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How Facebook is changing the way we interact with brands Thomas Jestin, co-founder of KRDS

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How brands should harness the viral power of Facebook to reach out to users?Here is a description of Facebook tools for brands: Pages, Applications, Connect and Live Stream, with some concrete case studies.

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Page 1: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

How Facebook ischanging the way weinteract with brands

Thomas Jestin, co-founder of KRDS

Page 2: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

A fact to start with

• Pepsi spent more than $250 million in Super Bowl TV ads during the past 20 years

• This year, Pepsi opted out of TV…

…in favor of its online Facebook-connected Refresh Everything charity project

Page 3: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

A fact to start with

“Instead of getting 30 seconds to connect with their customers, they’re getting 30 days”

Mike Murphy,

vice-president of global sales at Facebook

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Brands can no longer ignore Facebook

• 400 million monthly active users

• Certainly

1 billion before 2011

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200 million daily active users

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55 minutes per day per average user

« Must dash….need to spend some time on Facebook »

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60 million status updates posted each day

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3 billion photos uploaded to the site each month

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20 billion pieces of content shared each month

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Now, Facebook leads sharing on the web!

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The advent of Facebook

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So brands can no longer ignore Facebook…

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But are they welcome on Facebook?

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Or are they regarded as party crashers?

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Good news!

Brands are rather welcome!

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The power of Facebook Pages:

A once in a decade marketing revolution

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A Facebook page:

“a tool that allows entities such as public figures and organizations to broadcast information to their fans’ Facebookhomepages……. for free…….and without limits”

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Easy subscription to a brand’s news

=

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A Multimedia Publishing tool

News can be:

• Pictures

• Videos

• Questions to fans

• Notes

• Links

• Event

Page 20: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

The Story Telling era

To leverage the full potentialof Facebook, brands need to tell Facebook-tailored stories to their fans, using all media available.

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The Story Telling era

« On Facebook, it’s far better to publish ten1-minute-long videos, one every day….

…than to publish a 10-minutes-long videoat once »

Page 22: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

An interactive tool

Fans can:

• Watch videos straight from their home pages

• Comment content

• Like content

• Share content with their friends

Page 23: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

A very popular tool!

• More than 3 million active Pages on Facebook

• More than 20 million new fans of Pages each day

• More than 5.3 billion fans

• Average user becomes a fan of 4 Pages each month

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A boon for local businesses

• More than 1.5 million local businesses have active Pages on Facebook

« Facebook fans visit more, they spend more during their visit, they have a higher attachment to the brand »

a study from Rice University shows.

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Some brands are lucky…

…they’re already popular outside of Facebookand have gained fans effortlessly

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Less famous brands need to market actively theirpages

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The targeting power of Facebook Ads

Brands can target their audience as it has never been possible before

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Facebook Ads Case Study

• Avenue 100 Media Solutions, a performance marketing company, ran a CPC campaign on Facebook in januarythat served more than 3 billion impressions

• For a specific product and ad group within its campaign, it achieved:

– 120% difference in unique CTR

– 100% difference in conversion rate

– 455% difference in margin

compared to similar campaigns it ran with search engines

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Ads-driven users have to be incentivized to become fans with offers or special content

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BNP Paribas Case Study

We want

fans!

OK!

But…..

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BNP Paribas Case Study

That’s a tough time being a bank right now

Let’s try something different

BNP Paribas prides itself for supporting the film industry

Why not give away movietickets to fans?

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On BNP Paribas FB Page

A daily sweeptake: 1000 movietickets to be won every dayduring 1 month

To take part, users have to become fans of the bank

Sample of the winners of the day before

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Users were prompted to share the offer withfriends

33

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BNP Paribas Case Study

Traffic fromFacebook Ads to the

Facebook Page

Daily sweepstake on the Facebook Page

120 000 fans

0 fan 1 month laterNumber 1 bankon Facebook in terms of fans

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Follow the golden rule!

