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Home » Engagement, Industry Case Studies & Presentations, News, Social Commerce, Social Commerce Spotlight, social media advertising, social media marketing, Social Media News

Social commerce spotlight: comScore’s new research proves of the power of ‘like’

Submitted by on June 15, 2012 – 8:25 am4 Comments

Brands are frequently condemned for harvesting Facebook likes.  “Like us if…”, “like us for…” and “like us to win…” are sentences constantly thrown into the social media sphere, and indeed, often by brands that have little understanding of their relationship with fans, or the true importance of the much sought-after click on the thumbs-up icon.

However, ground-breaking new research from digital analytics wizards comScore, in collaboration with Facebook, now actually proves that more fans mean more money for companies and organisations. The report, ‘The Power of Like 2’ (the follow-up to last year’s ‘The Power of Like’) shows that being a fan of a brand will cause users to purchase more from that store and online. The report cites Target and Starbucks as shining examples: in the four weeks after seeing Target messages on Facebook, Target fans bought 21% more frequently at the store. In the four weeks after seeing Starbucks messages on Facebook, fans bought 38% more frequently. Indeed, being a fan means users are more likely to spend more money with the brand, too: Best Buy fans spend 131% more in store and online than the average internet user.

Furthermore, Facebook ads – reviled as they may be by Facebook users – are shown in the report to prove a genuinely effective marketing tool: in the four weeks after seeing a Facebook ad by a major offline US-based retailer, fans bought 16% more frequently from its stores and 56% more frequently from its online stores.

However, not all brands are enjoying success stories like these. Touching on the idea of the afore-mentioned fan harvesting, comScore’s VP of Industry Analysis Andrew Lipsman notes on the company blog: “For too long, brands’ focus on fan acquisition as a primary indicator of success has ignored the ways in which social marketing actually works to achieve marketing objectives like reach, brand resonance, and ultimately sales.” As such, the report delves deeply into to the core elements of social marketing, providing invaluable guidance as well as impressive case studies.

“While marketers understand the importance of a channel that now accounts for 1 in every 7 minutes spent online, many are challenged to quantify its effectiveness,” says Lipsman. “The Power of Like research sheds new light on how brands are able to deliver earned and paid media at scale, amplify its effects from Fans to Friends of Fans, and understand how exposure to these media can drive the desired consumer behaviors, including online and in-store purchase.”

Download the report here.

 

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4 Comments »

  • This really doesn’t surprise me, when people ‘like’ a brand/product they are constantly reminded on their news feeds of the brand which will encourage them to buy again. I think many companies aren’t as successful because they do not personalise their content towards their particular audience, it must be relevant and engaging.

  • Mr. Brant says:

    The Power of a Like for me is all to do with how those Likes have been acquired. For example, brands like Starbuck’s are iconic brands that are more likely to have “disciple” fans than say an insurance company. As a consequence they will probably have to do less competitions and Fb adverts to increase their base. Brands that do chase likes will most probably end up with consumers chasing competitions.

    Additionally, your Fanbase should only really be overlaid against the size of your target market in a given country. E.g. if a beer brand is targetting 18-24 ABC’s Males in Ireland that drink beer every month of which there are only 250,000 people in the market, something is wrong if their Fb Fanbase is only 2,000. Equally something is wrong if it’s 500,000.

  • [...] do “Friends” and “Likes” translate into dollar$? Well, there is plenty of recent data out there supporting the idea that business-to-consumer industries are not wasting their time [...]

  • Ken Clayton says:

    The difficulty with these sorts of reports is that they are incomplete. For example, in providing the figures for Starbucks the report makes reference to the existence of a control group against which the fan group was measured but there is no explanation of how the control group compared to the fan group in crucial areas. One of the most important is in prior spending behaviour. Did members of the control group spend the same amount in Starbucks over a significant period of time prior to the research period as the members of the fan group? If they didn’t then the two groups are not comparable.

    Sadly there is too much reporting on these sorts of lines without a proper explanation. It tends to make some of us wonder how reliable the figures are.

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