June 2010

Brand Interactions on
Social Networks
Debra Aho Williamson
dwilliamson@emarketer.com

Executive Summary: The social networking audience in the US has reached critical mass. eMarketer estimates
that 57.5% of all US Internet users, or 127 million people, will use a social network at least once a month in 2010. By
2014, nearly two-thirds of all Internet users, or 164.9 million people, will be regular users of social networks.
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Marketers have been chasing this all-important audience for

US Facebook Users Who Are More Likely to Buy a
Product or Visit a Retailer Based on a Positive
Facebook Friend Referral, March 2010 (% of
respondents)
several years, using banner ads, branded pages, homepage
takeovers, targeted text ads and search keyword buys.
Whether consumers notice, or care, has been a big question in
social media marketing.

The answer is yes, with a catch. Social network users are

No willing to join branded company pages, comment on
32%
Yes
marketers’ posts and share their opinions about products and
68% services. Some ad formats are also showing positive response.

But the issues of how the social networks and marketers use
the information they glean about consumers, and how much
they guard the privacy and security of social network
Source: Morpace, "Facebook's Impact on Retailers," provided to eMarketer,
April 1, 2010 members, remain unresolved.
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Key Questions

■ How are consumers using social networks to share

information about the brands they like?
The eMarketer View 2
■ Are consumers doing product research on social networks?
The Era of Open Sharing 3
Social Networks as Research Sources 7 ■ Why do people interact with or “like” brands on social networks?
Why Consumers Make Friends With Brands 14
■ Are social network users aware of how their personal
The Murky Waters of Privacy 18
information is used for marketing? Do they care?
Conclusions 20
Endnotes 21
Related Information and Links 22

® Digital Intelligence Copyright ©2010 eMarketer, Inc. All rights reserved.

The eMarketer View
Well over one-half of all Internet users now make
social networks a regular part of their Internet
experience. Amid all the photo-sharing, status
updating, commenting and gaming, something
else is happening: Consumers are paying
attention to marketers, clicking on advertising
and interacting with brands.
Those who still think that social network users are too busy
engaging with friends to notice marketers must change their
viewpoint. Brand interactions are real, valuable and growing.
Here is a sample of what is going on:
■ Starbucks, the top marketer-run page on Facebook, was the
eighth-most popular page on the site in late May 2010, with
more than 7 million fans, according to the blog Inside Facebook.
Coca-Cola ranked 13th, with nearly 5.5 million fans.
■ Forrester Research estimated in an April 2010 report that US
consumers generate 256 billion “influence impressions” on
social networks every year simply by discussing what they read,
like or do. Many of these impressions are either directly or
implicitly about brands.
Brad is about to take in ‘Iron Man 2’
Geoffrey likes The Wall Street Journal.
Steven checked in at American Airlines
Admirals Club.
Jessica needs an energy pack in Treasure Isle!
Scott is watching TV on his iPad.
—Sample Facebook status updates, May 2010
■ 68% of Facebook users surveyed by market research firm
Morpace said they were more likely to buy a product or visit a
retailer after seeing a positive referral from a friend.
■ 64% of people who use social media, online games or mobile
devices said in a survey by Cone that when a friend interacted
with a company or brand in one of those environments it
improved their opinion of that company or brand.
®
Brand Interactions on Social Networks
Consumers do pay attention and they do interact.
However, there is a dark side to these brand interactions.As evidenced
by the multiple security holes and privacy issues uncovered when
Facebook launched its Website “Instant Personalization” and “like”
features in April 2010, there is much that consumers do not know—or
take the time to consider—about how their information is used when
they are within in a social environment.
“Sharing is not inherently a private activity.”
—Ethan Beard, director of Facebook’s developer network,
in Computerworld, May 2010
In response to criticism, Facebook in May 2010 announced that it
would make it easier for users to guard their privacy, with simplified
settings to control who sees what information and the ability to
turn off the “Instant Personalization” feature, among other things.
While the settings control which people and applications can see a
user’s information, Facebook can still use that data, including
someone’s self-reported likes or interests, to deliver targeted
advertising, even if the user changed his or her privacy settings to limit
access to the information only to certain people.Advertisers do not get
access to users’ information except in anonymous aggregate reports.
In another example, consider the brand-monitoring services that
crawl the social Web looking for the comments people make.
These comments are added to a database, often in addition to the
storehouse of information marketers have already gleaned about
the person from their e-mail subscriptions, direct-mail list and
store customer loyalty card usage.
Marketers are eager to deliver advertising based on social data.
When Myers Publishing asked agencies and advertisers in early
2010 to name the Websites that provided the most valuable
targeted audiences, Facebook and LinkedIn topped the list.
Top Five Websites that Provide Valuable Targeted
Audiences According to US Advertising Agencies and
Advertisers, 2010
1. Facebook
2. LinkedIn
3. BabyCenter
4. Glam Media
5. BlogHer
Source: Myers Publishing LLC, "8th Annual Survey of Advertising Executives
on Online Sites and Sales Organization Attributes," provided to eMarketer,
March 29, 2010
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Marketers on social networks are on the cusp of something truly
exciting: a critical mass of engaged consumers who are willing to
participate, share and spread the word about the companies and
brands they love. But if there ever were a time to assure consumers
that their information is safe and secure, and to make sure that their
brand interactions on social networks are positive, that time is now.
2
The Era of Open Sharing News portals, such as Google News,TV news Websites, topic-oriented
Websites and newspapers sites were all more likely places for
consumers to read news. But social network sources ranked higher
When Facebook launched its new social tools in than international news Websites, radio Websites or even the social
April, the changes were predicated on the notion media presences of news outlets and reporters themselves.
that consumers would embrace the idea of
Sources US Online News Consumers Use to Read the
publicly sharing the details of what they like or News Online on a Typical Day, by Age, January 2010 (%
of respondents in each group)
recommend as they browse the Web. It is a new 18-29 30-49 50+ Total
paradigm for sharing, but at the same time it A portal Website like Google News, 68% 57% 45% 56%
AOL or Topix that gathers news
represents something that consumers have been from many different sources
A Website of a TV news organization 50% 47% 40% 46%
steadily working toward. such as CNN, FOX or CBS
A Website that specializes in a particular topic 40% 38% 35% 38%
like health, politics or entertainment
Social networks are largely responsible for ushering in the era of
public sharing or, as some might say, oversharing. Once upon a A Website of a national or local newspaper 36% 42% 36% 38%

