Brands Imc Project Facebook
Brands Imc Project Facebook
Brands Imc Project Facebook
For
FACEBOOK
Sayaka Brand
W14146916
Table of Contents
Executive Summary.......................................................................................................6
1. Introduction................................................................................................................ 8
1.1. Macroanalysis....................................................................................................10
1.1.1. Industry Overview.........................................................................................10
6. Conclusion................................................................................................................70
7. References................................................................................................................ 72
Executive Summary
The aim of this report was to, based on an extensive macro and micro analysis, come up
with an integrated marketing communications campaign for Facebook. Having existed
for a decade and currently catering to 1.23 billion users, Facebook has risen to be one of
the most admired global technology companies. Despite CEO Mark Zuckerbergs
primary motivation being to make an impact on the world by making it more open and
connected, he had decided to take his company public in 2012. Since then, it was one of
the core concerns for Facebook to postulate a lucrative investment opportunity. Initially
failing to find a successful monetization strategy, investor confidence decreased and as
a result, share prices plummeted. However, in the last quarter of 2013, Facebook finally
found its mobile strategy to bear fruit- increasing income from mobile from 30% to almost
60% of the total revenue. Even though these remarkable numbers sound promising, it
drew attention away from the actual problem: the decrease in engagement. Engagement
is crucial for Facebook to be able to continue providing highly targetable advertising
space.
The macro economical analysis has demonstrated that Facebook is still the
largest social network, but struggles with the loss of young users. Its main users are
Millennials, aged 24-35, known for their love for self-expression on social media
platforms. Moreover, the social media industry is facing threats from savvy consumers,
whose increasing concerns about data privacy damage the sector.
The microanalysis has shed light on an opportunity, which particularly would
resonate with its current main millennial users. The advertising revenue from the travel
sector is not even in the top 5 revenue sectors for Facebook- even though 52% of
people have booked vacations because they were inspired through Facebook pictures of
their friends. 95% even indicated that they had used Facebook for travel-related
activities prior to booking a holiday. There is no generation that has travelled more than
generation Y- hence, it was decided to build the campaign around travel as a core. This
will allow to achieve the objective of increasing travel sector advertising revenue to 20%
as well as increase engagement on the user side.
Even though Facebook is the most advanced and integrated platform out there, it
has lost its cool and has started to morph into a different product, mainly for young
people to keep in touch with their older relatives. Even though the campaign does not
propose to regain youth market share, as those are already covered by corporate
Facebooks acquisitons of younger-oriented media such as instagram and whatsapp, the
brand essence has lost its novelty.
What would happen, if we could use 100% of our brain capacity? Much like that
question, Facebook has enormous amounts of data stored in the cloud, which is left
unaccessed. Therefore, the new brand essence proposes to use the verb explore,
making the new essence Open. Explore. Connect. The core of the IMC campaign is a
contest, where people can submit a 1-minute video of themselves expressing how
adventurous and exploratory they are. The video with the most likes will be the winner,
getting a prize of a 3-month world travel, blogging for Facebook. The trip will be
completely unplanned and will let Facebooks audience decide where his or her next
destination should be.
The contest will initially be advertised through outdoors and press adverts as well
as a YouTube video. After the winner is determined and the blogging starts, the print and
outdoors media will shift towards more functional advertising, to make people aware to
maximize their social media potential. Towards the end of the campaign year, Facebook
will also have its own stand at the world travel market and host seminars, to really
convince the industry players that a significant share of their ad spend should go towards
social media, particularly Facebook.
A budget of approximately GBP 3mio will be used, resulting in an ROI of 1.65.
The budget section will explain further why that number is not a definite one, as the
advertising cost was solely calculated for the UK, but the contest will have a global
impact.
Conclusively, it can be said that Facebook needs to now incentivize customer
engagement to extend and monetize their maturity stage to the maximum.
1. Introduction
The Internet, more specifically Web 2.0, has dramatically impacted the era we currently
live in. The most predominant web-based development of the last decades was marked
by the emergence of social media. Not only has social media not been a short-lived
trend, but also has proven to be a powerful force that shaped societal behavior
completely. The connected world enables information to travel across borders with
hardly any obstacles. (Couldry 2012).
What used to be a primary motive of creating your identity online (Kabani, 2013). Has
reached into new levels, as not only individuals, but also organizations depend on it
(Dijk, J. 2012). The injection of social software platforms into companies, also referred to
as Enterprise 2.0, helps employees, customers and suppliers to share and organization
through Web 2.0 technologies (McAfee, 2006).
The industry it had its strongest effect on was the marketing industry. The emergence of
social platforms have challenged traditional media tools profusely and forced the
industry to gain earned media and improve their transparency (Kirby and Marsden
2006) What used to be corporations preaching to helpless consumers on a one-way
street has transformed to a two-way feedback culture, allowing firms to gain extremely
valuable consumer insight (Kabani 2013; Zarella 2010).
The market player who has been the frontrunner for a considerable time is Facebook.
However, after a decade since its inception, the market leader has reached a turning
point. Despite being the worlds 3rd largest country, Facebook has started to experience a
decline in western countries due to saturation of the market (Williams, 2012).
In 2013, Facebook was the biggest riser in the Interbrands best global brands report
(Interbrand 2014; Figure 1). After a tumultuous year and decrease in investor confidence
following their IPO in 2012, they have finally managed to turn their performance around
in the last quarter of 2013. The successful implementation of an improved mobile
strategy has allowed for the latter to account for 59%, as opposed to 30% last year, of its
advertising revenue (Oreskovic 2014). Hence, Facebook has thrived at intelligently
exploiting big data to provide a meaningful and profitable strategy for its advertisers.
