E-commerce

E-commerce. business. technology. society. KENNETH C. LAUDON AND CAROL G. TRAVER

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video case chapter 7 Social, Mobile, and Local Marketing

case 7.1 The Power of Like

http://www.youtube.com/watch?v=KzghZOIIN40

summary This video discusses findings from the comScore/Facebook whitepaper “The Power of Like,” which examines the influence of Starbucks, Bing, and Southwest Airlines Facebook marketing messages. L=5:07.

case comScore specializes in analyzing the online and offline purchasing behavior of over 2 million consumer participants. comScore analyzes this data, along with additional demo- graphics, using “advanced statistical methods” and predictive analytics techniques, as well as the knowledge of industry experts, in order to provide reports and insights into consum- er behavior and advertising effectiveness.

comScore provides a wide variety of analytics products, some geared to different industries, that companies can use to measure and analyze their audiences and the effectiveness of their online marketing campaigns. comScore’s analytics platform, Social Essentials, is specifically designed to quantify and provide insights on a company’s social media audience and social media exposure and campaigns. It analyzes both the data gathered by comScore with the social media data garnered by a company from social media.

This video presents highlights from a joint comScore/Facebook whitepaper that analyzes data from Facebook for three companies—Bing, Starbucks, and Southwest Airlines—as a demonstration of the Social Essentials analytics platform. In it, comScore’s Senior Director of Marketing Solutions, Mike Rich, shows how Social Essentials can measure the influence of social media campaigns on a company’s Facebook Fans as well as Friends of those fans. In the case of

watch the video at

case 7.1 The Power of Like 2

these three companies, comScore was able to definitively show that News Feed messages were overwhelmingly more effective than Fan page messaging, on the order of 40 (or more) to 1.

Rich also discusses the ability of Social Essentials to provide the data marketers are looking for in their analytics, specifically reach, frequency, and GRP. Reach is a measure of the total number of people exposed to a campaign within a specified time limit. Frequency measures the number of times a person or household is exposed to a campaign within a time period. GRP, or gross rating point, measures the size of the audience that a campaign reaches, expressed as a percentage of the total potential audience for that campaign. The video presents the reach, frequency, and GRP for Facebook fans and friends of fans for Starbucks, Southwest Airlines, and Bing, and demonstrates the viral influence of fans upon their Facebook friends.

For this research, comScore was also able to combine Facebook data with data from other sources to determine how these company’s fans spent their time away from Facebook. Additionally, Social Essentials can be used to determine whether Facebook fans visit a company’s Web site and spend more on a company’s products than other users. Other metrics provided by the platform include the time spent on News Feeds, worldwide fan distribution, and demographic profiles.

1. What is different about the analytics demonstrated in this video and the analysis a company can derive itself from its own Facebook data?

2. What is the video’s demonstration of viral influence based on? Is this a viable measurement?

3. One of the central advantages promoted of using the combined research capabilities of comScore and Facebook is in the ability to determine whether Facebook messages are an effective means of marketing and whether Facebook fans translate into more products sold. Do you think the information in this video supports this? Why or why not?

copyright © 2016 kenneth c. Laudon and carol Guercio Traver.

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video case questions