time, if you walked by an Apple Store and noticed a line extending An individual or organization, other than a 44% 31% 17% 30%
journalist or news organization, that you
out the door, you might have told a spouse or friend later on. Now, follow on a social networking site like Facebook
someone with a mobile phone and a social network account can A Website of an international news 19% 20% 15% 18%
push that information out instantaneously. And the details can organization such as the BBC or The
Guardian, or a foreign-language news site
spread virally.
A Website that offers a mix of news 12% 20% 17% 17%
and commentary, such as the
Sharing puts consumers in the middle of the information Drudge Report or Huffington Post
exchange, and content providers and marketers alike must The Website of a radio news 14% 16% 14% 15%
acknowledge the key role consumers play in the distribution of organization such as NPR
information. And they should foster it and encourage it. A news podcast from an organization 15% 14% 12% 14%
such as NPR or The New York Times
Consider the news. In the pre-social Web, consumers visited the A news organization or an individual 22% 14% 4% 13%
journalist you follow on a social
sites of news organizations to read articles. If they wanted to pass networking site like Facebook
the material on, they e-mailed it. Now, news is shared quickly and in
The Website of an individual blogger (who 13% 13% 8% 11%
real time via one-click sharing buttons and links posted on social does not work for a major news organization)
network pages, blogs and Twitter. News aggregators such as Google A news Website such as Digg or NewsTrust 7% 7% 5% 7%
News still serve a valuable purpose, but more and more the lens where users rank stories

through which consumers receive information is other consumers. Twitter updates from an individual or 8% 6% 2% 6%
organization other than a journalist
or news organization
On top of that, social networks are redefining what “news” is. In
Twitter updates from a journalist 6% 4% 1% 4%
some respects, anything that someone posts about his or her life or news organization
is news that can be shared, reacted to and commented on. Use none of the above on a typical day 7% 11% 23% 14%
Use 1-2 of the above on a typical day 30% 35% 35% 34%
According to a study on how consumers use and interact with the
Use 3-5 of the above on a typical day 44% 35% 31% 36%
more traditional forms of news, conducted by the Pew Internet &
Use 6+ the above on a typical day 19% 18% 11% 16%
American Life Project and the Pew Project for Excellence in
Note: n=1,582
Journalism, 75% of online news consumers said they get news Source: Pew Internet & American Life Project and Pew Project for
forwarded to them in an e-mail message or posted by a friend on a Excellence in Journalism, "Understanding the Participatory News
Consumer: How internet and cell phone users have turned news into a
social networking site. And 52% said they share news using one or social experience," March 1, 2010
both of these methods. 112602 www.eMarketer.com
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Moreover, on a typical day, 30% of online news consumers get It is also important to note that in the Pew study, social networks
news from a person or organization they follow on a social ranked higher than Twitter as news sources. Twitter’s audience is
networking site—in other words, someone who is not connected far smaller than that of Facebook.
to the news business.

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Brand Interactions on Social Networks 3
 More and more, consumers and brands alike are acknowledging
Brands on Twitter that open sharing is becoming the norm, rather than the exception.

eMarketer estimates 26 million US adults will use

Twitter on a monthly basis in 2010, representing
14.6% of adult Internet users.
Many brands have created Twitter feeds, with
varying success. However, there are some indications
that people are more likely to engage with brands on
Twitter than in other social environments.
For more information on how consumers interact
with brands on Twitter, see eMarketer’s April 2010
report “Twitter: A Strong Current in the Social
Media Mainstream.”
“Nearly 100% of people online share. A very
small percent of people have blogs and
tweet, or comment publicly, but almost
everybody online shares.” —Tim Schigel, CEO,
ShareThis, in an interview with eMarketer, April 2010
ShareThis, an online sharing network, found in an October 2009
study of activity on its network that e-mail was still the primary
method used to share content. However, Facebook was not that
far behind. And when all social media channels were added up,
e-mail trailed when it came to sharing.

Sharing is attracting the attention of marketers and retailers. Primary Method Used to Share Online Content Among
Among retailers surveyed by the e-tailing group, 63% said they Internet Users Worldwide, October 2009 (% of total)
thought sharing via social networking was valuable in 2010, up E-mail 46.40%
from 46% in 2009.
Facebook 33.32%

Other social media channels 14.47%

Social Media Strategies Considered Valuable* Among
US Online Retailers, 2009 & 2010 (% of respondents) Twitter 5.82%
Sharing via social networking Note: numbers may not add up to 100% due to rounding
46% Source: ShareThis study, provided to eMarketer, December 16, 2009
63% 109889 www.eMarketer.com
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Blogs
44%
52%

Community features (chats, bulletin boards)

41%
48%

Mobile applications
41%

2009 2010
Note: *rated as "very" to "somewhat" valuable
Source: the e-tailing group, "9th Annual Merchant Survey," provided to
eMarketer, March 15, 2010
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Brand Interactions on Social Networks 4
Case Study: Mederma Taps ShareThis to
Deepen Consumer Engagement
Mederma, a marketer of over-the-counter products
that treat scars and stretch marks, wanted to go
beyond its customary use of keyword search and
online display advertising to tap into a network of
influencers who would be predisposed to share
information on the subject.
Mederma and its agency worked with ShareThis, an
online network that enables people to easily pass along
content. The marketer wanted to amplify a search and
display ad campaign that ran concurrently and offered
a coupon toward purchase of the products.
Mederma’s campaign tapped into the ShareThis
network of more than 400 million unique visitors
across nearly 800,000 Websites, said Heidi Perry, vice
president of marketing for ShareThis. The campaign
targeted consumers likely to share content with
friends on social networks, or to respond to content
after hearing about it from friends. Mederma’s
primary target is women ages 18 to 49 years old,
pregnant women and those recently pregnant, as
well as anyone who has scars or stretch marks.
Catching people when they are in the process of
sharing can be powerful. “The traffic these people
drive is 50% more engaged than search traffic,”
ShareThis CEO Tim Schigel told eMarketer. “More
engaged means more page views per visit.”
Strategy:
Mederma’s agency, Empower MediaMarketing, ran a
search and display campaign between March 5 and
April 2, 2010. Consumers who clicked on an ad were
led to a landing page offering a coupon for $3 off
Mederma products. Keywords included “signs of
pregnancy,” “acne scar,” “surgery scar” and “stretch
marks.” Display ads appeared on online health and
wellness content hubs.
ShareThis created “social topics” from the keywords
and identified 12.5 million consumers in the
ShareThis network based on their sharing behavior
around these topics.
ShareThis divided the 12.5 million consumers into
three groups: 250,000 “influencers” (people who are
more likely to share online content), 2 million
“affected” people (the people who respond to
shared content) and 10 million “potentials” (those
who are likely to share and have characteristics
similar to the “influencers” and the “affected”).
®
Brand Interactions on Social Networks
Empower then targeted a ShareThis display ad campaign
to 2.5 million consumers from within the three groups.
The ad led to a landing page with testimonials and a call
to action referring consumers to the coupon. ShareThis
ran influence-segmented online creative against
identical control creative during the campaign.
“We wanted to see how social behavior would lift
campaign performance and help Mederma connect
with influencers,” said Jim Price, president of
Empower. “We wanted to know whether it could get
even more targeted by going directly to influencers
and how reaching influencers would affect the
performance of display advertising.”
“Our hypothesis is, if Mederma could just reach
people who were talking about these topics at the
time they were sharing their thoughts, or when they
received information that was shared, they should
be more receptive to a display ad tailored to them,”
said Ms. Perry. “We thought if we can get someone to
click to view the coupon download page, that’s a cue
that they will redeem the coupon.”
Results:
After the one-month campaign, Empower found that 50%
of influencers converted to a coupon download page,
compared with 25% for Mederma’s customary search
campaigns, and 10% for its contextual display campaigns
on hubs like WebMD.The people who avidly responded to
the shared content were deemed highly valuable.
Next Steps:
While it’s too soon to assess the coupon redemption
rate, Empower has recommended that Mederma apply
the sharing strategy to another campaign. Ms. Perry said
ShareThis will refine its data model to include a broader
set of sharing signals and Empower will experiment
with the creative next time—running different
executions for influencers and receivers of the shared
content. Based on this pilot campaign, Empower
recommended that Mederma allocate part of its search
budget to ad campaigns targeting sharing behavior.
Key Takeaways:
Marketers that tap into content-sharing on the Web
may find it an effective way to increase engagement
and connect a brand to influencers.
In addition, sharing helps identify influencers who are
topically engaged. Influencers and the people they
share with are valuable—just how valuable is
something ShareThis is working to quantify. The
behavior and influence of content-sharing consumers
can be an effective tool for marketers, serving as a kind
of hybrid of search and display. “It fits somewhere
between social, search and display. It revolves around
a socially driven signal for sharing,” Ms. Perry said.
5
A study by e-mail company StrongMail had a very different
conclusion from the ShareThis study, finding that e-mail was a
much more likely choice than Facebook or other social media
channels for online content-sharing. The study was conducted
using data from direct marketing programs StrongMail conducted
for its clients.
Primary Method Used to Share Online Content Among
Internet Users Worldwide, Q3 2009 (% of total)
According to StrongMail’s study of sharing programs that used its
platform, information shared by e-mail had a 36.8% conversion
rate (for example, purchase or subscriptions), while information
shared via Facebook converted at 3.2%.
Conversion* Rates for Online Content Shared by
Internet Users Worldwide, by Sharing Method, Q3
2009
E-mail 36.8%