However, these remarkable financial figures drew attention away from the main
underlying issue; the decrease in user engagement. Facebook will only be able to
provide value to its customers as long as its product, namely the users, actively build
their online identity by communicating their preferences, sharing content and the like
(Interbrand, 2014).
1.1. Macroanalysis
1.1.1. Industry Overview
The social media industry drives revenue from selling highly targetable advertising space
to buyers. The low barriers to entry allow small but innovative companies to gain foot in
the market, such as Pinterest. Facebook triumphantly holds the largest share of 54%,
followed by Twitter and LinkedIn (Figure 2).
Linkedin; 11%
Facebook; 54%
Facebook
Twitter
Linkedin
Myspace
Flickr
Pinterest
Tumblr
Google Plus
Twitter; 15%
Description
Privacy of Users and
User
Generated
Content
Competition
Commission
might
hinder
planned
acquisitions
Implication O/T
People more reluctant to use
social media, or switch to
media which only share with
a close circle of family/friends
such as Snapchat
The
government
might
intervene and tighten privacy
regulations, or hinder a
merger from happening to
protect user data
Importance
**
Economical
Developing
markets
and
increased
connection to the
internet
provide
opportunities
Economic
Downturn
draws
to
Social
Media advertising for
reduced cost
**
Social
Preference of Mobile
Usage
of
Social
Media
Younger
Generation
less
likely
to
participate in over
sharing
Marketing
Savvy
Consumers
Millennials still eager to
use social platforms
***
Technologic
al
Environment
al
**
Ad blocking technology
Increased
Energy
consumption due to
technological
requirements
CSR
Porters framework was established in 1979 to emphasize the fact that industry
competition does not only occur amongst direct rivals. Continuous striving for higher
profits goes past the direct industry rivalry as it includes four additional forces (Porter
2008). More specific information regarding competitors is available in Appendix 1.
Rivalry amongst competitors High
The constant underlying necessity to innovate in order to stay competitive stipulates a
high intensity amongst rivals in the marketplace. Even though market players strive to
attract the highest number of users to be able to increase profitability by offering
targetable and valuable advertising opportunities, it has to be kept in mind that each of
the predominant incumbents have their own distinct features. As a consequence, users
sign up for several social networks simultaneously and use each one for its specific
purpose- be it a distinct feature, such as Graph Search for Facebook, WeChat to stay in
touch with friends from Asia, or LinkedIn to enhance ones professional network.
Therefore, Facebook is not necessarily losing users because it failed to keep up with the
competition, but because it has reached its saturation point for some, also known as
platform fatigue (Waddell 2013). Another indication of a strong rivalry is the if you
cant beat them- buy them strategy that Facebook has adapted with its recent
acquisitions of Instagram for USD 1bn and Whatsapp for USD 19bn (Borges 2014; Raice
and Ante, 2014).
Threat of Substitution Low
Directly feeding into the aforementioned argument, the threat of substitution is low.
Within the industry, users rarely convert to a medium to use exclusively, but use various
products to satisfy diverse needs. With a perspective for outside the industry, there is no
product that could substitute the characteristics social media provides to its users. The
only alternative would be to discontinue with the use of social media platforms and turn
to more traditional ways of exchanging and sharing information, such as e-mail.
Threat of New Entrants Medium
To ensure steady profitability, it is a matter of great interest for incumbents to keep out
potential entrants (Porter, 2008). Market players therefore attempt to augment the
barriers to entry by reducing the incentives to enter the market. Habitually, what forms a
great obstacle for new entrants is the high initial capital investment required to become
established. However, in the online-based environment, costs are a fraction of e.g.
physical storefronts and allow startups to gain foot in the market with ease. Especially in
the social media industry, it is possible to achieve explosive rates of growth after entry,
as demonstrated by incumbents such as Snapchat and Pinterest.
Nevertheless, to compete in the league of giant players such as Facebook and Google,
a vast amount of capital is needed to build competitive infrastructure.
Last but certainly not least is the necessity of highly skilled technological intelligence,
which postulates a strong barrier to entry. Given the easy entry due to low cost but high
barriers to effectively compete with know-how and infrastructure, the force can be
evaluated as medium.
Bargaining Power of Suppliers Medium
In the case of this industry, it is quite a unique phenomenon that the user is the supplier.
This is due to the fact that users provide the product, to which businesses advertise.
Even though advertising through Social Media is tremendously targetable and allows for
specific fine-tuning, the predominance of ad-blocking technology and the shift to
marketing savvy and informed consumers make impair advertising effectiveness (Kirby
and Marsden, 2006). As aforementioned, users tend to simultaneously engage with
several media with different purposes. It has to also be considered that the primary
function of social media is to connect with an audience relevant to the user. If the
medium is promising, but has no relevant audience to the user, the incentive to
communicate through the latter is significantly compromised. Hence, given the
combination of low switching cost, low threat of alternatives but tech-savvy users, the
bargaining power of suppliers can be evaluated as medium.
Bargaining Power of Buyers- Low
Marketing campaigns nowadays very often adapt an integrated approach to allow one
mediums weakness to be counterbalanced by anothers strength (Kitchen et al 2004).
Therefore, the buyer, in this case the businesses buying advertising space and
information about the users on social media, have an interest to simultaneously use as
many channels as possible to reinforce their message to the consumer from different
angles. Hence, using a competitors space does not signify particular loyalty. Moreover,
since Facebook has managed to leverage a profitable mobile strategy, the revenues
have almost tripled (72%) to USD 2.5billion in the first financial quarter of 2014,
exceeding all analysts expectations (Taylor 2014; Alberglotti 1/2014). This illustrates that
buyers are heavily reliant on social media advertising and have therefore low bargaining
power.
