L2 Facebook IQ 2012

© L2 2012 L2ThinkTank.com RepRoductions pRohibited

Facebook IQINDEX®

June 12, 2012

SCOTT GALLOWAYNYU Stern

http://www.L2ThinkTank.com

Want to know more about your brand’s ranking? Contact us

2© L2 2012 L2ThinkTank.com RepRoductions pRohibited

Facebook IQINDEX®

On the date of its IPO, Facebook was worth more than LVMH, PPR, and Richemont combined. Ten days on, the stock had lost a third of its value. The culprit? Facebook investors shifted the measurement stick from promise to performance.

similarly, the marketing and digital professionals at prestige organizations charged with building and engaging communities on the world’s biggest platform will face heightened expectations and scrutiny. As tomorrow becomes today for prestige executives, the issue of what, and how, return is achieved on Facebook takes center stage.

Missing the “Social” in Social Media prestige communities grew more than 200 percent year over year as brands began investing in Facebook advertising. however, the industry is still struggling to embrace the “social” in social media. More than 20 percent of prestige brands still do not engage in any two-way conversation, and a third prohibit fan posts on their Facebook walls. the growth coupled with numb response times has led to a decline in engagement rates of almost 50 percent since our first Facebook IQ Index® in June 2011.

TOMORROW

Facebook IQ Index® Video Click to Play

becomes today

mailto:info%40l2thinktank.com?subject=

mailto:info%40L2ThinkTank.com?subject=Digital%20IQ%20Inquiry

http://l2thinktank.com/


http://www.l2thinktank.com/research/facebook-iq-index-2012/

http://www.l2thinktank.com/research/facebook-iq-index-2012/



Facebook IQINDEX®

Facebook Is LocalA bright spot for prestige brands on Facebook is growth and engagement in emerging markets, mimicking some of the macro growth trends in the industry. Forty-one percent of brands

now maintain at least one local country page. these local Facebook

pages have grown at twice the rate of Global and u.s. prestige

communities and register 50 percent higher engagement. Facebook’s

Most popular city data provides further evidence that the center of

gravity is shifting in the industry. More than 44 percent of prestige

brands, including many icons, register an emerging-market city (e.g.,

taipei, tbilisi, tunis, etc.) as the top place where people are talking

about the brand on Facebook.

Icons Strike BackA lot has changed since the first Facebook IQ Index® a year ago. some of the prestige industry’s iconic brands are this year’s

biggest winners, including bulgari, christian dior, and cartier, which

all catapulted from challenged to Gifted on the backs of massive

community growth, innovative programming, and stronger integration.

Notorious digital laggard Prada finally joined the Facebook party in

January 2012, moving from Feeble to Average. however, the Facebook

IQ top 10 is still dominated by retailers and beauty brands that

have been deft at facilitating higher rates of engagement via user-

generated content and local pages and posts.

Facebook IQ = Shareholder Valueour thesis is that competence on Facebook is linked to shareholder growth and is a proxy for innovation within an organization. this study, released with our partners at buddy Media,

attempts to quantify the Facebook competence of 100 iconic brands

across beauty, Fashion, specialty Retail, and Watches & Jewelry.

our aim is to provide a robust tool to diagnose digital strengths and

weaknesses and help managers at prestige brands achieve greater

return on incremental investment.

Like the platform we are assessing, our methodology is dynamic

and we hope you will reach out with comments that improve our

methodology, investigation, and findings. You can reach me at

[email protected].

Regards,

SCOTT GaLLOWay

Founder, L2

clinical professor of Marketing,

NYU Stern





mailto:scott%40stern.nyu.edu?subject=



Facebook IQINDEX®

TaBLE OF CONTENTSClick to Jump-To:

05 Methodology

06 Facebook IQ Rankings06 Genius 07 Gifted 09 Average 11 challenged 12 Feeble

13 Key Findings13 Facebook Growth 14 the timeline effect 15 declining engagement 17 Facebook is Local 21 F-commerce Failing 24 Fan & content engagement 28 Facebook integration

29 Flash of Genius29 in the company of Genius: Macy’s 31 Global citizen (pretty powerful): bobbi brown 32 scale + data: burberry 33 Mother’s day: L’occitane 34 Facebook in Japan: coach 35 bring it back: bobbi brown & M·A·c 36 Facebook offers: Kate spade & Macy’s 37 Miracle Maker: sK-ii 38 pilot Aptitude test: iWc







Facebook IQINDEX®

aBOUT THE RaNKING

The Methodology

Facebook IQ Classes

Genius 140+

Facebook competence is a point of competitive differentiation for these brands

Gifted 110–139

brands demonstrate a comprehensive understanding of Facebook marketing and continue to grow their fan bases while experimenting with programs and tabs

Average 90–109

Lack of innovation categorizes the Facebook efforts of these brands

Challenged 70–89

these brands have gone through the motions of establishing a Facebook presence but have yet to allocate financial or creative horsepower

Feeble <70

Weak or no official presence on the world’s largest and fastest growing platform

Programming 20% Brand content, responsiveness, and innovation • customized tabs and interactive applications • Response frequency and speed • use of gated tabs • posting frequency • brand photos and videos • F-commerce and e-commerce integration • Facebook advertising and offers • innovative campaigns

Integration 10%

Integration of Facebook across brand digital platforms • promotion of Facebook page on other digital properties including: site, mobile, social media, email marketing, and blogs • search engine visibility • incorporation of additional social media properties • shareability of site content • social shopping and Facebook connect • customer service accessibility

Size & Growth 35%

Size and growth on the platform • number of “Likes” • Growth Rate • Absolute Growth • Global community

Engagement 35%

Fan reaction and interaction • Fan engagement with brand posts • number of fan posts • Fan engagement with fan posts • Fan participation in programs and applications • Fan photos and videos

35% Size & Growth

20% Programming

35% Engagement

10% Integration






Facebook IQINDEX®

6Want to know more about your brand’s ranking? Contact us

1

2

3

3

RANK BRAND CATEGORY FACEBOOK IQ DESCRIPTION

161

148

146

146

This Timeline pioneer’s page is big, growing, and well-integrated across channels; Constantly updated program-ming sets the bar

From geo-targeted special offers to fully-functional gift card F-commerce application, beauty maven delivers

Hypnose Doll Eyes app and Rouge in Love Lookbook provide a lesson on rolling out programming across geographies

Outstanding integration across digital properties complements exceptional growth in Facebook fan base

Genius BrandsFaCEBOOK IQ RaNKING = Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski

United Colors of BenettonEl Corte Inglés

Esteé LauderPandora

AvedaBulgari

Bare EscentualsChristian Dior

Marks & SpencerOscar de la RentaBenefit Cosmetics

M∙A∙CTiffany & Co.

