over 75 countries 91,009,142,252 organic impressions 27,969,233,010 paid impressions 1,142,652,653 viral impressions. 120,111,027,915 total impressionsLimitations: It is important to note that this study lacked data on applicationsand open graph data, which are increasing.On January 18, 2011 Facebook announced the Open Graph going live on theFacebook developers blog. In the coming months it will be interesting to seetheir effects on organic impressions and engagement. Industry results werebased on categorizing campaigns in our dataset, which means some industrieshad only a single brand and may not be representative of an industrysperformance overall. Our analysis does not include premium ads, since theyare reported in separate systems.For further questions about this research, please emaildennis.yu@blitzlocal.com or message us at facebook.com/blitzlocalYou can find some of our data on organic and paid impressions here:https://blitzmetrics.com/dashboard/?account=wsj&page=wsjAbout BlitzLocalBlitzLocal is social analytics company founded in 2006 by Dennis Yu andheadquartered in Portland, Oregon with 32 people. Their product,BlitzMetrics, measures social for brands in retail, CPG, and network TV. 23. 718 SW Alder St., Suite 200 www.blitzlocal.com www.facebook.com/blitzlocalPortland, OR 9720523Contributing StaffElliot SwanInteraction DesignerJustin DunlapDirector of EngineerTravis KingManager of Facebook MarketingCarrie MedinaEditorDennis Yu Ken PennyChief Executive Officer VP of OperationsGlossary of Terms:Coverage: Impressions per 1,000 fansEngagement: Page interactions divided by page fan count.Frequency: The number of times each user is seeing a post/page.Organic Impressions: Impressions in the news feed, ticker, and from fansvisiting a brands page.Paid Impressions: Number of ad impressions.CPC: Cost Per Click.CPM: Cost Per 1,000 Impressions.CTR: Clickthrough Rate of all ads.Social CTR: Clickthrough Rate of friend of fan ads.Social Impressions: Impressions for friend of fan ads.

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