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1.2. Microanalysis
1.2.1. Facts and Figures
Facebook is a social networking site, which was created Mark Zuckerberg in 2004 in his
college dorm room. What intended to be a social networking site exclusively for Harvard
students was made available nationwide, then globally, and is one of the most visited
websites today (Carlson, 2010). Facebooks mission is to make the world more open and
connected (Facebook 2014) The company celebrated its 10th birthday in February 2014.
The future of Facebook as the central social network in consumers lives will be dictated
not only by who is on it now, but also who will adopt it in the future. Facebook use has
been a habit for the over-25s for the past 10 years, its almost beyond a choice, more of
a reflex. (Ollerton 2014) The company now registers 1.23billion monthly users, of which
1billion access the site also via mobile (Sedghi 2014; Figure 3).
In the UK, Facebook has 33million users, of which 24million log onto the page daily and
portrays the companys sixth-biggest market (Halliday 2013).
11
evident that particularly Generation Y, or Millennials, are making up the largest share of
users. They are known to be particularly active on social media, seeking validation from
peers through sharing content (Lee 2013).
% 20
15
36
30
10
5
13
11
0
0-17
65+
5089
5000
Revenue
Net income
Profit Margin
3711
4000
3000
2000
1000
1458
219
15%
1974
1500
19%
1000
531%
27%
777
606
229
31%
29%
0
2014 Q1
2013
2012
2011
2010
2009
Figure 5, authors own, Source: Facebook Annual Report 2013, Edwards, 2014
12
As the chart illustrates, Facebook has generated consistent increased revenue over the
past 5 years. However, the profit margin was volatile until recently and has only
stabilized in 2013. The IPO in 2012 affected profits as it was a tumultuous time
financially for the company (Facebook Annual Report 2013). However, as the firm has
finally managed to find a profitable revenue stream from their mobile operations, they
were able to increase mobile revenue from 30% to 59%, making mobile income their
largest source of income (Edwards, 2014). Since its further expansion into mobile
through WhatsApp, the outlook on profits for 2014 is promising.
13
18%
32%
15%
9%
Finance
Food and Drink
Retail
Games
Entertainment
Others
13%
13%
14
Snapchat, Instagram and WhatsApp, which all have maintained a spark of cool by
refraining from ubiquity but focusing on their trade mark feature (Knighton 2013).
1.2.6. BCG Matrix
When applied to the BCG Framework, it becomes evident that Facebook is a Cash
Cow- as it currently holds highest market share, but only sluggishly grows its user base
or even experiences declines in Europe (Figure 7). Figure 8 demonstrates Facebooks
stage in the product lifecycle, placing it at its maturity stage.
Fig
ure 8, Source: Payambarpour
15
16
Fig
ure 9: Ansoff Matrix, Authors own
If all the growth strategies have been fully exploited and the maturity stage extended to
its maximum potential, it is natural to slowly mature with the market. However, Facebook
is still the worlds largest and most integrated social network. This IMC campaign will
allow the platform to maximize its capabilities for its existing users to significantly delay
its expiry date.
1.2.8. Morphing into a different product
According to a recent study, older teenagers perceived Facebook as not just on the
slide, but basically dead and buried Simpler social networks, such as Twitter, Snapchat,
Instagram and WhatsApp have started to take its place.
The continuous loss of young users is attributed to the fact that it has been regarded as
uncool and profiles purely kept alive to keep in touch with older relatives (Sparkes
2013). What appears to be the most seminal moment in a young persons decision to
leave Facebook was surely that dreaded day your mum sends you a friend request
(Miller, 2013). Professor Daniel Miller of University College London, who conducted an
extensive anthropological study on social media behavior, says: This year marked the
17
start of what looks likely to be a sustained decline of what had been the most pervasive
of all social networking sites. Young people are turning away in their droves and adopting
other social networks instead, while the worst people of all, their parents, continue to use
the service. (Miller, 2013)
The chart below (Figure 10) illustrates the decrease of users from younger age groups
since 2011, whereas the 25+ segments have augmented.
18
Since Facebook has implemented its strategy to acquire younger users through different
media, it is now crucial to maximize the potential of existing users.
19
20
However, it has to be considered that an average user will not necessarily come in
contact with this touch point, unless he or she were looking for specific information.
The channel most likely to resonate on an informal level with its users is Facebooks own
Facebook page. With 163 million likes and the power to maximize their own organic
reach, it can be regarded as an effective tool to influence the audiences attitude.
21
Despite the lack of marketing communication activities up until now, Facebook was able
to grow into an enormous network solely relying on word of mouth endorsement.
However, as the recent changes have demonstrated, it does not suffice if long-term
customer loyalty is desired.
1.4.2. Advertising
In 2012, Facebook launched its first advertisement to celebrate the acquisition of 1billion
users. In this ad, the company compared itself to chairs, as things that people use to get
together so they can open up and connect. Chairs are for people, and that is why chairs
are like Facebook. The advert did not resonate particularly well with the public and was
a base for many parodies (Starke, 2012). Mashables editor-in-chief Lance Ulanoff said
It was created to celebrate the social media platforms 1 billion active monthly users and
my takeaway is that Facebook is an empty chair. He further highlighted that the ad used
confusing analogies, that there was an absence of technology but an overabundance of
vagueness that spoilt an otherwise beautifully shot commercial (Consunji 2012).
The commercial ran in 13 countries including America, the UK, Japan and Indonesia.
22
The company has since launched numerous friendship-themed short video adverts and
picture adverts on their own Facebook page, which are also available on their own
YouTube channel (Figure 14-17).
23
Moreover, the recently launched Nearby Friends feature was solely advertised through
their newsroom, which an average user will not actively engage with (Figure 18).
24
Facebook features Facebook stories, which asks users to submit their extraordinary
story that involves Facebook as a platform of communication. It is heavily reliant on viral
aspects than pushing their products further. (Figure 19)
So far, Facebook spread through word of mouth and a small amount of PR activities.