LacosteLouis Vuitton

CliniqueCoachGucci

CartierFendi

Tommy HilfigerBobbi Brown

BurberryJimmy Choo

Baume et MercierNordstromTory Burch

Bottega VenetaChanelChloé

Marc Jacobs

AVERAGEHugo BossTAG Heuer

PradaVersace

Calvin KleinElizabeth Arden

Dolce & GabbanaGiorgio Armani

Ralph LaurenSaks Fifth AvenueJaeger-LeCoultre

Alexander McQueenBally

Barneys New YorkNARS

L’Occitane en ProvenceClarins

David YurmanMontblanc

SK-IIHarrodsChopard

OmegaNeiman Marcus

Yves Saint LaurentGaleries Lafayette

MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots

Harry WinstonPiagetHublot

ShiseidoVacheron Constantin

Bergdorf GoodmanKate Spade

ValentinoKiehl’s

Bloomingdale’sPhilosophy

Officine PaneraiSalvatore Ferragamo

LonginesPerricone MD

Le Bon Marché Rive Gauche

Audemars PiguetDiane von Furstenberg

House of FraserSelfridges

Raymond Weil

FEEBLEDonna Karan New York

Van Cleef & ArpelsMax Mara

Ermenegildo ZegnaRolex

BaccaratHarvey Nichols

DeBeersPrintemps

Patek Philippe





http://www.facebook.com/michaelkors

http://www.facebook.com/lancome

http://www.facebook.com/Sephora

http://www.facebook.com/Macys

http://www.facebook.com/michaelkors

http://www.facebook.com/lancome

http://www.facebook.com/Sephora

http://www.facebook.com/Macys


Facebook IQINDEX®

7


5 138 Stirring "Pilot Aptitude Test" game app catapults watchmaker to top of category

6 133"Social Shop" takes Facebook commerce site-side; "Lights, Camera, Action" app delights

7 131Strong community growth and interactive apps compensate for average engagement and integration

8 129 Stellar growth offsets average engagement

9 128 "Virtual Clothes Model" app scores

10 127 Strong across all dimensions

10 127Early adopter gets Facebook Connect and power of local programming

12 126"You Create, We Donate" app threads UGC and CSR

12 126Global page strikes balance between size and engagement

14 125Community-oriented page is integrated across brand’s wider digital footprint

Gifted BrandsFaCEBOOK IQ RaNKING



14 125 Icon boasts luxury’s third-largest fan base

16 124Quick responder to fan comments and concerns

16 124Facebook-exclusive products provide entry point to brand; exceptional engagement on wall

18 123 Best-in-show integration

18 123Facebook-integrated "Shop Together" feature complements impressive size and growth of global community

18 123Seamless integration of “What Makes Love True” microsite

21 122Rapidly growing Facebook fan base is the second-largest

22 120More than 200 percent year-over-year growth and high engagement

23 119Fans are encouraged to rate and review their favorite products

23 119Fosters dialogue via responsiveness to its formidable community

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




Facebook IQINDEX®

8

Gifted Brands continued...FaCEBOOK IQ RaNKING



25 116Gucci pushes opportunity to Connect with its 8 million fans

26 114“L’Odyssée de Cartier” campaign threads traditional and social channels inspiring 50 percent fan growth in 30 days

26 114Strong page growth but programming needs a refresh

26 114"Get Prepped" app outfits Facebook com-munity

29 113 Deft global community management

29 113Behemoth community, one of three brands experimenting with Facebook Connect

29 113Should leverage “Stylemakers” program to boost UGC

32 112Extensive programming including “What Do You Think?” poll keeps fans engaged

32 112“Share Your Stories” solicits UGC while custom tabs buttress integration


32 112"Facebook Shop" still garners 8,000 monthly users a year later

35 111Brand programming on the rise; fan growth should follow

35 111Fan engagement is sorely missing from this 6.6 million strong page

35 111Integrated "L'Eau de Chloé" contest com-bines Mobile, Tumblr, and Facebook

35 111Needs better Facebook integration on site to complement strong engagement

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




Facebook IQINDEX®

9

Average BrandsFaCEBOOK IQ RaNKING



39 107Delivers first luxury 3D experience to the social network

39 107Interactive "Apollo Project" app live-streams webcast via Facebook

41 106 Late to platform, but hit ground running

41 106Lackluster programming and absence of UGC weaken brand's presence

43 105Tackles global vs. local dilemma with multilingual tabs

43 105Beauty Buzz tab highlights must-haves and games

45 103Barring fan posts, photos, or videos misses opportunity to engage with 5.4 million followers

45 103Rapid growth overshadowed by anemic engagement

45 103"Life in Color" app delivers compensates for low engagement

45 103Brand skillfully employs social media cross-promotion with "See U @Saks" Instagram feed and Pinterest custom tab


49 101Social media "Mad About Reverso" poster contest combines Instagram and Facebook

50 100No custom tabs and low fan engagement signal missed opportunity to capitalize on large fan base

50 100Community is still small despite almost 200% growth year over year

50 100 "Mother's Day Contest" reflects potential

50 100 Site and social media integration fall short

54 98Tailors content for its 54 local pages across the globe

55 97"Spa Life" app garners 50,000 monthly users, uninspired elsewhere

55 97Additional programming would complement steady growth

57 96Leverages platform for CSR and customer service

57 96Best-in-class engagement via fan photos, videos, posts, and participation in "Compliments" app

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




Facebook IQINDEX®

10

Average Brands continued...FaCEBOOK IQ RaNKING



59 95"Harrods Window" Pinterest contest allows users to vote via Facebook tab

60 94“Happy Diamonds” mobile to Facebook application signals innovation

60 94Brand needs additional programming to sustain fan activity

62 93"NM@SWSX Contest" app cleverly blends offline and online

62 93 Limits engagement by inhibiting fan posts

64 92Responds to fan posts and frequently refreshes content

64 92Misses opportunity to integrate Facebook and site

64 92Seamlessly integrates Facebook with social media, marketing, blog, site, and customer service efforts


64 92Combines UGC and CSR encouraging users to create and share environmental pledges

68 91Better integration would boost weak year-over-year growth

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




Facebook IQINDEX®

11

Challenged BrandsFaCEBOOK IQ RaNKING



69 89Encourages fan content through “Say Yes” competition

69 89High fan-to-brand engagement is a bright spot

69 89New “like”-gated competition is a step in the right direction

72 87 “Live Series” tab fails to deliver engagement

72 87Brand scores points with diverse, fresh programming across all of its local pages

74 86“Our World” tab highlights wealth of digital properties

75 85Leverages employees with "What I'm wearing today", but held back by slow fan growth

75 85Testing Facebook offers and "Surprise Sale" but falters on engagement

75 85 Treats page as a broadcast channel

78 84One of only ten brands that integrates ratings and reviews through Facebook

79 83Interactive "Prom 2012" app shines, but work needed to integrate Facebook features on site


79 83Cross-platform "Facebook Fan Favorites" features popular products on site, but stagnant fan growth hurts IQ

81 82Engaged fan base and strong cross-platform social media integration, but lacks growth

81 82Not allowing fans to post is missed opportunity

83 80 Limited programming and growth

83 80Perricone's 30,000 strong, highly-engaged fan base has room to grow

85 77With fewer than 10,000 likes, brand's community is smallest in Index

86 75Abundant Facebook content is not shareable

87 74Early F-commerce adopter has stopped innovating

87 74Weekly competitions fuel highest year-over-year growth in the Index; programming needs to catch up

87 74British retailer integrates Pinterest, Instagram, and Twitter, but lacks interactivity

90 72Strong social media integration overshadowed by limited growth

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




Facebook IQINDEX®

12

Feeble BrandsFaCEBOOK IQ RaNKING



91 68 Fashion icon doesn’t allow fan posts

92 64Lackluster performance across all dimensions

93 63Site content is not shareable; Facebook page features no recent programming

94 58Innovating with augmented reality, but must grow fan base to become relevant

95 55One of only two brands in the study that have yet to join the platform, keeping 300,000 fans waiting

96 54Page features beautiful visuals but community is less than 20,000

96 54Strong integration scores are hindered by limited size and growth

98 52 No custom tabs nor UGC


99 45One of seven brands utilizing platform for HR, but consumer-facing efforts are unfocused

37Active fans keep unofficial page going for this iconic non-believer 100

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail

GENIUSMacy’s

SephoraLancôme

Michael Kors

GIFTEDIWC

SmashboxSwarovski



AvedaBulgari





CliniqueCoachGucci

CartierFendi


BurberryJimmy Choo



Marc Jacobs


PradaVersace








SK-IIHarrodsChopard

OmegaNeiman Marcus


MovadoNET-A-PORTER

OriginsHermés

CHALLENGEDBoots




ValentinoKiehl’s







Raymond Weil





DeBeersPrintemps

Patek Philippe




13

Key Findings


Facebook IQINDEX®

Still Growing Facebook communities remain on an impressive

trajectory, up an average 216 percent year on year—

adding an average 750,000 fans/brand since May 2011.

dior led the pack, catapulting from 900,000 to over

8 million fans in a year. peer icons burberry and Louis

Vuitton have also added more than 5 million fans each.

