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The Power of Like Europe

How Social Marketing Works for Retail Brands

July 2012

• The Power of Like Europe is a collaboration between comScore and Facebook

• It is largely based on data from comScore’s Social Essentials™ and Action Lift™ products

• The study analyses the social marketing efforts of retail fashion brands across the three largest advertising markets in Europe;• The UK – ASOS, Topshop

• France – La Redoute, Zara

• Germany – H&M, Zara

Background

1. Europe is one of the largest & most engaged markets for social networking

2. 32% of Facebook user time is spent on the Homepage, so continuous posting of relevant content is key

3. Friends of Fans offer a unique opportunity to expand a brand’s reach and create a new audience with which to engage

4. Friends of Fans often differ from Fans in their profile, but like Fans they show a propensity to visit and buy from brand websites

5. Facebook paid impressions drive purchasing – ASOS saw a 130% uplift in online sales among those exposed to the campaign

Summary of findings

Top highlightsFacebook drives purchase

ASOS Fans and Friends of Fans are 10% more likely to buy on ASOS.com

NB: online sales uplift relative to a control group who were not exposed and demonstrated a similar affinity to ASOS. Purchase behaviour identified through the ASOS.com “Thank You” page displayed post-purchaseSource: comScore Action Lift, April 2012

Facebook paid impressions drive purchasing – ASOS saw a 130% uplift in online sales among those exposed to the Facebook campaign

Quotes on the Power of Like Europe

“While every campaign is unique and may vary in its ultimate effectiveness, this research demonstrates how Facebook marketing can be effective in reaching consumers and influencing their actual purchasing behaviour”

Mike Shaw, Director of Marketing Solutions, comScore

“ASOS has been at the forefront of Facebook marketing for many years, and in order to continue increasing investment it is crucial to have access to reliable ROI measurement. The recent research by comScore shows that ASOS experienced a substantial uplift in site visits and online purchasing as a result of our paid advertising on Facebook”

Fiona Marshall, Head of Marketing Womenswear, ASOS

**MORE DETAILED SLIDES IF NEEDED**

The Power of Like Europe

How Social Marketing Works for Retail Brands

July 2012

• The Power of Like Europe is a collaboration between comScore and Facebook

• It is largely based on data from the Social Essentials™ and Action Lift™ products, which are measurement services based on comScore’s proprietary 2 million person global panel of internet users from a home or work computer

• The study analyses the social marketing efforts of retail fashion brands across the three largest advertising markets in Europe;• The UK – ASOS, Topshop

• France – La Redoute, Zara

• Germany – H&M, Zara

Background

Marketing Imperatives

Reach Resonance Reaction

Reach – retailers can reach a significant audience Friends of Fans represent a substantial potential audience for retail brands

Looking at the top 1000 brand pages, for every Fan there are an additional 81 Friends of Fans that can be reached

Retail brands can significantly expand the reach of branded content on Facebook

In Germany, the reach of the Zara site rose from 1 percent among the total internet population to over 12 percent among exposed Fans.

22.2mFriends of

Fans

684k

Fans

In France, La Redoute for example has 684,000 Fans but a Friends of Fans audience of 22.2 million

Resonance – your message is more likely to resonate

Increased website visits amongst Friends of Fans

This suggests pre-existing receptivity for brand messaging, product information and promotions within this group

Ability to market to consumers who exhibit lighter visitation patterns at impressive scale

The Friends of Fan networks of the retail brands in this study (e.g:  ASOS, TopShop, Zara, H&M, La Redoute) represent audience sizes in the millions

ASOS site visitors who are a Fan or Friend of Fan were over 10 percent more likely to make a purchase on the ASOS site, compared to site visitors that were not within ASOS's Friend of Fan network

Reaction – your message will impact purchase behaviour

Campaigns on Facebook offer a way to drive online purchases.

In a recent ASOS campaign, paid advertising generated a 130% uplift in sales on the ASOS website in the four weeks following ad exposure. 

This is relative to those consumers who were not exposed and importantly demonstrated a similar affinity to ASOS as the test group (e.g. site visitation and purchase) in the four weeks prior to the advertising campaign.