However, as it is nearing its saturation point and struggles to attract younger users on
board, it is time to rethink the marketing strategy.
2. Campaign Scope
2.1. The Role of Integrated Marketing Communications in Marketing Management
The past decade has witnessed a continuous transformation of opinions regarding the
implementation of integrated marketing communications (IMC). Initially, the focus lied on
integrating all elements of the promotional mix to make messages appear and sound the
same to all customers exposed (Eagle et all 2007). IMC has since grown into a practice
beyond working with adverts communicating one single message and one unifying
brand, but are now much more personalized, relationship-based, interactive, customeroriented- purposefully designed to influence behavior and consequently change attitudes
(De Pelsmacker et all 2010). Kilatchko (2008) suggests that the impact of IMC cannot be
regarded solely as a communications process, but needs to be considered an audiencedriven management process, as the customers influence is steering the direction at the
core of the campaign. Todays marketing communications world is particularly
challenged by media proliferation, audience fragmentation and consumer empowerment.
25
On the one hand, audience and media fragmentation aids targeted marketing by
providing various channels that reach a specific consumer. On the other, it reduces its
effectiveness if the chosen channel fails to capture the desired consumer. This is
precisely why the integrated marketing approach has emerged as a concept; instead of
suffocating under media fragmentation, it uses the dispersion to its advantage. To
enhance the primary advertising message and to reach out to their desired specific
consumers, marketers use tools such as promotions, sponsorships and public relations
in addition (O'Guinn, Allen and Semenik, 2012). Therefore, integrated marketing
communications (IMC) campaigns cater to the needs of todays fragmented audience
and media. As previously mentioned, it is critiqued that IMC uses mass marketing
channels and sends a unified message across all traditional and non-traditional media.
Further, it is said to face strong barriers, such as restriction in creativity and
unaccommodating organizational structures, which encumber success (De Pelsmacker,
Geuens and Bergh, 2010). However, the combination of the efforts of each medium has
a greater impact all together than a message wandering through a single channel.
Moreover, IMC is essentially used to allow one medium's weakness to be
counterbalanced by anothers strength, synergized components to support each other
and create grander effect (Kitchen et all 2004). Contrary to common belief, a successful
IMC strategy does not signify that an organization should work only with a single
message and one unifying brand. More realistically, an integrated method encourages
marketers to implement a strategy with multiple targets and allows them to attain
integration of different communication messages, functions and brand within one
organization. Consequently, IMC has the potential to profoundly transform the meaning
of marketing communications and might even be the succeeding step in the evolution of
marketing. (Dewhirst and Davis, 2005, Kilatchko, 2005, Grove, Carlson and Dorsch,
2002, Lee, 2002, Phelps and Johnson 1996)
2.2. Facebook and IMC
To date, the Facebook user community has grown virally with users inviting their friends
to connect with them, supported by internal efforts to stimulate user awareness and
interest.(Facebook Annual Report 2013) To date, Facebook has heavily relied on
earned media and bits of advertising efforts.
In comparison to its main competitor, Google, Facebooks global ad spend with $117
million in 2013, seems incredibly small to 21 billion (Figure 20). Considering the different
size and nature of both businesses, this chart does not provide enough insight into the
allocation of funds for advertising.
26
Figure 20: Authors own, Source: Google Annual Report 2013, Facebook Annual Report 2013
When the advertising spend is put into context with the companys revenue (Figure 21),
it becomes visible how much of its total revenue the companies are dedicating towards
advertising. Where Facebooks $117 million are just about 1.49% of its total revenue
(after cost), Googles $21 billion make up 37% of their ad spend. As previously
mentioned, Facebook has been relying on its community to grow its user base virally,
with a certain amount of internal efforts that have stimulated user awareness and
interest.
27
Figure 21: Authors own, Source: Google Annual Report 2013, Facebook Annual Report 2013
Retain existing users by providing them with value through meaningful and
relevant features
Stimulate Travel Advertising Sector Revenue
To increase user engagement (frequency of use) by 30% of existing users aged
24-35, with a spillover of 6 years below and above
o Likes on branded and friends posts
o Comments on branded and friends posts
o Uploading of content: photos, videos, articles, status updates
o Reviews on restaurants and places
o More completed basic data on user profiles
28
29
through the usage of tools such as social media. It is even suggested that the illustration
of functional and emotional benefits alone will not suffice for a brand to excel since
millennial brand fans believe they have a shared interest in the success of the brand
(Fromm 2013). Bill George (2009) suggests, People are their own medium, their own
creation. You have to let them in, let consumers move your ideas along. They want to
interact. Measure Return on Involvement, not Return on Investment.
Distrust- Consumer Empowerment
With the level of the aforementioned involvement levels, it needs to be highlighted that
generation Y consumers are extraordinarily empowered. Especially with the abundance
of information available on the Internet, where tech-savvy Millennials can easily access
reviews and opinions, firms are challenged to thoroughly work on their transparency.
Consumers are now extremely marketing-savvy and choose to trust recommendations of
friends or family far more than any company sponsored advertising efforts (Kirby 2006).
Therefore, companies targeting this age group have witnessed an increased importance
of public relations, as it is imperative to increase earned media to gain credibility and
maintain authenticity. It can be argued that Millennials are eager to make most out of
their lives- reducing risk through pre-purchase information searches and relying on
recommendations of their friends to create a unique experience for themselves.
The Now Generation- Real Time Information
As digital natives, Millennials seek instant gratification particularly focusing on speed,
ease, efficiency and convenience in all their transactions. It is highly important to these
consumers that the service they are receiving is flexible and can be tailored and
customized according to their individual needs.