“Facebook is not like Twitter, where a user sees every

post in their feed. Facebook’s EdgeRank algorithm

decides what content a user sees. Prestige brands

need to master how all of their Facebook content works together—from

Newsfeed posts to apps to advertising. There is no difference between

content and ads. The savviest brands are using Facebook ads to

amplify their most engaging content.” – Michael Lazerow | CEO, Buddy Media

1,131

2011

2012

1,552

1,51

9

1,73

1

1,723

3,438

Q1

Q2 Q

2

Q1

Q3

Q4

3,500

3,000

2,500

2,000

aVERaGE “LIKES” PER Day

Prestige Brand Facebook Communities

(Q1 2011– May 20, 2012)





14

Key Findings


Facebook IQINDEX®

Analysis indicates that the first quarter of 2012 was the

strongest to-date for prestige communities, with brands

adding an average of nearly 3,500 fans per day, double

the previous average. Although attribution is opaque,

our thesis is that brands ramped their investment in

Facebook advertising in anticipation of the timeline

launch (some brands received beta access) and as hype

for Facebook’s ipo grew.

however, analysis suggests the move to the timeline

interface throughout February and March in and of

itself does not drive growth. prestige brands added 125

percent percent more fans in the 50 days before, vs. 50

days after, the timeline launch.

continued...

The Timeline Effect? average Prestige Brand Page Growth

Before & after Timeline Launch

50 DayS 50 DayS

TIM

EL

INE

192,921New Fans

85,762New Fans

DIO

R 7

,06

3,9

33

BU

RB

ER

RY

6,6

42

,71

3

LOU

IS V

UIT

TO

N 5

,11

2,5

27

LA

CO

ST

E 3

,96

7,2

99

MA

CY

’S 3

,71

8,9

28

GU

CC

I 3

,51

1,6

23

CH

AN

EL

2,9

22

,60

0

DO

LC

E &

GA

BB

AN

A

2,5

07

,071

TO

MM

Y H

ILF

IGE

R

2,0

93

,79

3

CA

LVIN

KL

EIN

2,6

85

,79

2

765%

107%

204%

70%199%

79%

79%187%

88%

174%

TOP-10 FaSTEST-GROWING FaCEBOOK PaGES

yOy absolute Growth in “Likes”

(May 2011– May 2012)

FASHION SPECIALTY RETAIL





15

Key Findings


Facebook IQINDEX®

Engagement DecliningWhile community growth is up, engagement is down

significantly year on year. The average interaction rate, or

the percentage of the community liking—commenting on

brand posts—has declined almost 50 percent, from an

average of 0.17% in 2011 to 0.09% in 2012. surprisingly,

Facebook pages with less than a million fans measured

the highest declines. pages with more than a million fans

registered average declines in interaction of just 0.01%,

suggesting that brands that invested significantly in page

growth also work to optimize their content.

Although many Watch & Jewelry brands were late to the

Facebook game, the category leads the index with an

average interaction rate of 0.18% and registered the

lowest decline year over year.

TOP-10 FaCEBOOK PaGES

Like & Comment Interaction Rate (Pages > 50,000)

(May 2012)

0.36%Audemars Piguet

Omega

Van Cleef & Arpels

Bally

Cartier

Bulgari

Jaeger-LeCoultre

David Yurman

Piaget

Valentino

0.28%

0.27%

0.24%

0.21%

0.20%

0.18%

0.16%

0.16%

0.15%

Watches & Jewelry Fashion Beauty & Cosmetics Specialty Retail

0.20%

0.18% 0.16%

0.08%

0.13%

0.05% 0.04%

N/A

aVERaGE INTERaCTION RaTE By CaTEGORy

(2011 vs. 2012)

20112012





16

Key Findings


Facebook IQINDEX®

Size vs. EngagementFew prestige brands are able to thread the needle between

size and engagement. in the 2012 index, christian dior

& tiffany & co. strike this balance, registering a position

in the “tribes” quadrant. Although dior’s engagement

has dropped significantly, from 0.18% to 0.10%, since the

September 2011 release of our Digital IQ Index®: beauty,

the brand has registered the largest fan growth of any

brand in the Facebook index. despite a community of 8

million plus, the brand continues to exceed the average

interaction rate of 0.09% with a wealth of celebrity content

from its recently launched digital magazine, dior Mag.

tiffany & co.’s community of 2.2 million plus is one of

the largest in its category. the brand has maintained a

disciplined commitment to extending the tips and user-

generated content from its “What Makes Love true”

microsite to its Facebook wall.

FaCEBOOK PaGE SIZE VS. FaN ENGaGEMENT

(April–May 2012)

TRIBESFAMILIES

CROWDSCOHORTS

Tiffany & Co.

Dior

Louis Vuitton

Burberry

BulgariMichael Kors

Cartier

OMEGA Watches

Audemars Piguet

Officine Panerai

Vacheron Constantin

EN

Ga

GE

ME

NT

PaGE SIZE

BRANDS IN THE “TRIBES” CATEGORY

BRANDS NARROWING ON “TRIBES” CATEGORY





17

Key Findings


Facebook IQINDEX®

NEW YORK CITY

Audemars PiguetBergdorf GoodmanBloomingdale’sBottega VenetaDavid YurmanMacy’sMovadoNeiman MarcusOscar de la RentaPerricone MDSaks Fifth AvenueTory BurchBarneys New YorkDiane Von FurstenbergElizabeth ArdenBare EscentualsOriginsSephoraShiseidoKiehl’sBobbi BrownEstée LauderCliniqueLancômeL’Occitane

LONDON

Christian DiorHarrodsHarvey NicholsHouse of FraserHugo BossJimmy ChooNET-A-PORTERRalph LaurenRaymond WeilSelfridgesAlexander McQueenDeBeersBootsMarks & Spencer

LOS ANGELES

NordstromCoach

Smashbox

Calvin KleinGiorgio Armani

Emenegildo Zegna

MEXICO CITYBaume et MercierLe Bon Marche Rive GaucheBaccaratPrintempsYves Saint LaurentGaleries Lafayette

PARIS

BANGKOK

NARSPrada

Swarovski

BulgariOfficine PaneraiKate Spade

SINGAPORE

HublotLongines

NEW DELHI

HermèsTommy HilfigerEl Corte Ingles

MADRID

TAIPEI

BallyBurberryIWCJaeger-LecoultreLouis VuittonMichael KorsPiagetSalvatore FerragamoTiffanyVan Cleef & ArpelsChloeGucciMarc JacobsMontblancAveda

TBILISI

Dolce & GabbanaDonna Karan New YorkMax MaraValentino

TEHRAN

OmegaCartier

Chopard Clarins

TUNIS

ATHENSISTANBULJAKARTAKARACHI

KUALA LUMPURLIMA

MAKATIPHOENIX

RIYADHROME

SÃO PAULOSEOUL

SYDNEY

Vacheron ConstantinLacosteTAG HeuerVersaceSK-IIUnited Colors of BenettonBenefit CosmeticsPhilosophyHarry WinstonFendiM·A·CChanelPandora

Emerging Centers of Gravity With the launch of timeline, Facebook began publishing the

“Most popular city” for brand pages, indicating the city with the

highest concentration of “people talking About this” (ptAt).

this metric is a map of global growth, emerging evangelists

and, over the longer term, sales.