Share of Visitors Share of Minutes

29%38%

17%

19%

34% 18%

10%15%

9% 11%

Test North America Asia Pacific Latin America Middle-East & Africa

Source: comScore Media Metrix, May 2012

% Share of Social Networking Visitors and Minutes By Region

29%38%

Europe is not only one of the largest markets for social networking, but it is also more engaged, with a larger proportion of total minutes than any other region

Europeans are highly social

Facebook.com and Apparel Site Cross-Visitation, Unique Visitors (Millions)

Source: comScore Media Metrix, Europe, May 2012

Apparel:121.1 MillionVisitors

Facebook:266.4 MillionVisitors

Shared Audience:98.1 Million Visitors

Facebook users are 20% more likely to visit an Apparel site than the average online user, making it crucial for brand marketers to understand Facebook’s potential for reaching, engaging and converting potential customers

Apparel Sites

High cross-visitation between Facebook and Retail

32%

17%16%

5%

29%

Homepage/Newsfeed

Profiles

Photos

Apps/Tools

All Other

With nearly a third of time on Facebook spent on the Homepage/Newsfeed, it is extremely important for brands to invest energy in creating a dialogue with their fanbase through the continuous posting of relevant content

Share of Time Spent on Facebook.com by Content Section

Source: comScore Media Builder, UK/FR/DE, Dec 2011

Newsfeed is key in driving consumer engagement

28.5mFriends of

Fans ASOS has the ability to disseminate marketing messages to nearly 44 Friends of Fans for every 1 ASOS Fan within the UK. This multiplier grows to 81 Friends of Fans when examining the top 1,000 Brand pages

636k

Fans

22.2mFriends of

Fans

684k

Fans

23.5mFriends of

Fans

1.2m

Fans

Friends of Fans offer a substantial potential audience

ASOS Topshop La Redoute Zara H&M Zara

1.8%1.6%

1.5%1.4%

0.4%

0.7%

2.2%2.3%

2.1%

2.8%

1.0%1.2%

Fans Friends of Fans

Total Internet Reach (%) of Social Media Impressions on Facebook

Source: comScore Social Essentials, UK/FR/DE, Dec 2011

All five brands analysed across the UK, France and Germany demonstrated that the reach of Friends of Fans exposed to social media impressions exceeded that of Fans alone

And a way to expand a brand’s reach

Total Internet La Redoute Site Visitors

La Redoute Fans La Redoute Friends of Fans

10%3% 2% 5%

16%

14%

27%

34%

17%

17%

19%

21%18%

21%

24%

15%16%18%

13%

18%24% 27%

15%7%

Persons 55+

Persons 45-54

Persons 35-44

Persons 25-34

Persons 15-24

Persons 6-14

Demographic Profile of La Redoute Exposed Users vs. Site Visitors vs. Total Internet in France

Source: comScore Social Essentials, France, Dec 2011

La Redoute Fans are younger than the general online population, and Friends of Fans are even more so. It may benefit brands like La Redoute to take this into account when devising strategies to drive customers into the physical or online stores

10% 3% 2% 5%

Friends of Fans often differ in demographic profile...

Travel

Technology

Sports

Retail

Real Estate

Games

Entertainment

Automotive

Auctions

50 100 150 200 250 300

La Redoute Brand-Exposed Fans: Content Category Visitation by Time Spent Index

Source: comScore Social Essentials, France, Dec 2011

The online behaviour of Fans often differs substantially to that of the average internet user. This knowledge better informs marketing strategies such as developing social apps, tailoring media plans or identifying potential partners to suit the identified behaviour of the Facebook Fan Network

…and in their interests

Zara

H&M

Zara

La Redoute

Topshop

ASOS

5.5%

17.6%

6.2%

34.5%

16.8%

25.6%

12.6%

28.6%

7.8%

48.2%

24.2%

34.1%

1.0%

6.1%

1.6%

19.5%

4.4%

9.5%

Total Internet Fans Friends of Fans

Site Visitation Among Brand-Exposed Audiences

Source: comScore Social Essentials, Dec 2011

For the retailers studied, both Fans and Friends of Fans were disproportionately more likely to visit the brand websites – where purchases occur – compared to the average internet user

Fans and FoFs show affinity for retail brand websites

ASOS Site Visitors, Non-Social

ASOS Site Visitors, Social

90 95 100 105 110

Index of “Thank You Page” Site Visitation (Total Internet=100)

Likelihood to Purchase on ASOS.com - Social vs. Non-Social Visitors

Source: comScore Social Essentials, UK, Dec 2011

ASOS Site Visitors who are a Fan or Friend of Fan are much more likely to make a purchase on the ASOS site compared to those with no social link

Friends and FoFs are more likely to purchase online

0.2%0.3%

0.7% 0.7%

0.4%

1.0%

1.5%

1.7%Control Group Test Group

% R

each

of

ASO

S “

Thank Y

ou”

Page

Purchase on ASOS.com Following Exposure to Facebook Paid Impressions

Source: comScore Action Lift, April 2012

Facebook paid advertising generated a 130% uplift in purchase behaviour on the ASOS site, relative to those who were not exposed but who demonstrated a similar affinity to ASOS

+130% uplift

Paid Facebook impressions drive purchasing