E-mail 86% Embedded badges 20.5%

Facebook 6% Personal links 8.9%

Twitter 4% Facebook 3.2%

Personal links 3% Twitter 0.4%

Embedded badges 1% Other 10.1%

Other 1% Note: *purchases, subscriptions, etc.

Source: StrongMail, "Social Influence Benchmark Report," provided to
Note: numbers may not add up to 100% due to rounding eMarketer, December 16, 2009
Source: StrongMail, "Social Influence Benchmark Report," provided to 109711 www.eMarketer.com
eMarketer, December 16, 2009
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109705 Twitter’s conversion rate was just 0.4%.
However, StrongMail said social sharing is growing quickly, and
that information shared in a social environment was far more
“Direct marketers should consider Twitter as
likely to be clicked than information sent via e-mail. “While e-mail
a channel to create buzz and groundswell
may be the most familiar and well-used sharing channel, it
around their brands, but rely on email, blogs
significantly trails newer Web 2.0 social channels when it comes to
extending reach virally,” the StrongMail report said.
and Facebook to drive conversions.”
—StrongMail, in its “Social Influence Benchmark Report,”
Click-Through Rates for Online Content Shared by December 2009
Internet Users Worldwide, by Sharing Method, Q3
2009
For more on how consumers use e-mail and social media,
Twitter 1,837%
see eMarketer’s March 2010 report “Maximizing the
Embedded badges 627% E-Mail/Social Media Connection.”
Personal links 521%

Facebook 223%

E-mail 41%

Other 186%

Note: Read chart as saying that, on average, for every influencer that
"tweets" a brand's offer, 18.37 of their followers click on the tweet to learn
more about the brand and the influencer's experience with it
Source: StrongMail, "Social Influence Benchmark Report," provided to
eMarketer, December 16, 2009
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An important takeaway for marketers is that even though

click-through rates on Twitter and Facebook were higher, content
shared by e-mail had a much higher conversion rate.

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Brand Interactions on Social Networks 6
Social Networks as Research Sources The market research firm Morpace, in a study of retailers and
Facebook, found that 68% of the social network’s users would be
more inclined to make a purchase or visit a retailer after getting a
Public sharing activity is producing billions of referral from a Facebook friend.
insights, attitudes and feelings. But even though
US Facebook Users Who Are More Likely to Buy a
consumers are very inclined to take advice from Product or Visit a Retailer Based on a Positive
Facebook Friend Referral, March 2010 (% of
friends and family about products they are respondents)
interested in, they are not nearly as likely to seek
out their social network friends when they are
researching online. No
32%
Yes
Forrester Research estimated in an April 2010 report that US 68%
consumers generate 256 billion “influence impressions” on social
networks every year, simply by discussing what they read, like or do.

Nearly two-thirds (62%) of these impressions take place on

Facebook, Forrester said. Source: Morpace, "Facebook's Impact on Retailers," provided to eMarketer,
April 1, 2010
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Social Networking Sites Used by US Internet Users to 113959
Create "Influence Impressions," Q4 2009 (% of total) However, in the same study, consumers were asked if they
thought that Facebook was a good tool for researching products.
Other social network Nearly two-thirds (64%) said no.
3%

LinkedIn
Similarly, a December 2009 survey by the Retail Advertising &
6% Marketing Association (RAMA) found that social media users are more
Twitter
10% inclined than average adults to seek and give advice on purchases.

Facebook
MySpace 62% US Social Media Users vs. Average Adults Who Seek
18% and Give Purchase-Related Advice, December 2009 (%
of respondents)
Give advice about purchases
34.7%

Note: n=10,044; numbers may not add up to 100% due to rounding 28.4%
Source: Forrester Research, "Peer Influence Analysis" as cited by
Mashable, April 25, 2010 Seek advice when purchasing

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20.6%
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For additional information on the above chart, see the Social media users Average adults
Endnotes section. Note: ages 18+
Source: Retail Advertising & Marketing Association (RAMA), "Social Media:
An Inside Look at the People Who Use It" conducted by BIGresearch, March
3, 2010
Forrester believes that the people it dubs “mass connectors”
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(those who maintain large social networks) account for just 6.2% 112436
of all online adults but 80% of the so-called influence impressions
on Facebook and other social networks.

But the value of all this influence is still not clear.

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Brand Interactions on Social Networks 7
But when it came to sharing information with others, social media Very few online buyers say they get in touch with their social
users were not all that likely to actually use social media to spread network friends when they begin a search for a branded product,
the word. The RAMA study found that 71.8% of respondents told according to a study by PowerReviews and the e-tailing group.
someone face-to-face about a service, product or brand after While 57% of respondents said search was the resource they used
doing a search, and nearly half (49.7%) communicated the first, only 3% said they sought recommendations from social
information via e-mail. But only 21.6% said they used an online network friends first.
community to share.
Sources Used to Begin a Search for Information on
Ways that US Social Media Users Communicate with Branded Products* According to US Online Buyers**,
Others About a Service, Product or Brand After an March 2010 (% of respondents)
Online Search, December 2009 (% of respondents) I reach out
I like to to my social
Face-to-face research at a network on
71.8% retailer in order Facebook for
to compare a series recommendations
E-mail of brands under one 3%
49.7%
retail umbrella
18% I pose a
question on
Telephone
Twitter
36.5% 2%

Mobile phone
I start with a search
34.7% engine and look for top
search results for
Text messaging products I desire
26.2% 57%

Online communities (e.g., MySpace/Facebook)

21.6% I start with the brand's site because
I believe they will have the most
Instant messaging complete and reliable information
20%
20.4%
Note: *i.e., HP computer, Panasonic TV, Nike shoes; **buy online at least
Blogging four times per year and spend $250+ per year online
Source: PowerReviews and the e-tailing group, "2010 Social Shopping
7.6% Study," provided to eMarketer, May 3, 2010
Note: ages 18+ 115184 www.eMarketer.com
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Source: Retail Advertising & Marketing Association (RAMA), "Social Media:
An Inside Look at the People Who Use It" conducted by BIGresearch, March Moreover, respondents to that survey said that customer reviews
3, 2010
112435
had the greatest effect on their purchase decision; 71% said they had
www.eMarketer.com

112435
a “good” to “significant” impact. But only 31% said friends’ Facebook
wall posts were that influential, and even fewer (25%) found
Facebook company pages to have a good or significant effect.