New York and London dominate the ranks of the prestige

industry’s most popular Facebook cities, while paris is fourth

overall. However, the majority of brands that are popular in

these luxury capitals maintain local country Facebook accounts,

catering to each of their markets, or are single-market retailers.

More than 44 percent of prestige brands, including many

luxury’s icons, register an emerging market city (e.g., taipai,

tblisi, tunis, etc.) as their top city, suggesting a tectonic shift

in the center of gravity for prestige. While firms invest millions

in “big data” tools and analysis, Facebook’s ptAt by city

may be the most powerful compass for regional investment.

brands may be greeted with open arms in markets not

currently on their radar.

“Most popular city” data can also guide Facebook

programming, as many brands with global pages are

targeting campaigns, posts, contests, and retail activities

at their traditional Western audiences, often restricting

participation of geographies in which they are generating

significant engagement.

MOST POPULaR CITy By BRaND

City Where Most People are Talking about the Brand

(May 2012)

LOCAL U.S. PAGE“It’s surprising not to see 100% of prestige brands

producing geo-targeted content. This is a massive

opportunity to make sure you’re delivering the right

content to the right person at the right time.” – Michael Lazerow | CEO, Buddy Media





18

Key Findings


Facebook IQINDEX®

Facebook Is a Local BusinessA priority for prestige brands year-over-year has been

localizing Facebook content, and 41 percent now maintain

at least one local country page (in addition to the u.s. or

global page), while 40 percent of brands have experimented

with geotargeted Facebook wall posts. throughout May,

local country pages grew on average 11.5 percent versus

global Facebook page growth of 5.3 percent. these local

pages also boast higher levels of engagement, registering

interaction rates of 0.19%, versus 0.13% for global pages.

beauty brands are at the forefront of the local charge,

pioneered by L’occitane en provence (54 local pages),

Lancôme (45), and clinique (32). France has 20 local

pages, Japan and spain 16. on average, the largest local

prestige communities are in brazil (93,000 fans) and the

uK (85,000) and the most engaged are Japan, taiwan,

and sweden.

Japan

Taiwan

Hong Kong

South Korea

Spain

Brazil

Israel

France

U.S.

United Kingdom

EN

Ga

GE

ME

NT

PaGE SIZE

SIZE VS. ENGaGEMENT By COUNTRy

Local Prestige Facebook Pages

(May 2012)

BRaNDS USING GEO-TaRGETED POSTS

VS. BRaNDS WITH LOCaL PaGES

53%

Geo-TargetedPosts

Local Pages

34%

40%

37%

26%

26%

41%

79%

Beauty & Skincare Fashion Specialty Retail Watches & Jewelry





19

Key Findings


Facebook IQINDEX®

THE FaCEBOOK UNIVERSE

Total “Likes” - all Brand Pages

(May 2012)

Swarovski

2,976,933n=5

Calvin Klein

4,176,722n=1

Chanel

6,690,952n=1

Burberry

12,894,105n=1

Lacoste

10,566,973n=9 Gucci

8,067,757n=3

Christian Dior

8,043,861n=1

Louis Vuitton

7,727,684n=1

Macy’s

5,827,208n=6

Dolce & Gabbana

5,443,856n=4

Ralph Lauren

4,979,783n=1

Sephora

4,358,280n=16

Coach

3,463,050n=3

M·A·C

3,423,157n=1

Tommy Hilfiger

3,352,823n=2

Armani

3,177,441n=1

Lancôme

2,694,998n=45

Clinique

2,688,832n=32

Hugo Boss

2,280,810n=2

United Colors of Benetton

2,263,180n=6

GLOBAL PAGES REGIONAL PAGES






Facebook IQINDEX®

2

24

14

6

25

8

12

9

20

25

1116

15

30

22

13

23

18519

4

10

26

17

28

3135

37

33

29

2732

21

34

1

21,175 0.11 6.5512

Portugal

307,337 0.07 2.4511

Avg. # “Likes” Avg. Interaction Rate

Growth (%)Pages

Avg. # “Likes” Avg. Interaction Rate

Growth (%)Pages

U.S.1

19

2

20

3

21

4

22

5

23

6

24

7

25

8

26

9

27

10

28

11

29

12

30

13

31

14

32

15

33

16

34

17

35

18Brazil93,060 0.05 24.506

15,361 0.08 5.7013

Singapore18,479 0.16 4.17 6

Greece

84,960 0.04 4.7015

UK

18,178 0.07 8.546

Philippines

66,016 0.10 7.55 20

France65,472 0.08 17.02 16

Spain

16,408 0.26 5.236

Israel

41,425 0.12 5.598

Middle East

10,365 0.19 6.715

South Africa

38,067 0.11 10.8211

Germany

9,319 0.29 25.115

Hungary

36,959 0.05 0.595

India

9,088 0.18 5.408

Netherlands

36,574 0.09 8.1912

Malaysia

7,473 0.22 2.248

Russia

30,585 0.08 5.14 14

Italy

6,709 0.11 7.128

Belgium

27,693 0.15 21.4213

Hong Kong27,649 0.15 5.4911

Thailand

6,290 0.57 32.8418

Japan

25,556 0.12 9.818

Australia

5,217 0.32 2.464

Sweden

25,010 0.05 2.077

Canada

4,946 0.15 1.825

Denmark3,516 0.19 8.548

Switzerland

24,277 0.19 9.9914

South Korea

2,469 0.25 30.357

Czech Republic

23,846 0.31 5.0815

Taiwan

1,643 0.14 21.813

Norway

21,263 0.10 8.338

Poland21,622 0.13 23.9811

Turkey

11,786 0.18 29.278

Mexico

* Growth & engagement based on pages with more than 2,000 “likes”

FaCEBOOK aROUND THE WORLD

average “Likes”, Growth, and Engagement Per Country Page*

(May 2012)

KEy FINDINGS





21

Key Findings


Facebook IQINDEX®

F-C

om

mer

ce S

op

his

ticat

ion

F-Commerce/F-Disappointmentthe number of prestige brands selling directly through

Facebook declined year-over-year, mimicking the larger

retail sector. initial forays into F-commerce mimicked the

e-commerce experience, and many brands have shuttered

their Facebook storefronts after struggling to recognize

return on investment. only four brands in the study feature

full F-commerce with end-to-end product selection and

checkout on the platform. L’occitane and philosophy allow

users to shop their entire sKu range. sephora provides

users with the opportunity to send friends gift cards via

the platform, and oscar de la Renta invites its more than

300,000 fans to shop Facebook exclusives including the

bauble book. two additional brands, tory burch and dVF,

provide partial F-commerce capabilities, with checkout

occurring on their e-commerce sites.

While F-commerce has not lived up to the hype, efforts on

the site to incorporate the Facebook graph demonstrate a

strong alternative to traditional Facebook sales. only two

brands in the study, M.A.c and smashbox, allow users to

“shop with their Facebook friends” through their e-commerce

site. consumers can share their favorite products and recent

purchases, see what is “liked” by their Facebook network

and receive birthday gift reminders and suggestions.