• Most of the content published by a brand has to remainconsistent with the reason why users became fans in the first place

• If you don’t, fans will simply hide your posts

• In BNP Paribas case:

– the bank should keep posting about films 4 out of 5 times

– and post bank offers 1 out of 5 times

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The power of Facebook Apps

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What is a Facebook app?

a website fully embedded in Facebook

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What is a Facebook app?

where users can use Facebook viral features to seamlessly share what they’re doing with their friends

Page 39: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

What is a Facebook app?

where users can use Facebook viral features to seamlessly share what they’re doing with their friends

Page 40: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

A new app is launched

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The app is advertised among a first set of users

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Some users interact with the app

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They share their activity with friends

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Some friends use the app, and share it with their friends…

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A successful platform

• More than 1 million developers and entrepreneurs from more than 180 countries

• Every month, more than 70% of Facebook users engage with applications

• More than 500,000 active applications

• More than 250 applications > 1 million monthly active users

Page 46: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Case Study: « The greatest quiz of France »

Number 1 French TV Channel

I want:• To create buzz about mynew TV show

• Traffic to my website

OK!

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KRDS’ answer

The Facebook app« The grestest quiz of

France »

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FB app « The grestest quiz of France »

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Step 1

Crosspromotion of the app on KRDS network of FB apps

20 000 users drivento the app in 4 days

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Step 2: let the app go viral!

Users are prompted to invite their friends…

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Step 2: let the app go viral!

…and to publish their results on their Facebook wall and friends’ home pages

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30 days later…

Viral bonus = 1,5M/20k = 75

20 000Ads-driven users

1 500 000 Virality-driven users

A good concept

The art of displayingviral features at the right time and place

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Ads-driven usersx

Viral Bonus=

Total number of users

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Branding

10 million Facebookusers saw the brand, even if they didn’t play

40 million impressions of the quiz resultsstory on users’ home pages

In october 2009

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Driving traffic to www.tf1.fr

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Driving traffic to www.tf1.fr

• was the top source of trafficto the page dedicated to the TV show on www.tf1.fr

• drove up to 40 000 users/week to www.tf1.fr

« The greatest quiz of France »…

Page 57: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Facebook Live Stream

When watching a show online

becomes social

Page 58: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Brands can broadcast live their events and let Facebookusers comment on it thanks to the Facebook Live Stream

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When users comment, it updates their status, sofriends can see it and click to join the conversation

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Louis Vuitton’sFacebook page gained 60k fans during the weektheir fashion show was broadcast

Today: more than900k fans

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Simultaneous use of TV and PC

• 14% of Super Bowl viewers also spent time online during the game, at an average of 29 minutes per user

• Simultaneous use of TV and PC is a growing trend

• The FB Live Stream: the perfect tool to leverage that trend:

it enables internet users to socialize with their friends about what they’re watching on TV, while they’re watching!

Page 62: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Facebook Connect

“Most of Facebook’s interaction will take place off of the website Facebook.com in the future”

Mark Zuckerberg, founder of Facebook

Page 63: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

What is Facebook Connect ?

Facebook Connect is a powerful set of APIs for developers that lets users bring their identity and connections everywhere.

Page 64: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

JibJab is a ten year-old company that offers customizable digital greeting cards and videos

Case Study: JibJab

Page 65: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Case Study: JibJab

Seamless subscription to the site with your Facebookidentity: it only takes few seconds!

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Access to users’ data: FB Connect enables JibJab to provide users a tailored experience

Case Study: JibJab

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Access to users’ data: FB Connect enables JibJab to provide users a tailored experience

Case Study: JibJab

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Case Study: JibJab

Ability to share content back to Facebook with friends in few clicks

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Case Study: JibJab

Ability to share content back to Facebook with friends in few clicks

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Case Study: JibJab

Before Facebook Connect

• 8 years to reach 1.5 million registered users in the era of email

• When sharing content, users would give 2 or 3 emails

With Facebook Connect

• only 5 months to acquire 1.5 million registered users

• up to 20 clicks back to JibJab.com for each item posted on Facebook

Page 71: Lithuania   Krds   How Facebook Is Changing The Way We Interact With Brands - KRDS - LOGIN 2010 Vilnius, Lithuania

Last words

• Facebook is not a fashion trend, be sure it’s here to last

• Brands should go on Facebook as soon as they can to test and learn about all the tools available: page, app, connect, live stream

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www.Krds.com

Twitter.com/KRDS

Fr.allfacebook.com

Facebook.com/KRDS

Thank You!