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Brand Interactions on Social Networks 8
ARAnet, in research conducted in January 2010, found that 59% Four in 10 respondents to a 2009 survey by Lightspeed Research
of Internet users rated personal advice from friends or family as said face-to-face recommendations were influential, followed by
very influential. But only 18% said the same about messages in 34% who were swayed by TV ads. Online recommendations from
social media. friends and family ranked third, at 28%.

Very Influential* Information Sources for Deciding Types of Advertising/Marketing that Influence the
What Goods/Services to Buy According to US Internet Purchase Decisions of US Internet Users,
Users, January 2010 (% of respondents) August-September 2009 (% of respondents)
Personal advice from friends or family members Face-to-face recommendation 41%
59% Television ad 34%
Recommendation online from a contact/friend 28%
TV news or other broadcasts
An e-mail sent to you 26%
40%
A Website created by the brand 25%
Search engines such as Google, Bing, Yahoo! or Ask.com
Direct mail sent to your house 24%
39%
Newspaper ad 14%
Ads I see on TV Magazine ad 13%
36%
Ad in a store 13%
Articles I see in newspapers or magazines Radio ad 11%
33% Newspaper or magazine featuring the brand 11%
Ads I see in newspapers or magazines Film or TV program featuring the brand 8%
31% Online video featuring the brand 6%
Ad on a major Website 5%
Articles I see online
28% Sponsorship of a major event (e.g., sports or music concert) 5%
Sponsored link on a search engine 5%
Radio news or other broadcasts
An online video sponsored by a company or brand 4%
25%
Ad on a social network 3%
Direct mail
Ad in an unusual location (e.g., toilet) 3%
24%
Poster on high street 3%
Ads I hear on the radio Ad on a blog 3%
20% A branded profile or group on a social network 2%
E-mails I receive from retailers or manufacturers Ad in a computer/console game 2%
20% Ad on a mobile phone 2%
Ads I see online Ad on instant messenger 1%
19% Ad in music streaming service 1%
Ad in an online radio service 1%
Messages or posts on social media such as Facebook, Twitter,
LinkedIn or MySpace Source: Lightspeed Research, "Global Web Index," provided to eMarketer,
18% October 16, 2009
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Billboards
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15%

Note: ages 18+; *chose 4 or 5 on a scale where 1="not influential at all"

and 5="very influential"
Source: ARAnet survey conducted by Opinion Research Corporation as
cited in press release, February 18, 2010
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So does this mean that social networks simply don’t work when it
comes to driving purchases or helping consumers make product
decisions? It is a vexing question. Surveys, and logic, will tell you
that the people you know are highly influential when it comes to
making purchase decisions.

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Brand Interactions on Social Networks 9
The same Lightspeed study found that while family members, Despite all the positive influences coming from social networks,
friends and industry experts were the top three trusted sources of why does it appear that people don’t go to them when they are
information, the fourth-ranked source was a good contact on a researching a purchase? There are three possible reasons:
social network. In many cases, people’s social network contacts
■ Information transfer is more subtle in social networks.
are family, friends and business associates.
Many consumer surveys ask how people conduct research.
Trusted Sources Used to Gather Information for Research often implies reading, studying and finding
Purchase Decisions According to US Internet Users, information. Those sorts of activities have long been the domain
August-September 2009 (scale of 1-5*) of search engines, well-oiled machines when it comes to helping
A family member people navigate to valuable research. Information gained via
4.2 social networks is less often the result of a direct search or
A close friend query; it comes as part of the stream of activities and updates
4.1 social network users see whenever they log on.
An expert in the field
■ Social networks provide an incomplete picture. Although
3.8
posing a question to your social network friends (“What are the
A good contact on a social network best condo developments in Kauai?”) may be easier than e-mailing
3.2
or calling them individually, there is a risk that the right friends
A neighbor won’t see the post or won’t have time to respond. So searchers still
3.2 need to conduct research in traditional ways.
The author of a blog you read regularly
2.9 ■ Generational differences. While consumers of all ages say they
trust their friends and family as information resources, young people
A store assistant
2.9
are more inclined to use and trust social network information.

A journalist for a national newspaper RAMA’s study showed that all age groups rank face-to-face
2.5 communications high when it comes to influencing a search but
A TV-news reader that people ages 18 to 34 were more likely to be influenced by
2.5 online communities such as Facebook or MySpace.
A radio presenter
2.4 Factors that Influence US Social Media Users to Start
an Online Search for a Specific Product/Service, by
The main contacts on your microblog (e.g., Twitter) Age, December 2009 (% of respondents)
2.3 18-34 35-54 55+
CEO of a well-known company Cable TV 46.4% 35.7% 26.4%
2.3 Face-to-face communication 43.6% 41.0% 36.6%
A presenter on a popular TV show TV/broadcast 37.8% 44.0% 44.9%
2.2 Radio 32.7% 32.0% 25.9%

Your country's leader/politicians Internet advertising 31.9% 26.7% 22.4%

2.2 Online communities (e.g., MySpace, Facebook) 28.4% 19.2% 15.3%

Blogs 17.6% 8.6% 6.7%
A well-known celebrity
Instant messaging 16.4% 4.7% 2.5%
2.2
Mobile phone 14.4% 4.1% 1.1%
Note: *1="do not trust" and 5="highly trusted" Text messaging 11.6% 3.2% 1.5%
Source: Lightspeed Research, "Global Web Index," provided to eMarketer,
October 16, 2009 Source: Retail Advertising & Marketing Association (RAMA), "Social Media:
107766 www.eMarketer.com
An Inside Look at the People Who Use It" conducted by BIGresearch, March
3, 2010
107766 112434 www.eMarketer.com
112434

®
Brand Interactions on Social Networks 10
There is a generational divide when it comes to sharing methods
as well. While Generation X women were more likely than their
Generation Y peers to use e-mail to communicate with a friend
about brands or products they like, Generation Y females were
more likely to post the information on a social networking site.
Methods Used to Share Information About
Brands/Products They Like* According to US Female
Internet Users, by Generation, September 2009 (% of
respondents)
According to Deloitte, 28% of millennials said that advertising on
social networks was the top influence on their purchase
decisions, more than any other type of online advertising. By
comparison, 18% of Generation X respondents and an even lower
percentage of boomer and mature respondents agreed with that
statement. Although the question was about advertising on social
networks, not personal recommendations, it still showed that
young people were more inclined than others to trust the social
network environment in general.