F-COMMERCE SOPHISTICaTION

% of Brands Employing the Following Tools on Facebook

(May 2012)

Social Shopping

Full F-Commerce

F-Commerce, No Checkout

Product Links

No F-Commerce

72%

19%

2%

4%

2%

“It’s crucial for prestige brands to think about social

commerce holistically, rather than just F-commerce

as a silo. The right questions to ask are, ‘How are we

making the entire shopping experience social?’ and

‘How do we incentivize people to share their experiences?’ versus just,

‘How can we set up a storefront on Facebook?’” – Michael Lazerow | CEO, Buddy Media





22

Key Findings


Facebook IQINDEX®

63%-64%

55%

53%

51%

43%

-48%

-37%

-37%

-36%

GREaTEST yEaR-OVER-yEaR GaIN OR LOSS

2011 vs. 2012 Facebook IQ Percentile Rank

BulgariChallenged GiftedJewelry icon added 600,000 new fans, registered 30,000 monthly users of its philanthropy app, and has increased fan engagement.

Diane von FurstenbergGifted Challenged

Early F-commerce pioneer maintains a strong page, but IQ suffers from limited year-over-year innovation and growth.

PradaFeeble AverageThe notorious Facebook holdout joined the platform in January 2012; quickly playing catch-up.

ClarinsGifted Average

Fan and brand posting have decreased significantly; Spa Life game isn’t enough to keep brand among Gifted ranks.

Christian DiorChallenged Giftedcatapulted from 900,000 fans to over 8 million. content has gone from lackluster to best-in-class.

NARSGifted Average

300 percent growth has come at the expense of engagement.

CartierChallenged Gifteddeftly integrated “L’odysée de cartier” campaign debuted across social media channels fueling 50 percent Facebook fan growth in 30 days.

PhilosophyAverage Challenged

brand site features Facebook fan favorites but fails to link Facebook page or allow products and content to be shared.

SmashboxAverage Giftedsite-side Facebook shop keeps pace with innovation.

OmegaGifted Average

Limited unique tab programming has allowed others to catch early category leader.





23

Key Findings


Facebook IQINDEX®

2007. digital holdout prada was the latest to launch

an official page in January 2012. However, there is no

relationship between when a brand joined Facebook

and the size of the community it has built.

patek philippe and Rolex have yet to embrace

Facebook, missing the opportunity to communicate

with the thousands of fans who are engaging with

nonofficial pages.

0

1,000

2,000

3,000

6,000

9,000

12,000

15,000

Fend

i

Hermes

Marc Ja

cobs

Cartier Alex

ande

r McQ

ueen

IWC

Christi

an Dior

Botteg

a Ven

eta

Bacca

rat

Le Bon

Marc

he Rive

Gauch

e

Max M

ara

Chopa

rd

Prada

Salvato

re Fe

rraga

mo

Officine

Pane

rai

NET-A

-PORTE

R

Tiffan

y

Benefi

t Cos

metics

NARS Marks &

Spenc

er

Swarovs

ki

Michae

l Kors

United

Colors

of Ben

etton

Hugo B

oss

Jimmy C

hoo

Versa

ce

Bulgari

Clavin

Klein Und

erwea

r

Estée

Laud

er

Yves

Saint L

auren

t

Tommy H

ilfige

r

DKNY

Macy’s

Louis

Vuitto

n

Chane

l

Burberr

y

Saks F

ifth Av

enue

Elizab

eth Arde

n

Audem

ars Pigu

et

DeBee

rs

Harry W

inston

Galerie

s Lafa

yette

Selfrid

ges

Emen

egild

o Zen

ga

David

Yurm

an

Van C

leef &

Arpels

Bobbi

Brown

Blooming

dale’

s

Raymon

d Weil

Omega

Donna

Karan N

ew Yo

rkSK-I

I

El Cor

te Ing

lesPiag

et

House

of Fr

aser

Bally

Valen

tino

Boots

Montbl

anc

Movad

o

Vach

eron C

onsta

ntin

Printe

mps

Clarins

Shiseid

oAv

eda

Baume e

t Merc

ier

Jage

r-LeC

oultre

Harrod

s

Nordstr

om

Sepho

ra

Giorgio

Arman

i

Laco

ste

Lanc

ôme

Coach

Dolce &

Gabba

na

Calvin

Klein

Gucci

M·A·C

Kiehl’s

Diane V

on Fu

rsten

berg

Oscar

de la

Renta

Kate Spa

de

Tory

Burch

L’Occ

itane

Chloe

Barney

s New

York

Bare Es

centu

als

Harvey

Nichols

Philos

ophy

Neiman

Marc

us

Perric

one M

D

Long

inesHub

lot

Bergdo

rf Goo

dman

Pand

ora

TAG Heu

er

Smashb

ox

Cliniqu

e

Origins

Ralph L

auren

Beauty &Skincare

Watches& Jewelry

FashionSpecialty Retail

2007 2008 2009 2010 2011–2012

Fast Follower(s)some of the prestige industry’s early Facebook

adopters are closing in on their five-year anniversaries

on the platform. of the 100 brands in the index,

Pandora was the first to join Facebook, in November

“LIKES” PER Day

average accumulated “Likes” Since Facebook Page Launch

“Lik

es”

Per

Day





24

Key Findings


Facebook IQINDEX®

Slightly More Socialnearly 80 percent of prestige brands maintain a two-way

dialogue with their fans, responding to 20 percent

of fan questions.

More than one third of brands in the index prevent fans

from posting on their Facebook timelines, essentially

inhibiting the “social” component of the network. treating

Facebook as a broadcast channel, these brands are

missing the opportunity for fan-created content and the

establishment of an organic community that foments

when fans interact with one another.

Although fan posts are down 0.05% year over year, the

73 percent of brands that allow fans to initiate interaction

are rewarded with an average of 677 fan uploaded

photos and 63 fan posts per week.

While specialty Retail brands demonstrated the lowest

interaction on brand posts, they lead all categories

in fan-to-fan engagement. however, pandora fans are,

by far, the most active posters.

RESPONSE FREQUENCy By CaTEGORy

average % of Posts to Which Brand Responds

(May 2012)

TOP-10 WEEKLy FaN POSTS

(April 2012)

Andrea This eyeshadow is amazing! Does it come in Purple?

Sarah Which brand would you suggest for wedding attire?

Joseph Does this style come with a 14k gold band?

Daniella Looking forward to seeing the new collection—so chic!

30%

23%

21%

6%

Benefit Cosmetics

Michael Kors

Nordstrom

Bare Escentuals

Marks & Spencer Boots

M∙A∙C Sephora

Macy’s

Pandora

1,04093

98

107120

128 208213 276

297

= Fashion

= Beauty & Skincare

= Watches & Jewelry

= Specialty Retail





25

Key Findings


Facebook IQINDEX®

Less is Morethere is a negative correlation between the number

of brand posts and interaction rate, suggesting that

posting too frequently can reduce engagement.

specialty Retail brands averaged 16 posts per week

and had the lowest engagement, 0.04%. the sweet

spot appears to reside between 4–7 posts a week.

0.06%

0.03%

0.13%

0.08%

0.00%

1–4 4–7 7–10 10+

0.15%

0.12%

0.09%

0.06%

0.03%

POSTS PER WEEK

INT

ER

aC

TIO

N R

aT

E

aVERaGE INTERaCTION By POSTS PER WEEK

(April–May 2012)





26

Key Findings


Facebook IQINDEX®

Timeline’s New FeaturesFacebook timeline offers new posting options that help

brands bring attention to specific content. Highlighted

or “starred” posts, which span the entire timeline,

achieve the highest engagement at 0.12 percent. Across

the study, 27 percent of the brands experimented with

new “pinned” post functionality that allows a brand

to highlight a post at the top of the timeline for seven

days. these posts averaged 0.10 percent interaction,

slightly outpacing the average.

aVERaGE INTERaCTION By POST CaTEGORy

(April–May 2012)

Highlighted Post Pinned Post Regular Post

0.12%

0.10%

0.09%




https://www.facebook.com/Tiffany

https://www.facebook.com/Dior

https://www.facebook.com/Dior


27

Key Findings


Facebook IQINDEX®

E-commerce Strikes BackAn examination of more than 950 posts reveals that

those that contained links to e-commerce web pages

received the highest rates of interaction, closely followed

by celebrity and offline event-inspired content. These three

were also the most shared, suggesting fans are more

selfish with deals and offers.