Moreover, again relating to their tech-savvy nature, they demand information as it
occurs. As the first generation to grow up with social media, the urge to access real-time
reporting from any location is an integral part of their lives. The sharing of their life
activities can be particularly visible when a TV show airs with a hashtag on the corner of
the screen, enabling all viewers to participate in discussions about the show on Twitter or
Facebook (Lee 2013).
Social Self-Expression
With no generation more multi-ethnic than them, Millennials fully embrace the act of selfexpression. A study by PewResearch has shown that at least 75% of Millennials have a
31
profile on a social networking site and have created and shared content in video or
picture format. Almost 40% have one or more tattoos and 25% have at least one
piercing- that is six times more than their older generations (Khan 2010). With 200 or
more friends, this generation is known to have the largest amounts of friends or followers
on social platforms. There is a fear of missing out if not kept up to date through social
media. In addition, they seek validation through likes of their posts and photos. A study
conducted by BCG illustrates that the majority agree that their lives feel far more
enriched if they are connected to people through their social media, which even extends
to favouring brands with Facebook pages.
Moreover, the aspiration to connect and share experiences with peers exceeds the
online bubble- Millennials desire to participate in group activities with people outside their
immediate family, much more than their previous generation. They further seek
reassurance and validation from their friends and coworkers, whom they shop, dine and
travel with. Companies such as restaurants and retailers have capitalized on these
habits using location-based services such as Foursquare; since people in groups tend to
spend larger amounts of money than if they were by themselves. (Barton, Fromm and
Egan, 2012)
Social Responsibility
Generation Y is known to have an inner hippie and are strongly motivated by the
thought of making the world a better place. As they were taught to recycle in pre-school,
green values have been planted into their value system early on. They feel that working
for a good cause is an integral part of life and are concerned with big issues the world is
facing (Barton, Fromm and Egan, 2012). Deloitte's Millennial Survey revealed that the
world's future leaders are progressively viewing business through the lens of social
impact. 52 percent of participants felt that, more than any other part of society, business
would achieve the greatest impact in terms of solving societys biggest issues (Deloitte
2013) Moreover, instead of one-time donations to charities, Millennials volunteer for
causes close to their hearts.
Traveller - Explorer
There is no generation that has travelled as much as this one (Shellenberg 2013). The
prevalent multiethnic nature and intense global migratory of this generation also aids in
the process of stimulating travel as people are calling several countries their homes. They
are known to be adventurous, letting their holidays fall into place as opposed to planning out
32
details beforehand. They also ask their friends for recommendations and live-report about
their travels through their social media channels. Moreover, connecting to their strong
feelings about social responsibility, voluntourism, where people travel to places to volunteer
for social causes, has gained massive popularity (Travel 2.0 Consulting Group, 2008).
Personality
Values
Opinions and
Attitudes
Interests
Technology/Gadgets
Cultures/Travel/Charity
Lifestyles
Figure 23, Authors own, adapted from Mullen and Johnson 1990
33
Needs Recognition
Information Search
The low-involvement nature of the service does not require an extensive information
search before signing up for it. More recently, however, data privacy issues have posed
a greater concern for users. Facebook heavily relies on selling data, ranging from
personal information to even browsing data, as their main source of income (Morran,
2014). The recent National Security Agency (NSA) scandal in the US, with some
claiming Facebook collaborated in providing data to the US government, shed further
negative light on the companys ethics (BBC 2014). When the acquisition of WhatsApp
34
was confirmed, the competing messaging service Telegram, well-known for its securityfocus, started acquiring users at a rate of 5million a day (Russell, 2014). Savvy
consumers therefore pose a threat to increasing usage and engagement, as they are
less willing to reveal information. Hence, it is of utmost importance to provide easily
accessible and fully transparent information on data privacy.
Evaluation of Alternatives
As determined earlier, the desire to communicate with existing users will have the
strongest influence on a potential users decision. However, besides the transparency
and accessibility of terms and conditions, its unique features will facilitate the evaluation
of competing services.
Purchase
The purchasing process is highly facilitated as no money exchanges hands, but only
requires little basic information to open an account.
Post-Purchase Evaluation
This is the most crucial part for Facebook to focus on. They have to prove to their users
that they are able to continuously provide them with meaningful ways to create value
and become an indispensable part of their lives. Figure 25 illustrates post-purchase
behavior (Cant 2006), where users evaluate their product or service during its usage. If
Facebook fails to provide an incentive to its users to engage with the platform, existing
users might dispose the product and gravitate towards another one. The IMC campaign
will focus on making users aware of the daily usage possibilities and therefore elicit an
increase in engagement and ultimately lead to customer satisfaction, which can spread
positive word of mouth and encourage potential users to get on board.
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.
2.5. Branding Issues
The below brand wheel provides an overview of what Facebook as a brand represents.
The brand essence, connect the world, is closely related to their mission statement of
making the world more open and connected. Above all the monetary goals, Mark
Zuckerbergs primary motivation is to make a significant impact on the world. Even
though people are aware that the platform itself is the most advanced and integrated, its
novelty and excitement have vanished after its presence in the market for over 10 years
(Miller 2013). However, with the next generation of web knocking on the door, it has
never been more important to keep users loyal and interested. Facebook, next to
Google, could be a main contributor to the creation of Web 3.0. It is said that the latter
will facilitate the use of information e.g. if a movie night out is planned, people will google
movie reviews, playtimes, ticket purchasing, restaurants nearby, reviews of the food, etc.
Ultimately, one has consulted dozens of websites until a choice can be made. Web 3.0 is
speculated to simplify customer experience by using complex search sentences, e.g. I
want to see a funny romantic movie that plays close to Leicester Square London and
have Japanese food with ratings above 4 stars nearby before watching the film. What
are my options? (Strickland 2014). Since Facebooks Graph Search is indexed precisely
to provide this type of service, it is crucial to retain its consumer base. The brand
essence, connect the world, needs to shift to a more active explore the world, since
Facebook gives one all the tools to do so.