I call my friends by phone or tell them when I see them

Attitudes of US Internet Users Toward Online Social
78%
Networking, by Generation, October 2009
69 (% of respondents)
I e-mail my friends Millennials Gen X Boomers Matures Total
49% (14-26) (27-43) (44-62) (63-75) (14-75)
37% To me, the main value of social networking sites (Facebook, MySpace,
Twitter, etc.) is they allow me to interact with more friends (more
I review the product on an online shopping site frequently) than I ever would be able "offline"
23% 80% 72% 56% 40% 65%
26%
When I need to connect with my friends, I think that social networking
I post on a social networking site sites (Facebook, MySpace, Twitter, etc.), IM and texting are a good way to
15% satisfy my needs
28% 80% 66% 44% 28% 58%
I discuss the product in online forums The time I spend interacting with friends electronically through IM, texting
6% or social networking sites (Facebook, MySpace, Twitter, etc.) is just
as valuable as time we spend together in person
10%
58% 45% 28% 24% 40%
I don't share that information
10% Advertising on social networking sites influences my buying decisions
more than any type of online advertising
9%
28% 18% 11% 5% 17%
Generation X Generation Y
Note: respondents who "strongly" or "somewhat agree"
Note: *feel passionate about Source: Deloitte, "State of the Media Democracy Fourth Edition: Select U.S.
Source: PopSugar Media, "Why Y Women?" conducted by Radar Research, Highlights," provided to eMarketer, December 15, 2009
October 29, 2009
110112 www.eMarketer.com
108285 www.eMarketer.com 110112
108285 Influencing women on social networks is another challenge.
Although they are more likely than men to use social networks,
they are seemingly underwhelmed by the social networks’ ability
to influence their purchasing behavior.

®
Brand Interactions on Social Networks 11
According to a study of women active in social media, more than
one-half visited social networking sites at least daily. But 74.8%
reported not being influenced by social networks when it came to
their purchase decisions, according to the study, which was
conducted by Q Interactive.
Likewise, a 2010 study by SheSpeaks and iVillage found that the
types of information and promotions presented by brands on sites
like Twitter and Facebook were one of the least powerful purchase
decision influencers for online women. Instead, women were far
more likely to be swayed by consumer reviews or coupons.

US Female Internet Users Who Say that Social Influence of Brand-/Product-Related Online Content
Networking Sites Influence Their Purchase Decisions, on Shopping Behaviors of US Female Internet Users,
August 2009 (% of respondents) April 2010 (% of respondents)

Greatly More likely to look for the product in the store

3.3% More favorable about the product while shopping
More likely to purchase the product in a store
More likely to choose the product/brand over another
Somewhat
Not at all 21.9%
37.1%
Reading consumer reviews about products on community message boards
77% 74% 67% 70%
Not really Finding printable online coupons
37.7%
77% 66% 74% 71%
Reading articles about products on general-interest Websites (i.e., iVillage,
ClubMom)
Source: Q Interactive, "Women's Survey," September 2, 2009 71% 60% 54% 55%
106710 www.eMarketer.com
Reading blog reviews
106710
57% 53% 48% 49%
A little more than one-fifth of respondents said they were
Reading content about products on brand Websites
somewhat influenced, and only a tiny 3.3% reported great influence
72% 51% 54% 52%
on their purchase decisions by social networks. About 15% of
Reading information/promotions from companies/brands on Facebook
respondents to the survey reported not using social networks at all. and Twitter
36% 30% 29% 28%
The female Internet users polled were much more likely to say their
Source: SheSpeaks and iVillage, “Women and the Digital Path to Purchase,”
online purchase decisions were affected by coupons and discounts May 11, 2010
(41.6%), product ratings and review Websites or information searches 115476 www.eMarketer.com
115476
(22.2%) and even online advertisements (9.5%) than by advice from
friends (7.6%) or blog posts and online communities (4%). The latter result—showing the popularity of coupons—is probably
one key reason why so many companies have used a discounting
Leading Influences on Online Purchase Decisions of or couponing strategy as a way to attract consumers to their
US Female Internet Users, August 2009 (% of social media presence.
respondents)
Coupons and discounts
41.6%

Product rating and review Websites/online information searches

22.2%

Online ads
9.5%

Advice from friends

7.6%

Advertising on TV, radio

4.7%

Advice from blog posts, online communities, Websites

4.0%

Advice from an expert (e.g., doctor, author)

0.9%

Other
9.5%

Source: Q Interactive, "Women's Survey," September 2, 2009

106702 www.eMarketer.com
106702

®
Brand Interactions on Social Networks 12
 Do Recommendations Work in Social
Advertising?
Several types of advertising on Facebook
incorporate information from friends. One format
tells users that a friend “likes” a brand or service and
invites them to do the same.
But whether such advertising works has been
unclear. Facebook and Nielsen, in a joint study
conducted in 2010, looked at three types of ads on
the social networking giant: typical ads on the
homepage, ads that incorporated the names of
friends who were brand fans and mentions of the
brand in a friend’s newsfeed.
“If you like Coca-Cola or Diet Coke, and I go to
Facebook and I see an ad for that and I see that you
liked the brand, I’m much more likely to engage with
the creative and the message than I would be if
there were no social actions attached to it,” Mike
Murphy, vice president of global sales at Facebook,
told eMarketer.
Further, earned media exposures continue to have
an effect beyond that of repeated exposure to
traditional display ads. Brand awareness and
purchase intent showed significant lift even after 10
or more impressions.

Ads with “social advocacy” components (those that Community and Social Media Tools US Online
include information about users’ friends) and organic Retailers Employ or Plan to Employ*, Q1 2010 (% of
impressions (brand exposures from newsfeed respondents)
stories sent to friends of users who engage with Facebook fan page 91%
advertising on Facebook) increased recall,
Customer reviews 85%
awareness and purchase intent significantly.
Twitter publishing 80%
For example, Facebook users exposed to both a
Blogs 72%
homepage ad and an organic impression in their
Facebook Connect 71%
newsfeed were three times as likely to remember
the ad and be aware of the brand than viewers of the Social listening tools 60%

homepage ad only. Purchase intent was four times as Questions and answers 51%
great among viewers of any marketing with a social Viral videos 49%
component compared with users exposed to just a
Product suggestion box 40%
traditional ad.
Community forums 36%

Note: *in the next 12 months

Source: the e-tailing group, "9th Annual Merchant Survey," provided to
eMarketer, March 15, 2010
Facebook Ad Effect on Brand Metrics in the US, by Ad
Exposure Type, 2009-2010 (average delta* above 114748 www.eMarketer.com
control) 114478

