Branded Facebook Apps Not Attracting Huge Audiences
According to AdWeek, brands building their own Facebook applications are struggling to stand out among the tens of thousands of other apps, and most — like Nike’s Ballers Network — aren’t racking up impressive install numbers:
“Six months later, Nike is confronting a dilemma familiar to many brands that charged headlong onto Facebook: very few people use Ballers Network. Despite its global ambitions and support in three languages, the application has a mere 3,400 users per month. According to Nike, it’s still testing the application.
“Brands, in general, have found Facebook unforgiving terrain for marketing. It’s well known, for instance, that banner ads perform poorly on the site. (A recent IDC report called advertising on social networks ’stillborn.’) But the Facebook Platform, launched 18 months ago — which lets developers create social applications for users — was thought to offer the perfect opportunity to move beyond banners to provide ‘branded utility.’ So far, however, Facebook apps from brands like Coca-Cola, Champion, Ford and Microsoft are as popular as desolate Second Life islands.”
But to call advertising on social networks “stillborn” ignores many programs where brands successful partner with applications like Graffiti, such as Acuvue
, BMW, and Intel, among others.
And it’s a reckless point of view. Facebook is deeply engaged with tens of millions of your customers. Deeply engaged with them. Sure, the marketing models and formats aren’t yet perfect. But taking your ball and going home just isn’t an option.
UPDATE: iMedia is out with its Predictions for 2009 report, in which they asked me for my take. One question is relevant to the above. They asked, “In what news ways will marketers use social networks?” My comment:
“They’ll stop looking at Facebook or MySpace as coherent media ‘things.’ Instead, they’ll view social networks as platforms — like multiple-system operators (MSOs) in cable TV — and work harder to find the communities — the ‘media properties’ — on top of those platforms.”
Nice post Chas. It’s getting a little frustrating reading all of the “social media advertising is dead” posts from the traditional media naysayers. Graffiti is doing some great things, and at Watercooler we’re positioned for some nice wins as well. The key hurdle is getting big brands to realize that they have to change their decision criteria as well as the metrics used for measurement. We’ll get there.
Bryan–I was chatting with your colleague Walter today. We have some big stuff cooking. I’ve got to believe we’ll have some case study fodder to share after the Superbowl! Thanks for the comment.