36
Benefits
Benefits
Attributes
Attributes
Keeping
in
touch
with friends/family
friends/family
Keeping in touch with
Social
Medium/Community/Network
of
Family
and
Friends
Social Medium/Community/Network of Family and Friends
Have
content
liked by
by others
Have
content
liked
others
Content
Content Creation,
Creation, Consumption
Consumption and
and Sharing
Sharing with
with Multiple
Multiple
Self-expression
Self-expression
Receivers
Receivers
Keeping
current affairs
Keeping up
up with
with current
affairs
News
News Feed
Feed
Obtain
information
on
companies,
products and
and reviews
reviews
Obtain information on companies, products
Chat/Communications
Chat/Communications Tool
Tool
Accessible
through
various
electronic
devices
Accessible through various electronic devices
Online
Online Gaming
Gaming
F
F Logo/Blue
Logo/Blue themed
themed
Brand
Brand Essence
Essence
Connect
Connect the
the World
World
Personality
Personality
Values
Values
Explorer
Explorer
Outgoing
Outgoing
Convenience
Convenience (to
(to share/keep
share/keep in
in touch
touch with
with many
many people
people
Innovative
Innovative
at
at once)
once)
Social/Friendly
Social/Friendly
Community/Belonging
Community/Belonging
Popular
Popular
Increased
Increased Popularity
Popularity through
through Self-Expression
Self-Expression
Multi
cultural
Multi
cultural
Makes
me
feel
inspired
by
observing
friends
activities
Makes me feel inspired by observing friends activities
Intelligent
Intelligent
Figure 26
New!
Figure 27
Desired Image
Helps you to make the
most out of your life
37
38
Figure 28, Authors own, adapted from Ackermann and Eden, 2011
39
Sales Promotions take on many different shapes, such as coupons, free products and
samples, fixed ratios such as buy 1 get 1 free, and many more. It aids to enhance
customer experience and communicate the brand personality to customers. Since
Facebook does not have in-store products for purchase, the only sales promotion
technique that will augment synergy across the entire campaign is prize in form of a
contest. With the prize technique, the benefit for the consumer is determined by
whether he wins or not. The advantage thereof lies in the fact that the costs for such
campaigns can be pre-calculated and has no variable cost attached depending on the
number of participants. Further, a far more valuable benefit can be given to the
consumer as the prize, compared to a promotion where the reward is available to
anyone (Mullin 2010). This type of random ratio reinforcement scheme, where the
participant gambles with the chances of winning, can have a strong persuasive influence
(Solomon 2010).
40
3. IMC Campaign
3.1. Message Development
Facebooks skeleton is nothing but a highly complex structure of enormous data. Much
like the questions of what would happen if we were able to access the 100% full potential
of our brain, Facebooks data is quite properly indexed but left not to be accessed. In
addition to openness and connectivity, the campaign will include the element of
exploration. In order to elevate its image, which is currently resting on a level which
somewhat has lost its novelty long time ago, a new verb, associated with activity and
engagement, needs to be introduced.
Facebook is primarily used for sharing with many people at once, and to consume
picture and video content of friends (Petronzio 2014). Users especially use the platform
to share content related to travel as in pictures, location check-ins, travelling to status
updates (Constine, 2014). Seeing friends pictures of beautiful sceneries evokes travel
envy and intensifies ones desire to explore that place oneself (Tam 2013). Whilst social
media can be seen as a medium that leads to isolation, the Open Explore Connect
41
the best experiences to be created. Formulating a message needs to solve the following
problems:
The key content of the message is to make yourself and the world a better place through
exploration and curiosity. It will be communicated through various channels, especially
through the campaign contest, advertising
3.1.1. Campaign Messages
There is a slight difference between a tagline and a slogan. A tagline is a distillation of
the corporate values and identity into a short and catchy phrase to reinforce the brand
essence and highlight the difference between the firm and its competitors. (Schnotz
2014)
Tagline: Open. Explore. Connect.
Facebooks Tagline so far has been its Like icon
every short video they have posted on their own Facebook wall. It is also accompanied
by a small sound; similar to its messaging notification tone. Since this iconic sign is
unmistakably recognizable, it is going to be kept. However, since the campaign is trying
to move away from and refresh its old image and draw attention to its true potential,
these three words are going to be added:
Open - Facebook has had a tremendous impact on global communications as it has
visually shortened distances, opened and brought the world closer together.
Explore- This is the element that adds novelty to the whole image, whilst the other two
component just act as a reminder of Facebooks potency. As previously mentioned, it will
embody the adventure and curiosity resonating with Millennials, unlocking the potential
of the tremendous data that is available, but not used most efficiently. Moreover, since
this campaign is aiming to increase revenue from the travel sector, the exploration
element will also educate and inspire its audience to travel more.
Connect- Along with its mission statement of making the world more open and
connected, Facebook has truly changed the way in which people connect across the
world. Not only through linking with friends profiles but also connecting users to
tremendous amounts of data and information, truly underlining the meaning of web 2.0.
42
43
The prize awaiting the candidate with the most likes on his post is a 3 months world trip.
(Figure 29)
Facebooks Facebook page has 163million likes. Since it is the companys own page,
they can use maximum organic reach.
Reach
163 million
Response
Conversion
Rate(Notice,
Rate(Actual
Likes,
participants)
Comments)
25%
0.012%
40.75 million
5000
Sales (Winner)
Fulfillment
and other cost
GBP 100000
The cost listed above of GBP 100000 includes not only the travel expenses, but also
marketing salaries for design and maintenance of the contest.