30%

16%
13%
10%
8% 8% 8%

4%
2%

Ad recall Awareness Purchase intent

Homepage ad exposure Homepage ad + social advocacy
Homepage ad + organic exposure
Note: *delta defined as percent difference in exposed vs. control
Source: The Nielsen Company and Facebook, "Advertising Effectiveness:
Understanding the Value of a Social Media Impression," April 20, 2010
114479 www.eMarketer.com
114479

®
Brand Interactions on Social Networks 13
Why Consumers Make Friends
With Brands
Not so long ago, marketers expressed concern
that social network users would be so focused on
interacting with their friends that they would not
want to pay attention to brands. Judging by the
fact that millions of people have become fans of
major brands on Facebook, and many more will
mention brands in organic conversations on social
Retailers’ heavy involvement in social sites has paid off; a greater
percentage of people follow retail brands on social networks than
any other category, according to Dynamic Logic and Millward Brown.
Consumer packaged goods (CPG) brands ranked second, followed
closely by technology brands. Financial institutions, quick-service
restaurants and automotive companies ranked in the bottom three.
Note that the study had a small sample size of 158 respondents.
Types of Brands Followed by US Social Network Users
Who Follow Companies/Brands on Social Networks,
Q3 2009 (% of respondents)
Retail 71%
CPG 48%

networks, this is definitely no longer the case. Technology 45%

Sports 39%
Yet, as seen above, consumers also still consistently rank social Restaurants 33%
media sites very low when it comes to looking for information
Travel 27%
about products or services.
Banks/finance 23%
These contrasting viewpoints—“I’ll publicly show my allegiance to
Quick-service restaurants 20%
you in social networks, but I probably won’t look for you there
Auto 18%
when I want to make a purchase”—are frustrating for marketers.
How can they move consumers to action in a social environment? Note: n=158 ages 13+
Source: Dynamic Logic and Millward Brown, "AdReaction 2009: Brands +
Consumers + Social Media," provided to eMarketer, January 26, 2010
The brands that have had the most success in driving consumers
111077 www.eMarketer.com
toward a purchase have followed one of two paths: Either they 111077
offer a coupon or a discount, or they have managed to position
themselves in front of a consumer at the right time.

The Facebook company page has become a necessity for most

brands in social media. Retailers are especially active; 91% of
online retailers surveyed by the e-tailing group in early 2010 said
they had or planned to have a page on the popular social network.

Facebook Organic Impression* Effect on Brand

Metrics in the US, by Frequency, 2009-2010 (average
delta** above exposed)

32% 33%

28%

15% 15%
13%
10%
7%
3%

Ad recall Awareness Purchase intent

1-2 3-9 10+
Note: *social stories that appear on the homepage of friends of users who
have engaged with a brand or become a fan of that brand; **delta defined
as percent difference in exposed + organics vs. exposed to homepage ads
only
Source: The Nielsen Company and Facebook, "Advertising Effectiveness:
Understanding the Value of a Social Media Impression," April 20, 2010
114478 www.eMarketer.com
114748

®
Brand Interactions on Social Networks 14
According to the survey from SheSpeaks and iVillage, women According to a February 2010 survey by Chadwick Martin Bailey, a
were most likely to friend or follow brands in the consumer market research firm, 33% of Facebook users have become fans
packaged goods category—particularly food and beverage brands of brands on the network.
and health and beauty brands. In this study, women were less
engaged with retail outlets. US Facebook Users Who Are Fans of Brands on
Facebook, February 2010 (% of respondents)
US Female Internet Users Who Are a Facebook Fan or
Twitter Follower of a Brand/Store, April 2010 (% of
respondents) Do not know
Food/beverage brand
23%
No
36%
45%
Health/beauty brand
32%
Yes
33%
Home/household product brand
25%

Superstore (i.e., Wal-Mart, Target) Note: ages 18+; numbers may not add up to 100% due to rounding
Source: Chadwick Martin Bailey and iModerate Research Technologies as
19% cited in press release, March 10, 2010
Grocery 112905 www.eMarketer.com
112905
18%
Another survey, by Edison Research, found that 16% of social
Drugstore
network users had friended brands there. By contrast, half (51%)
14%
had done so on Twitter.
Club store
6%
US Twitter Users* vs. Social Network Users Who
Other store Follow/Friend Brands or Companies on Social
16% Networks, February 2010 (% of respondents)
Not applicable
49%
Yes
Source: SheSpeaks and iVillage, "Women and the Digital Path to Purchase," 16%
May 11, 2010
115473 www.eMarketer.com
No Yes No
115473
49% 51% 84%
One reason for the different findings between this study and the
one conducted by Dynamic Logic and Millward Brown may be that
in the latter study the retail category was a single choice rather
than broken out into store types.
Twitter users* All social network users
Starbucks and Coca-Cola exemplify the success that retail and Note: ages 12+; *use monthly
CPG brands can have on social networks. Starbucks was the Source: Edison Research, "Twitter Usage In America: 2010," April 29, 2010
114896 www.eMarketer.com
eighth-most popular page on Facebook as of late May 2010, with 114896
more than 7 million fans. Coca-Cola ranked 13th, with nearly “The percentage of Twitter users who follow brands is more than
5.5 million fans, according to Inside Facebook. three times higher than similar behavior expressed by social
Although the value of collecting a large number of fans has been networking users in general. Significant percentages of regular
debated, a base of millions of people translates to millions of Twitter users report using the service not only to seek opinions
potential interactions. about companies, products and services, but to provide those
opinions as well,” the Edison report said.

The divergence between Twitter users and all social network

users may be one reason why Facebook recently changed the
call-to-action wording on its fan pages. Now, instead of clicking to
“become a fan,” members simply click a “like” button. The hope is
that people will find “like” an easier response than “fan” and will
interact with even more brands.

®
Brand Interactions on Social Networks 15
Today, consumers do not connect with all that many brands in
social media. When ForeSee Results asked online shoppers how
many brands they interacted with in social media, the most
common answer, by far, was 1 to 5. The survey included any type of
site where consumers could follow, fan or friend a brand or retailer.
Number of Brands/Retailers that US Online Shoppers*
Interact** with on Social Media Sites, December 2009
(% of respondents)
“Had never been to Einstein Bros. Printed out
the coupon, stood in line at a shop . . . and
they don’t honor the coupon. Guess I won’t
be trying your bagels.” —Einstein Bros. Bagels fan,
in a post on the company’s Facebook Page
Still, coupons represent a very enticing offer for consumers and a
direct path to increased fan count for marketers.