Like the findings from the 2011 Digital IQ Index®: specialty

Retail, posts that promote contests and discounts received

lower rates of engagement, indicating their inability to

generate consistent interaction or stickiness.

aVERaGE INTERaCTION RaTE By POST CONTENT

(April–May 2012)

MOST SHaRED CONTENT

average Shares per Post

(April–May 2012)

Link toE-Commerce

Celebrity Offline Event Retail Location Contest/Sweeps Product Discount/Offer

0.026%

0.092% 0.089%0.086%

0.061%

0.051% 0.050%

Retail Location

0.010%

Contest/Sweeps

0.009%

Product

0.010%

Celebrity

0.010%

Offline Event

0.013%

Discount/Offer

0.003%

Link toE-commerce

0.015%





28

Key Findings


Facebook IQINDEX®

IntegrationFacebook integration has increased dramatically year

over year. however, brands are missing earned media

opportunities and are leaving customer data on the table.

in the cMo council’s fourth quarter 2011 survey, only

17 percent of marketer respondents reported that they

thought their company had a fully integrated social media

strategy, while an additional 34 percent said social

media was supportive of communications “but not fully

integrated.”1

Although 83 percent of brands maintain a link to their

Facebook page on their website, 31% percent of brands

do not offer shareable content, and 45 percent have yet

to incorporate the “Like” button on product and content

pages. surprisingly, 97 percent of prestige brands

are not utilizing the Facebook connect Api, a missed

opportunity to capture valuable customer data with a

single click.

EXTERNaL INTEGRaTION

% of Brands Employing the Following

(2011 vs. 2012)

1. “Social Media in the Marketing Mix,” eMarketer, 2012.

Site Content Sharableon Facebook

46%69%

Search Engine Visibility

24%63%

Site Facebook Link

63%83%

Site Content “Like” API

35%55%

Facebook Connect API

0%3%

2011 2012

“An advanced Facebook strategy is not just about

Facebook.com, but instead about how brands can

bring the power of the social graph to all of their online

outposts. With the ability to track conversions and

sales from social sharing across their web properties, prestige brands

that do not fully integrate Facebook are literally leaving

money on the table.” – Michael Lazerow | CEO, Buddy Media






Facebook IQINDEX®

FLaSH OF GENIUS

Live stream of Facebook activity and ability to “like” the Macy’s page directly from the blog, while users share comments and blog posts with their Facebook communities

Live coverage of launch parties and video campaigns are accessible via the Live@

Macys tab. The interactive feature houses check-in

capabilities and conversation streams of viewers

Find us. Like us.







Facebook IQINDEX®

FLaSH OF GENIUS

engagement

“We like you, too.” Thank-you video to Macy’s 5 million+ fans encourages them to keep the conversation alive with the message: “Our page is your page.”

Macy’s uses crowdsourcing for

ideas and allows fans to be part of

the decision-making process in contests

and campaigns

Cross-platform integration of Twitter and Pinterest positions Macy’s Facebook page as the brand’s prime social destination

social Mediaintegrated into Facebook







Facebook IQINDEX®

5%

36%

27%25%24%

22%21%20%

18%

13%12%12%11%10%9%8%

FLaSH OF GENIUSThe Pretty Powerful campaign was rolled out in 16 countries, and the app was translated to reach local fans

Global Citizenin February 2012, bobbi brown invited nearly 200,000

Facebook fans across the globe to become the next face

of bobbi’s “pretty powerful” campaign. the brand rolled

out its contest to 16 of its 28 local pages by introducing

like-gated applications in each country’s native language.

Fans were encouraged to submit before-and-after beauty

photos and personal secrets for self-confidence for the

chance to win a trip to New York to meet Bobbi. The

entrant receiving the most votes on each local page

proceeded to the international round. During the final stage

of voting, every face represented a country, highlighting

the local flavor of the cross-market campaign.

Local pages participating in the contest grew by an

average of 31 percent during the last three weeks of the

submission period, significantly exceeding the 9 percent

growth clocked by bobbi brown pages that did not

participate.

0%

Turke

yFra

nce

Middle

East

Hunga

ry

Russia

Spain

Israe

l

German

y

Polan

d

Switzerla

nd

Netherl

ands

Belgium

(Dutc

h)

South

Africa

Austria

Belgium

(Fren

ch)

Denmark

10%

20%

30%

40%

0%

40%

20%

60%

80%

100%

Pa

GE

GR

OW

TH

aP

P P

EN

ET

Ra

TIO

N

BOBBI BROWN PRET Ty POWERFUL

aPP PENETRaTION aND PaGE GROWTH

(April–May 2012)






Facebook IQINDEX®

Scale + Databurberry continues its reign as luxury’s Facebook leader

in terms of size and scale. the digital darling has grown its

community 107 percent since May 2011, adding 6.6 million

fans. Much of this growth has come on the back of massive

programming, including an August 2011 fragrance sampling

campaign that broke all records. burberry distributed

245,0002 burberry body samples to its Facebook fans in the

first week of the global campaign, attracting 352,248 new

Facebook fans in the first five days.

however, the brand stands out for more than strength and

size. burberry is one of only three brands in the index that

employ Facebook connect functionality on their sites,

allowing the brand to collect valuable cRM data during

account sign-up and allowing users to populate their data

with one click. demonstrating the power of an iterative

digital strategy, Burberry first experimented with Facebook

connect in october 2011, taking down the plug-in after two

weeks. As of May the plug-in appears to be here to stay.

burberry’s Facebook investments seems to be paying

dividends. in september 2011, comscore reported 29

percent of traffic to the Burberry site came from Facebook.

FLaSH OF GENIUSThe brand collects valuable customer

data by allowing users to connect to their

e-commerce accounts with the Facebook

Connect open graph

Last august’s campaign distributed more than 245,000 product samples within one week and 352,248 new fans were added in five days

2. http://www.vogue.co.uk/

news/2011/08/31/rosie-

huntington-whiteley-burberry-

behind-the-scenes





http://www.vogue.co.uk/news/2011/08/31/rosie-huntington-whiteley-burberry-behind-the-scenes






Facebook IQINDEX®

FLaSH OF GENIUS

Mother’s DayWith 54 distinct country-dedicated Facebook pages,

L’occitane is faced with the challenge of tailoring its

content for a wide variety of languages and cultures. A

salient example is Mother’s day, celebrated internationally

but at varying times throughout the year. L’occitane’s

Facebook pages span countries that honor mothers on 15

different calendar days, from February to december.

L’occitane’s local pages offer Mother’s day discounts,

samples, and prizes through targeted interactive features,

from user-submitted photo competitions in the u.K. and

hong Kong, to a story competition in the Middle east,

and a question-and-answer challenge in turkey, which

added 1,310 new fans to the existing base of 7,370 in just

one day. particularly successful was the Mother’s day

Love test, a like-gated app offered on 12 local pages and

reaching 120,000 active users in the month of May. those

who “test your love for your mother” are rewarded: a free

gift for the test-taker as well as opportunities to pamper

mom through discounts or sweepstakes. At its conclusion,

the test-taker is prompted to invite Facebook friends

to participate.