The conversion rate of 0.3% might seem low relative to the amount of people reached
out to, however, considering the large workload factor, the numbers are realistic.
To make things more interesting, the winner will be employed by Facebook for these 3
months. The core of the travel is that nothing will be planned beforehand- the winner will
have to inquire on Facebooks Facebook page what his next destination and activities
should be. The comment with the most likes will be considered the next destination.
44
Since the opinions and experiences of millions of people will come together, this contest
will unlock the potential of minds working together creating the ultimate millennial travel
guide.
On top of eliciting high levels of engagement, it will inspire people to travel. As
mentioned under 1.2.4., there are five stages to taking a vacation: Dreaming, planning,
booking, experiencing and reflecting. 52% of people say Facebook induced their
dreaming stage, and 95% even said they used Facebook prior to making their travel
arrangements (OReilly 2013). Now, consumers can become aware of the fact that
Facebook is present in all five stages of travel preparation as it is visually put into
context. Consumers actively engaging and seeing their suggestions being taken into
consideration will add much more meaning and weight to the whole process. Since
Facebook has significantly increased their travel sales representatives (Rilley 2013), this
is the ultimate timing and incentive for the travel sector to start investing in Facebook
45
advertising. After the winner returns home and has created his ultimate generation y
travel guide, users are able to win the trips he has been on- these will be 15x 2-week
vacations for 2 people. Facebook will post small challenges and Instagram contests,
again winning based on likes, through which the users interest will be kept at a higher
level since incentives are provided.
Reach
33 million (UK)
33 million (UK)
Current Travel
Current Total
Revenue/User
Travel
0.07 (6% of
Revenue
2310000
total revenue)
Desired Travel
Desired Total
Revenue/User
0.25 (20% of
Travel Revenue
8250000
total revenue)
explanatory
as
well
as
emotional elements
Communicate the new brand essence
Foster a favourable attitude towards the
brand
What (Key Message)
Where (Channels)
When (Timing)
Magazines, YouTube
Over a course of a year, with bursts 1
How (Execution)
47
48
Escalator Advertising
As far as underground escalators are concerned, the entire rows of adverts will be
reserved to ensure maximum effect. The audiences interest can be captured at the start,
and towards the end of the escalator ride, people will have enough information to
associate these adverts with the Facebook brand. Since London underground escalators
are fairly long, it will leave enough time for people to scan the QR code.
49
The scanning of the QR code will lead to Facebooks newsroom/contest page, where all
the information regarding the contest is available.
50
3.3.1.2. Newspapers
The outdoor advertisements will start one month before the contest officially starts, as a
teaser campaign. Newspapers should support the impact the outdoor campaigns
relating to the contest. In the week, in which the contest starts, a front cover page of the
Evening Standard and Metro will be used to announce the contest.
London Evening Standard
With a readership of 1020000 of ABC1 consumers and the largest share of the age
group 25-34 years, an advert in this newspaper will complement the outdoors
advertising. The use of the coverpage at the start of the contest ensures maximum
exposure.
Measuremen
t
Circulation
Delivery
Circulatio
887294
51
Readership
n
Adults
ABC1
1546000
1020000
Metro
Target Age 18-44 and a national circulation, a cover page in the metro will reach national
awareness.
Measuremen
t
Circulation
Readership
Delivery
Circulatio
3'100'000
n
Adults
ABC1
1'382'000
953'000
After the contest has closed and the blogging adventure begins, the nature of the
adverts will shift from promotional to functional. As buzz and top-of-mind awareness
have been created, educational ads should be introduced as long as the consumers
attention span is still active.
52
However, these ads will be on a smaller scale and be on the newspaper once a week, on
a quarter page. Even though these ads will focus on the functional benefits of Facebook,
it is still in line with Unlock the Potential slogan. By using the integrated features fully, it
should provide the user with the most optimal user experience and facilitate his or her
day-to-day life.
3.3.1.4. YouTube
YouTube has a unique audience of approximately 10 million and a 26% active reach in
the UK (Mediatel, 2014). A Nielsen study has shown that online video ads are more
effective than TV adverts as users are forced to watch them- especially if they do not
have the option to skip (Keane 2014).
.
53
54
Media
Business
Customers
third
parties, it would be favourable for Facebook to suggest feature stories to the millennial
online press. For the latter to be realized, the organization needs to maintain favourable
relationships with the press. However, instead of being a passive, Facebook could
actively inform its key journalists about its new features and hacks to provide them with
interesting content and in return, gain third party positive endorsement.
Relationships with Journalists,
EliteDaily
Buzzfeed
General Public
55
Mashable
Wired
Upworthy
56
current user base. The aim is to increase travel-advertising income from currently 6% to
20% of the total revenue stream.
Since the gaining of younger segments is covered by their aggressive merger strategy,
the marketing objective is to retain and entertain existing users and increase
engagement. This reverts back to the corporate objective of obtaining meaningful data
from users. Engagement is elicited by providing users with a travel-themed contest,
which also resonates with the new brand essence of exploration. The vertical integration
of travel and exploration provokes users to actively participate and truly demonstrate the
meaning and advantages of Web 2.0, where information exchange can aid to creating
the best experiences.
The IMC objectives are again closely interlinked to achieve every objective individually
on every level. The strengths of each tool are used to offset possible weaknesses of
another. As the promotional contest is at the core of the campaign, actively encouraging
users to participate and discover the meaning of the brand essence for themselves.
One the one hand, tools such as advertising and public relations are used to increase
awareness of the happening of the contest, but will revert to advertising other features
when sales promotion and direct marketing are up and running. This ensures efficiency
across all tools, no medium is ever fully resting, but alternating between active and
supporting functions. Even if advertising takes over the role of drawing attention to the
functional attributes of Facebook, it is still with the intention of unlocking the potential of
the consumers social media usage.