1-5 61% One-quarter of respondents to Chadwick Martin Bailey’s survey

6-10 21% said that coupons and discounts were the primary reason they
11-20 10%
became fans of a brand on Facebook. An additional 21% said it
was because they were already customers.
20+ 8%

Note: *among those who use social media; **follow, friend or fan Primary Reason that US Facebook Users* Are Fans of
Source: ForeSee Results, "2010 Social Media Report," provided to a Brand on Facebook, February 2010 (% of
eMarketer, February 9, 2010
respondents)
111472 www.eMarketer.com
111472 To receive discounts and promotions
Chadwick Martin Bailey, meanwhile, found that 29% of Facebook 25%

users had become fans of four or fewer brands and only 6% had I am a customer of the company
joined the pages of 10 or more brands. 21%

To show others that I like/support this brand

Average Number of Brands US Facebook Users Are 18%
Fans of on Facebook, February 2010 (% of
respondents) It's fun and entertaining
10%
10+ To be the first to know information about the brand
5-9 6%
10% 8%

3-4 Gain access to exclusive content

11% None 6%
55%
Someone recommended it to me
1-2 5%
18%
To be part of a community of like-minded people
4%
Note: ages 18+ I work for/with the company
Source: Chadwick Martin Bailey and iModerate Research Technologies as
cited in press release, March 10, 2010 2%
112906 www.eMarketer.com I own stock in the company
112906
0%

Coupons Drive Brand Interactions None of these

0%
Coupons remain a leading driver of brand interactions in social
Note: ages 18+; numbers may not add up to 100% due to rounding; *who
networks. At the same time, they can be one of the trickiest social are fans of at least one brand
media tactics to pull off. The discount offer must print or download Source: Chadwick Martin Bailey and iModerate Research Technologies as
cited in press release, March 10, 2010
easily and must work as promised. And the retail store or 112907 www.eMarketer.com
distribution channel must be prepared for demand.
112907

The Einstein Bros. Bagels chain offers its Facebook page members
a free bagel and cream cheese if they print a coupon from the
company’s page and bring it into a store. But there have been
glitches, both on the computer (some people reported that their
coupon codes did not print correctly in black ink) and in stores.

®
Brand Interactions on Social Networks 16
Another survey, by Morpace, found that 41% of Facebook users
joined fan pages because they wanted their friends to know what
products they supported. That was greater than the 37% who
wanted to get coupons and discounts. However, respondents
were allowed to choose more than one answer in this study.
Reasons that US Facebook Users Join Fan Pages,
March 2010 (% of respondents)
To let my friends know what products I support
To receive coupons and discount offers
37%
To stay current on available new products
35%
To learn more about the company/organization
31%
To meet with people who have interests similar to mine
28%
Source: Morpace, "Facebook's Impact on Retailers," provided to eMarketer,
April 1, 2010
113957 www.eMarketer.com
113957
Learning about sales and new products is also a strong motivator
for people to interact with companies in social media. Marketers
have used this to their advantage, offering exclusive or early
access to special events or a sneak peek at new products.
MarketingSherpa found that sales and specials were a motivator
for 64% of respondents to its December 2009 survey, while 62%
hoped to get more information on new products.
Reasons for Friending or Following Companies
Through Social Media According to US Consumers,
December 2009 (% of respondents)
Max Daily Total
connectors* users
Learn about specials, sales, etc. 46% 65%
Learn about new products/features/services 61% 61%
Entertainment—funny or insightful 37% 34%
Company culture, environmental 48% 41%
responsibility, workers' policies, etc.
Note: n=1,314; *respondents with more than 500 social connections
Source: MarketingSherpa and Survey Sampling, "Popular Media Study,"
January 12, 2010
110430 www.eMarketer.com
110430
What benefits does becoming a member of a brand’s page carry?
Beyond the tangibles, such as coupons, consumers do gain
positive feelings about a brand as a result of their interactions.
®
Brand Interactions on Social Networks
According to Cone, 74% of people who used “new media” (a term
encompassing social media sites, online games and mobile devices)
said they had a more positive impression of a brand after interacting
with it via those channels, and 72% said they would feel more
connected to a brand if they could interact with it using new media.
Attitudes of US New Media Users Toward
Companies/Brands that They* Are Able to Interact
with via New Media, September 2009 (% of
respondents)
41%
After interacting with companies or brands via new media, I
generally have a more positive impression of the company or
brand
74%
I feel a stronger connection with a company or brand if I can
interact with it in a new media environment
72%
I'm more willing to engage with a company or brand who has a
presence in new media
70%
I feel better served by companies or brands when I can have a
conversation with them in a new media environment
68%
When one of my friends interacts with a company or brand via
new media, it improves my opinion of the company or brand
64%
I choose to "follow"/"friend"/"fan" companies or brands via new
media because they help showcase my personality and interests
online
52%
Note: n=587; new media includes social networks; blogs; microblogs;
online games; mobile devices; photo-, audio- and video-sharing sites; and
message boards; *or their friends
Source: Cone, "2009 Cone Consumer New Media Study," provided to
eMarketer, October 22, 2009
107893 www.eMarketer.com
107893
64%
62%
35%
30%
17
The Murky Waters of Privacy
The number of consumers who willingly interact
with a company within a social network is
growing. And each interaction is a datapoint that
social networks and marketers can gather,
analyze and use for future exchanges.
Then there are the 64.3% of respondents to a Future of Privacy Forum
survey who, in December 2009 survey, agreed or strongly agreed that
consumers had lost control over their personal information. But that
is counteracted by the 26.9% who neither agreed nor disagreed.
US Internet Users Who Believe Consumers Have Lost
Control Over Ways Companies Collect and Use
Personal Information, December 2009 (% of
respondents)
Strongly agree 26.0%

But there are huge privacy implications for those who want to Agree 38.3%

make use of that data. Even if marketers do not get access to Neither agree nor disagree 26.9%
consumers’ personal information when they buy advertising on Disagree 7.1%
social networks, there is plenty they can learn when consumers Strongly disagree 1.7%
join a brand’s page, post a comment on a brand’s wall, download a
Note: n=2,604 ages 18-65
coupon or share branded content with friends. Source: Future of Privacy Forum, "Online Behavioral Advertising 'Icon'
Study," January 25, 2010
In surveys, consumers are conflicted. Some express outrage at 111124 www.eMarketer.com
how their information is used by social networks. Others show 111124

acceptance, perhaps considering that losing some of their privacy Pew Internet & American Life Project found in a study conducted
is a quid pro quo for access to all the features they already love in August and September 2009 that 65% of adult social network
about social networking. And some have no feeling whatsoever. users had ever made changes to their social network privacy
settings. But that left 35% who had not taken such steps.
For example, 31% of North America–based respondents to a
January 2010 survey by InSites Consulting said they had a lot of And, finally, consumers surveyed by VeriSign in December 2009
trust in Facebook’s ability to keep their private information private. showed less concern about using social networking sites than
But 26% said they had little trust in the site, and a wide swath of they did about online banking, bill paying, e-mail, online shopping
users—43 out of 100—had no viewpoint at all. and viewing adult content. Moreover, 54% said they weren’t even
concerned about social networking at all.
Social Networking Site Users Worldwide Who Trust
Facebook with Private Information, by Region, Degree to Which US Adults Are Concerned About
January 2010 (% of respondents) Conducting Select Online Activities, December 2009
Latin America (% of respondents)
36% 27% 37% Extremely Not at all
concerned concerned
North America Online banking 34% 46%
31% 43% 26%
Online bill pay 32% 47%
Eastern Europe E-mail 30% 51%
30% 48% 23% Online shopping/selling 28% 47%
Asia Viewing adult content 25% 58%
26% 63% 11% Social networking sites 23% 54%