L’Occitane shares knowledge across its

organization and tailors content to its global

community in more than 50 countriesL’Occitane France added

5,024 new fans on the day the campaign launched on its page

L’Occitane Portugal’s Mother’s Day Facebook tab




http://www.facebook.com/loccitane.usa

http://www.facebook.com/Loccitaneportugal?sk=app_100374176761433&redirected=true

http://www.facebook.com/loccitane.fr


34

DispersionAlmost half the brands in the Index register as “Feeble”—

demonstrating widespread underinvestment in mobile by

a considerable portion of the prestige sector. The disparity

between the Index leader (164 IQ points) and the Index

laggard (8 IQ points) suggests that this “mobile gap” is

more the result of nonparticipation than subpar perfor-

mance. With a median score of only 76, the majority of

brands are just beginning to make mobile investments,

while a select few early investors are pulling away from the

pack.


Facebook IQINDEX®

FLaSH OF GENIUS

Coach Japan Facebook Wall

Konnichiwain February 2012, Facebook’s Japanese user base surpassed

that of domestic social media rival Mixi. Acknowledging this

powerful opportunity, 18 percent of prestige brands have

created country-specific Facebook pages for the world’s

third-largest luxury market. For half of these brands, Japan is

the only country for which they maintain a local account.

With more than 30,000 “likes,” the coach Japan page tops

the list. coach Japan’s unique content and programming

indicate a greater level of investment than a basic translation

of posts on the global page. A recent Japan-specific Mother’s

day contest added nearly 7,000 new fans to the page, which

grew by 27 percent during the three-week campaign. coach

Japan’s strong community produces an interaction rate

nearly six times higher than that of the coach global account,

mirroring the general trend in which Japan-focused pages

produced the highest growth and engagement rates across

all countries.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,00031,475

16,805 16,38714,900

11,297

7,504

3,720 3,2421,334 1,298

Coach Lancôme Clinique Estée Lauder Tommy Hilfiger

Kate Spade Bobbi Brown Origins BarneysNew York

AlexanderMcQueen

TOP-10 JaPaN DEDICaTED FaCEBOOK PaGES

Total “Likes”

(May 2012)

27% increase in Coach’s fan base over 3-week Mother’s Day campaign

Coach Japan Custom Tab: Best-Seller Ranking




http://www.facebook.com/CoachJapan/app_221941484529863

https://www.facebook.com/CoachJapan


35

DispersionAlmost half the brands in the Index register as “Feeble”—

demonstrating widespread underinvestment in mobile by

a considerable portion of the prestige sector. The disparity

between the Index leader (164 IQ points) and the Index

laggard (8 IQ points) suggests that this “mobile gap” is

more the result of nonparticipation than subpar perfor-

mance. With a median score of only 76, the majority of

brands are just beginning to make mobile investments,

while a select few early investors are pulling away from the

pack.


Facebook IQINDEX®

FLaSH OF GENIUS

“M.a.C by Request” allows fans to choose which of their favorite

products they would like reissued

Bobbi Brown fans voted to create a limited edition “Brings Back” Facebook lipstick collection

Users can purchase winning shades via a Facebook link

Bring it Backbobbi brown and M.A.c cosmetics, both of the estée

Lauder group, are leveraging their Facebook communities

to reinstate fan-favorite products. by asking brand

enthusiasts to vote on their must-bring-back cosmetics,

these brands capitalize on the opportunity to directly

interact with their fans in a way that retailers, with no

control over sKus, cannot.

bobbi brown herself encourages fans to vote on ten

different shades of lipstick on the “bobbi brings back”

app. users can select different colors and share their

choices in hopes of creating a limited edition “brings

back” collection that can only be purchased online via a

link from Facebook. the program has been so successful

that there are plans to hold another brings back campaign

for eye shadow in February 2013.3 the interaction rate of

the 13 brand posts about the campaign was more than 80

percent higher than the average rate for beauty brands.

M.A.c cosmetics’ “M.A.c by Request” has also generated

Facebook buzz with more than 636,000 votes cast on

potential reissue products.4 Winning shades of lipstick, lip

gloss, and eye shadow will be available in August 2012

only from the brand’s website.

3. “Social Media Breathes Life Into Shelved Products,” Tatiana Boncompagni, The New York Times, May, 2012.

4. Ibid.




http://apps.facebook.com/bobbibringsback/

https://www.facebook.com/BobbiBrown?sk=app_246079012131626

https://apps.facebook.com/macbyrequest/?ref=ts



Facebook IQINDEX®

FLaSH OF GENIUS

Facebook OffersGroupon’s recently reported $1.35 billion in gross billings5

must have captured Facebook’s attention because it

recently introduced a new advertising product, Facebook

offers, allowing brands to circulate coupons that are

redeemable both online and offline. After claiming the

offer, the activity shows up on the user’s newsfeed,

enabling fans to share the offer with their friends.

Macy’s, the first in the Index to experiment with the new

product, debuted its Facebook offer in late February with

a 25 percent discount on purchases over $100. during a

two-day period6 41,597 offers were claimed, resulting in an

extremely high interaction rate of 0.90 percent, which is 44

times higher than the brand’s average rate and double that

of the leader in the prestige 100.

Kate spade has also pioneered a Facebook offer, with

a 40 percent discount on all handbags and wallets in its

New York outlet shops. Despite a fan base of only 520,000,

more than 247,000 offers were claimed and the Facebook

page metric “people talking About this” increased more

than tenfold after the offer was released.

Although 29 percent of brands the in the index have

experimented with various forms of Facebook advertising,

only Macy’s and Kate spade have leveraged this

new product.

5. “Sharp revenue increase

for Groupon gives stock

a boost,” Wailing Wong,

Chicago Tribune, May 15,

2012

6. “Facebook Now Testing

Offer ‘Coupons’ for

Ecommerce Sites, Too!,”

Corey Eridon, hubspot.com,

May 9, 2012

Macy’s Offer was claimed by more than 41,000 Facebook users

Users can like, comment, and share the Offer with

their friends

More than 247,000 Facebook users claimed the Kate Spade Offer

The Offer is sent by email to user






Facebook IQINDEX®

FLaSH OF GENIUS

37

Miracle MakerWith the highest fan engagement score in the index, sK-

ii’s efforts to cultivate tight-knit communities in Asia have

reaped rewards.

Just in time for the holiday season, the brand launched its

like-gated “Miracle Maker” app on its Malaysia page. Fans

posted and shared their “Wishes” with others in a voting

contest to win products and cash. the response to the

app was overwhelmingly positive, and the brand continued

to generate buzz by promoting the contest on its wall,

eventually capturing more than 1,000 wishes. Furthermore,

the brand saw a 68.8 percent increase in total page “likes”,

adding 29,263 new fans in the two-month period during the

app’s release.

Users can submit “wishes” and browse the gallery of submissions Brand highlights popular

compliments in a Facebook post with a link to the app

FaCEBOOK “LIKES” PER Day

(November 1, 2011–January 31, 2012)

0

1,400

1,200

1,000

800

600

400

200

NOVEMBER 2011 DECEMBER 2011 JANUARY 2012

“Miracle Maker” app launched

added 1,423 new fans

68.8% growth

26,293 new fans

79,561Current Total




https://www.facebook.com/skii.malaysia/app_165587473562650

https://www.facebook.com/skii.malaysia/posts/291028554251748

https://www.facebook.com/skii.malaysia/posts/291028554251748

https://www.facebook.com/skii.malaysia/app_165587473562650



Facebook IQINDEX®

38

0

1000

2000

3000

8000

7000

6000

5000

4000

FEBRUARY 2012JANUARY 2012

FLaSH OF GENIUS

Pilot aptitude TestOnline social games have proven to be a significant

engagement opportunity. the top-ten Facebook

developers’ gaming apps reach more than 660 million

monthly active users.7 iWc taps into the social gaming

phenomena with its Facebook app “pilot Aptitude test.”