The vertical integration of all objectives with the linkages to relevant tools and common
theme ensure a more powerful, multiplied impact than one tool alone. The synergy
created will support the achievement of objectives smoothly.
57
58
Since the sales promotion contest is held on a social media platform, which encourages
active participation and responses of users, it blurs into direct marketing. The YouTube
advertisement is a traditional visual tool embedded in a non-traditional marketing setting.
Moreover, the outdoor advertisements all have a QR code to allow a fast and direct
response. PR also communicates the same message, but with the objective to obtain
third-party endorsement from journalists to maintain authenticity. Ultimately, public
relations will also host events to represent their excellent services to their business
customers and hence closing the circle. The tools are knit together tightly and present a
consistent message throughout every activity. The combination allows for a multiplied
impact with positive synergy.
4. Campaign Delivery
4.1. Campaign Budget
Budget
Promotion Contest
Small Contest
Outdoors
Tube Billboards
Escalators
Buses
Newspapers
Evening Standard Cover Page
National Metro Cover Page
Frequenc
y
GBP
Total
1
1'500'000.00
15
7000
105'000.00
10
10
16
5500
23000
6200
55'000.00
230'000.00
99'200.00
1
1
16800
36104.6
16'800.00
36'104.60
59
10
10
8400
18052.3
1 months
84'000.00
180'523.00
700'000.00
100'000.00
3'107000
60
The world travel market will be held in November. It will be advantageous that it is held
close to the end of the campaign, as there will be visible results with which the business
customers can be convinced.
To keep the users interested, there will be 2-weekly to monthly contests, where they can
win a trip to one of the countries the blogger has been on.
Oc
Jun Jul Aug Sep t
WINNER
Page
Digital
YouTube
Public Relations
Press Releases
Feature Stories
World Travel Market
61
5.1. Pre-Testing
A pre-testing can predict the success of a campaign and reveal areas of improvement.
5.1.2. Concept-Testing
In order to estimate the response the campaign will elicit from the public, it is sensible to
use focus groups with a sample group of people that represent the target audience. It is
proposed to use four separate focus groups, two with the younger spillover of 18-24 and
the other two the older group of 24-35year olds. The separation of these two age groups
will permit insight whether age is determining any differences in preferences and
responses. It could also show if there was any difference in self-expression through
social media.
Since the campaign aims to shift its brand image, essence and slogan and augment the
brand to a stage of novelty, it is more appropriate to use a qualitative research method
such as focus groups. The latter allows for the moderator to understand the opinions and
attitudes of the group. It has to be kept in mind that the result, which this qualitative
research delivers, is completely representative of the target audience under examination.
However, a direct rating system can deliver the understanding of whether the audience is
positive or negative toward an advert. In this method, respondents are questioned and
asked to rate a set of averts. The categories comprise attention, read through, cognitive,
effective and behavioural strengths (Jyoti 2010).
5.1.3 Copy testing
Copy testing is the analysis of an advert prior to it being aired. This type of pre-testing
indicates whether an advertisements message is strong enough so it can be used by the
firm. If it isnt, it will identify the parameters, which can be edited to communicate the
message with more weight. This technique is often used to shorten adverts and use the
best still frames for a combined campaign (DJS Research Ltd 2014).
5.2 Post-testing
Post-testing will finally assess the output of the campaign. Here, a quantitative approach
in form of a short survey on Facebook itself, in addition to brand tracking studies to
measure advertising effectiveness, brand awareness, beliefs and preferences, should be
used.
62
Most importantly, it is imperative to assess the key performance indicators, and if they
match the stated objectives. The following KPIs will confirm whether the campaign was
successful or not:
The travel revenue objective is measured with the sales-response method. The travel
sales team as well as accounting will be able to track these figures easily and call to
action if that sector should be underperforming.
The increase in usage and engagement can be measured with the use of Facebook
Analytics. This tool breaks down how many people have been exposed to the ad and
how many have shown some kind of response. In case Facebook notices an
underperformance, they could promote and boost the posts further to obtain increased
engagement.
6. Conclusion
Since its birth in 2004, Facebook has grown and into a company of unthinkable shape
and talent. However, in an era with short-lived trends and attention spans, the firm needs
to truly figure out what is meaningful and valuable to its users. Trying to be cool by just
relying on viral word of mouth elements has gotten them to a point where their image
lost its excitement. Therefore, it is recommended that Facebook, as proposed, much
more actively engage with its users. Since it is in its maturity age and these marketing
efforts are a tool to maximize the extension of the maturity span. Facebook needs to
consider what their role in the next generation web will be, and accept the fact that it
might not be a bad thing to mature with its market and morph into a completely different
product. However, the time has not come yet- and Facebook could, much like this
campaign proposes, focus on particular revenue sectors and incentivize customer
engagement, to monetize their residual existence.
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Appendix 1
Financial Overview Social Media Market Players
Competito
r Analysis
Product
Facebook
Social
Networking Site
Instagram
Google +
Photos or 15second
videos with filter and Social Networking and
hashtags
Identity site
Desktop
and
Outlet
Mobile
Mobile and Desktop
Target
Audience
18-45
16-24
Turnover
USD 7.8 billion
part of Facebook
Ownershi
p
Facebook
Facebook
Company
Worth
USD 100 billion
USD 1 billion
Snapchat
Twitter
LinkedIn
Selfdestructive
photos,
Professional
Social
videos and MicroNetwork, Recruiting, Job
drawings
Blogging
postings
exchanging
mobile
service
Mobile
13-25
n/a
Snapchat
USD
860million
Mobile and
Desktop
18-45
USD
665million
Twitter
USD
49
billion
Part of Google
Google
USD 8billion
Part of Google
71
72