Australia Research 21% 58%

26% 48% 27% Gambling/betting 21% 62%

Online dating 21% 63%
Western Europe
Maps and directions 21% 59%
24% 33% 44%
Reading news, weather 19% 61%
Southern Europe
Manage stocks/financial portfolios 19% 59%
20% 33% 47%
Sharing and uploading photos 19% 57%
A lot of trust Neutral Little trust
Make travel reservations/research destinations 18% 58%
Note: numbers may not add up to 100% due to rounding Clicked on advertisements 17% 62%
Source: InSites Consulting, "Social Media Around the World," March 22,
2010 Downloading music 15% 61%
113533 www.eMarketer.com Note: n=6,403 ages 18+; respondents were asked to indicate concern
113533 about conducting each activity even if they had not conducted these
activities online
Source: VeriSign, "Internet Trust Index Report" conducted by TNS, March 4,
2010
113080 www.eMarketer.com
113080

®
Brand Interactions on Social Networks 18
However, privacy concerns are a big barrier to the future growth of
social networks. According to the InSites study, 71% of people who
did not use social networks said the reason was they did not want
others to see their personal information.
Nowhere is the privacy debate more pointed than at Facebook, which
has simultaneously helped consumers become more public than
ever about their lives, likes and dislikes, but also left them confused
over who actually sees their information and what is done with it.
“Facebook has been made the center of
attention around a really important issue of
how technology is changing the conception
of privacy, control and sharing. People are
uneasy about it, but as they start to see the
benefits and advantages of it, they start to
see the value of the experiences.”
—Elliott Schrage, Facebook vice president for public policy,
in The New York Times, May 2010
There is a difference between what consumers willingly reveal
and what they are not aware is public. Webroot, a marketer of
security software, found in a March 2010 survey that 81% of US
and UK users did not put any restrictions on who could see their
recent activity and 77% didn’t restrict their photo albums.
Personal Information that UK & US Social Network
Users Share on Social Networking Sites, March 2010
(% of respondents)
Do not place any restrictions on who can see their recent
activity, including updates generated by geo-location-based tools
that report where their users are visiting
81%
Do not restrict who can access their photo albums
77%
Include their birthday
61%
Include their hometown
52%
Make their mobile phone available
17%

Source: Webroot as cited in press release, March 30, 2010

The respondents to the InSites study rated Facebook well below
113671 www.eMarketer.com
other social networking sites, such as Germany’s XING and the 113671
business-oriented site LinkedIn, when asked how much they There are many instances where consumers may not even be
trusted that the sites guarded their personal information. aware of the specific information they are revealing when they
interact with brands in social environments.
Social Networking Site Users Worldwide Who Trust
Their Social Networks with Private Information, Using the Einstein Bros. example from above, in order to access the
January 2010 (% of respondents)
free bagel offer, Facebook members are instructed to install an
XING application called “Offers.” The installation prompt carries a
45% 38% 18%
warning that reads: “Allowing Offers access will let it pull your
Ning profile information, photos, your friends’ info, and other content
44% 24% 33% that it requires to work”—standard verbiage on many Facebook
LinkedIn applications. The choices are to “allow,” and receive the coupon, or
42% 35% 23% to “leave the application” and be unable to access the coupon.
Hyves Certainly many people would go straight for the coupon without
41% 36% 24% considering the application’s warning. And it is doubtful many
orkut people would disable or block the Offers application after obtaining
41% 21% 39% their coupon. That means that Offers has the ability to access and
Twitter use Facebook users’ information even after they used the coupon.
29% 37% 34%

Facebook
28% 38% 34%
MySpace
25% 45% 30%

hi5
23% 37% 40%

Netlog
21% 35% 44%

A lot of trust Neutral Little trust

Note: n=2,065; numbers may not add up to 100% due to rounding
Source: InSites Consulting, "Social Media Around the World," March 22,
2010
113532 www.eMarketer.com
113532

®
Brand Interactions on Social Networks 19
A Consumer Reports survey of Facebook members and their use
of privacy settings found that less than half (42%) had changed
settings to control who might see their information and only 22%
had taken the time to adjust the information that gets sent to apps.
Privacy Settings of US Adult Facebook Users, January
2010 (% of respondents)
Only shared their Facebook content with friends
73%
Customized settings to control who can see their information
42%
Customized what personal information can be accessed by apps
22%
Customized settings to control who can find my page through a
search
18%
Only shared content with friends and friends of friends
11%
Altered some personally identifiable information to protect their
identity
10%
Source: Consumer Reports National Research Center, "State of the Net
2010," May 4, 2010
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115179
The information that consumers reveal in social networks can be
very compelling for marketers, and it is tempting to take
advantage of it and easy to misuse it. But with so many indications
that consumers are finally, truly interacting with brands, the onus
will be on marketers to take the high road and create positive
experiences for consumers, not ones that will leave them
distrustful and wary.
For more on consumers and online privacy, please see the
eMarketer report “Audience Ad Targeting: Data and
Privacy Issues.”
®
Brand Interactions on Social Networks
Conclusions
Consumers DO interact with brands. More than half of all
Internet users now use social networks, and the percentage of
social network users who talk about companies, either in organic
conversations or on branded company pages, is growing.
Consumers do pay attention and they do value positive
interactions with companies.
Sharing is shifting. Social sharing is the new norm. And social
networks are key places for information transfer to take place.
When it comes to news, consumers are increasingly likely to turn
to their friend network. And when it comes to sharing about
products, social networks allow information to spread quickly.
However, according to at least one survey, e-mail is still tops for
actually converting people to buy.
Social network friends are influential—to a point. People
trust their friends for advice, and they use social networks as part
of their research process. But social networks are long way from
replacing search (if they ever will) as a source of information
leading to a purchase.
Coupons and sales are still key drivers of interaction.
Several surveys agree that one of the primary reasons people join
a branded social network page is for access to deals or coupons.
Brands can effectively use a social couponing strategy to increase
their friend/fan count. But the execution is still tricky, and brands
need to have a strategy in place to keep people interested.
Be honest about how private information is used. The
privacy issue surfaced over and over again, and Facebook has
become the focal point for the discussion. Consumers deserve
easy-to-read social network privacy policies and marketers can
use the ongoing privacy debate to take the high road and be
completely open about their usage of consumer data.
20
Endnotes

Endnote numbers correspond to the unique

six-digit identifier in the lower left corner
of each chart. The charts from the report are
repeated before their respective endnotes.

115222

Social Networking Sites Used by US Internet Users to

Create "Influence Impressions," Q4 2009 (% of total)

Other social network

3%

LinkedIn
6%
Twitter
10%

Facebook
MySpace 62%
18%

Note: n=10,044; numbers may not add up to 100% due to rounding

Source: Forrester Research, "Peer Influence Analysis" as cited by
Mashable, April 25, 2010
115222 www.eMarketer.com
115222

Extended Note: Influence impressions happen on social media

and networking sites such as Twitter, Facebook, MySpace and
LinkedIn by people who know who they are connecting with and
who will read their views on products and services. 256 billion
influence impressions occur per year.

®
Brand Interactions on Social Networks 21
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Brand Interactions on Social Networks 22