Launched in conjunction with its “Big Pilot” watch

collection, the app allows users to think and act like a pilot

by playing a memory and spatial reasoning game. users

can share scores with friends, as well as view top scores

on an updated leaderboard.

the app garnered a 19.5 percent “like” increase and the

addition of 45,861 new fans in the ten-day period following

the game’s release, a rate ten times the average for the

Watches & Jewelry category.

The “Pilot aptitude Test” gaming app was launched in conjunction with IWC’s

“Big Pilot” watch collection

FaCEBOOK “LIKES” PER Day

(January 1, 2012–March 31, 2012)

Fa

CE

BO

OK

“L

IKE

S”

5,166 new fans added

7,130 new fans added “Pilot Aptitude Test” app launched

7. “AppData,” appdata.com, May 2012






Facebook IQINDEX®

SCOTT GaLLOWay Clinical Professor of Marketing, NYU Stern, Founder, L2

Scott is a Clinical Professor at the NYU Stern School of Business,

where he teaches brand strategy and digital marketing, and is the founder of L2, a think tank for digital innovation. scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in u.s. consumer and me-dia companies. in 1997, he founded Red envelope, an internet-based branded consumer gift retailer. in 1992, scott founded prophet, a brand strategy consultancy that employs more than 250 professionals in the united states, europe, and Asia. scott was elected to the World economic Forum’s Global Leaders of tomorrow, which recognizes 100 individuals under the age of 40 “whose accomplishments have had impact on a global level.”

scott has served on the boards of directors of eddie bauer (nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Com-puter, and uc berkeley’s haas school of business. he received a b.A. from ucLA and an M.b.A. from uc berkeley.

MaUREEN MULLEN Director of Research & Advisory, L2

Maureen leads L2’s research and advisory practice, where she helped develop the Digital IQ Index®. she has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed-care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and hcA. Maureen has a b.A. in human biology from stanford University and an M.B.A. from NYU Stern.

DaNIELLa CaPLaN L2

daniella started her career as a marketing communications manager for a global defense contractor where she directed the company’s creative programs and the rebranding of newly acquired divisions. she was later hired to lead public relations for the israeli consulate in boston and guided the local implementation of the country’s nation-branding efforts while spearheading the consulate’s social media integration. daniella received a b.A. in politics with international studies from Warwick university (uK) and an M.s. in Integrated Marketing from NYU.

MICHaEL LaZEROW CEO, buddy Media

Michael is a serial entrepreneur who has co-founded four successful internet-based media companies. he has a passion for creating, managing and growing companies from the ground up. Michael is currently chairman and ceo of buddy Media, Inc., a New York-based company whose social enterprise software is used by eight out of the top ten global advertisers.

Michael is widely recognized as a thought leader on digital media and marketing trends and is a contributing writer to Advertising Age, AllThingsD, MediaPost, Business Insider, and Fortune, among other publications. he regularly speaks at conferences including the Monaco Media Forum, the consumer electronics show, south by southwest interactive (sXsWi), bloomberg empowered entre-preneur summit, Mashable connect, Mediapost oMMA Global, Web 2.0 expo, and iMedia brand summit.

Michael and his companies have won numerous industry awards and accolades. In June 2011, Michael was named the New York region Ernst and Young Entrepreneur of the Year. Buddy Media was named to Advertising Age’s 2011 “digital A-list”, Ad Week’s 2010 “Insurgent of the Year” and won the “Best Enterprise” ap-plication honor at the 2011 techcrunch crunchie Awards.

R. DaNIELLE BaILEy L2

danielle began her career at the home depot, inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. she went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York times company, nbcuniversal, disney/Abc, Maxim magazine, and Zagat. At L2 she has benchmarked the digital competence of brands spanning the specialty retail, public sector, pharma, wine and spirits, travel, and financial services industries. Danielle has a b.s. in systems engineering from the university of Virginia and an M.B.A. from NYU Stern.

MaCKENZIE LEE L2

Mackenzie began his career as an investment analyst with Bivium Capital, an investment management firm that provides emerging manager-of-managers solutions to sophisticated in-stitutional investors. At bivium, Mackenzie led dedicated money manager searches and performed intensive due diligence on a multitude of investment managers in a range of asset classes. Mackenzie received a b.A. in public policy and an M.s. in Management science and engineering from stanford university.

JESSICa BRaGa L2

Jessica is an art director, specializing in identity, iconography, event graphics, and invitations. she began her career in fashion, designing textiles and prints at elie tahari’s studio, and then focused on the brand aesthetic across its many developing disciplines. desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a b.F.A. in Graphic design, and an A.A.s. in illustration from Rochester institute of technology.

aaRON BUNGE L2

Aaron is a graphic designer who specializes in print design, branding and identity, packaging, and web design. his approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets across multiple design disciplines and in multiple languages. Aaron has a b.F.A. in Graphic design from iowa state university.

STaSHa ROSEN L2

stasha has experience developing a variety of marketing initiatives, including those in the public programs department at the American Museum of natural history. she recently received a B.A. in Molecular, Cellular, and Developmental Biology from Yale university. While an undergraduate, she performed research on bacterial RnA degradation and completed her senior thesis on imaging technologies in microbiology.

JING yaNG L2

Jing, a statistics major, has experience in data analysis and extensive quantitative research. her approach in advanced statistical techniques is ranging from Multivariate Analysis to Bayesian Network Analysis, applied to several fields including marketing research. Jing received a b.s. in statistics from central south university (china), and an M.A. from columbia university.

TEaM





L2 is a think tank for digital innovation.

We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.

RESEaRCH

Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score

brands against peers on more than 350 quantitative and qualitative data points, diagnosing their

digital strengths and weaknesses.

EVENTS

Forums: big-picture thinking and game-changing innovations meet education and entertainment.

the largest gatherings of prestige executives in north America.

300+ attendees

Clinics: executive education in a classroom setting with a balance of theory, tactics,

and case studies.

120 –180 attendees

Working Lunches: Members-only lunches led by digital thought leaders and academics.

topic immersion in a relaxed environment that encourages open discussion.

40–80 attendees

CONSULTING

advisory Services: L2 works with brands to garner greater return on investment in digital initiatives.

Advisory work includes digital Roadmaps, social Media strategy, and site optimization engagements.

MEMBERSHIP

For membership info and inquiries: [email protected]

UPCOMING RESEaRCH

DIGITaL IQ INDEX® Reports:

Fragrance

Magazines

Specialty Retail

UPCOMING MEMBER BENEFITS

L2 Collective:

The L2 Collective is an initiative in response to members’ desire

to have more insight into the digital approach of peer brands.

PRESTIGE 100® Reports:

China IQ

Mobile IQ

UPCOMING EVENTS

L2 Clinic Facebook, In-Depth

06.14.12 New york City

L2 Lunch Fragrance


L2 Lunch L2 Collective Release


L2 Lunch Fragrance

06.29.12 Paris

L2 Lunch Gamification


mailto:membership%40L2ThinkTank.com?subject=

a THINK TaNK for DIGITaL INNOVaTION

51 east 12th street, 2nd Floor New York, NY 10003 L2ThinkTank.com [email protected]


this report is the property of L2 think tank. As always, L2 Members may use this report for internal business purposes. beyond the L2 Membership, no copyrighted materials by L2 think tank may be reproduced, re-distributed or transferred without prior consent by L2.

http://www.l2thinktank.com



L2 Facebook IQ 2012

Documents

Transcript of L2 Facebook IQ 2012