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Facebook and the ideal social marketplace: a study of the marketing benefits of social media practices

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Facebook and the ideal social marketplace: a study of the marketing benefits of social media practices

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FACEBOOK AND THE IDEAL SOCIAL MARKETPLACE:

A STUDY OF THE MARKETING BENEFITS OF SOCIAL MEDIA PRACTICES

by

Saffronia Renee Threatt

A Thesis Presented to the
FACULTY OF THE GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Fulfillment of the
Requirements for the Degree
MASTER OF ARTS
(STRATEGIC PUBLIC RELATIONS)

August 2009

Copyright 2009 Saffronia Renee Threatt

ii

Dedication

I would like to dedicate this thesis to those who have helped and supported me
through the many months it has taken to complete this product, as well as those who
stood by me throughout the completion of my Master’s degree at USC.
To my parents and close friends who listened to my joyous or stressful
commentary, who completed my surveys, who connected me with interviews and who,
most importantly, always gave me positive support and advice.
To my professors and administrators at USC who taught me what I needed to
know to complete this degree and this thesis!
Finally, a big thank you to my thesis committee: Jennifer Floto, Jerry Swerling
and Matthew Le Veque, all of whom applied so much of their time for my benefit.

iii

Table of Contents

Dedication ii

List of Figures iv

Abstract v

Introduction 1

Chapter 1: Literature Review 8

Chapter 2: Case Study Analysis 18

Chapter 3: Facebook Analysis 29

Chapter 4: Results and Recommendations: Ideal Social Marketplace 41

Conclusion 58

Bibliography 61

Appendix: Social Marketplace Online Survey Questions 66

iv

List of Figures

Figure 1: Global Snapshot 10

Figure 2: Facebook vs. MySpace Unique Visitors 30

Figures 3 - 5: Social Marketplace Survey Demographics 42

Figure 6: Social Marketplace Survey – Preferred Online Marketing Strategies 47

Figure 7: Social Marketplace Survey – Effectiveness of Facebook Features 53

v

Abstract

This thesis was written with the intent of discovering future trends in new media
and social networking. I have taken a personal interest in the developments of Web 2.0
platforms after noticing the impact they have made on society on a global scale as well as
in my own daily life. The advances in this technology have altered the way individual
users and organizations can communicate with each other.
In my opinion, this topic needed to be explored, especially with the state of the
U.S. economy in 2009, to better assess how marketing and communication teams can
connect with mass or niche audiences found in online environments. Through extensive
research and analysis, I intended to find the ideal social media outlet where marketers can
reach and influence targeted consumers. The results are not only necessary to enter into
the digital environment but also to remain a part of the advancing society as a whole.
1

Introduction

Since the emergence of the Internet in the late 20
th
century, communication
among individuals and organizations of all types has changed dramatically. Suddenly
audiences and content generators all over the world became connected at all hours of the
day through the World Wide Web, a collection of hypertext sites available to users
connected to its host network called the Internet. The possibilities of the Web
transcended such “traditional” channels as telephones, pagers, televisions, radios and
newspapers. This novel form of technology allowed the creation of new communities
and instantaneous, or high-speed, communication. It was exploited by users for personal
hobbies, research, entrepreneurial endeavors, business operations, news delivery,
entertainment and more.
In the last 10 years alone, the increase in reliability and availability of the internet
has significantly altered how people of all ages and occupations have used it. Online
communities and forums began to form almost as soon as the Web was born, with themed
chat rooms, message boards, and mass email or fan groups established on such website
platforms as Yahoo! and AOL. As high speed broadband access replaced the much
slower dial-up and increasing numbers of users have gone online, these communities
have evolved and transitioned into multiple types, each appealing to users with specific
interests. In addition to chat rooms and instant messaging, users started keeping online
journals, or weblogs; participating in interactive games; as well as posting pictures and
videos to personal or public sites with such capabilities. Today, 73% of active internet
users have posted pictures onto various online platforms, according to the survey
2

conducted for this thesis. Discussion boards were added to numerous websites which
allowed feedback on products and ideas from actual users. Social networks also
emerged, allowing users to stay connected with others in a marginally easier and faster
magnitude. The onslaught of new technology and profound ways of using this
technology online was coined as the emergence of “Web 2.0.” Technology expert and
founder of O’Reilly Media, Inc., Tim O’Reilly, defines Web 2.0 as an era in which the
Internet involves users as developers; rich software, and new business models.
1
Some
would argue that developed nations are now in the Web 3.0 phase as the Internet
continues to evolve and expand with added multimedia.
Prior to the broad scale introduction and availability of the internet to the public,
traditional forms of marketing (public relations, advertising, branding and messaging)
were channeled through slower mediums. The internet, however, has allowed both
organizations and individuals to post content, and react to each other’s content, creating a
matrix of multi-directional communication rather than the one-way messages consumers
received in the past. In this way, the internet provides an intricate web of audiences to
filter through before delivering effective messaging.
Early attempts at online marketing often took the form of spamming (sending
unwarranted messages out to mass audiences) as well as unsophisticated attempts at
online advertising. Today,
2
there are myriad ways in which communication professionals
can, and are, connecting with their key audiences. The challenge is in creating the ideal

1
O’Reilly, Tim. “What Is Web 2.0.” O’Reilly Net.
http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html. 30 Sept 2005.

2
“Today” herein refers to the time period at which this thesis was written: January – March 2009.
3

online atmosphere in which these audiences will be responsive and build the kinds of
relationships that will lead to the achievement of communication or business objectives.
However, because billions of people access the internet every day (about 1.6 billion as of
March 2009
3
), businesses must be cautious and aware that on the internet, a little
information – or a lot of information - can go a very long way and still have little or no
effect.
Search engines serve as a tool for users to find a collection of websites with
content related to inputted keywords. They have transcended into web portals, creating a
connection from one central site to millions of sites across the Internet. Search engines
such as Google, Yahoo!, and Microsoft Live Search allow web users to reach and create
almost anything that fits their needs. Countless pieces of information and multimedia are
available to download for free and one user can get in touch with another across the globe
instantaneously.
YouTube, a four-year-old video streaming site
4
, is the premier destination for
users to upload and share original and recycled video content. It is also one of the largest
growing examples of this phenomenon. According to comScore in 2008,
In November, 146 million Americans watched videos online, streaming a total of
12.6 billion video clips, or nearly double the number they streamed just 20
months ago. YouTube itself has grown even faster. Its share of videos streamed
soared to 40 percent in November from 17 percent in March 2007. And now
YouTube… has become a bona fide search tool. Searches on it in the United
States recently edged out those on Yahoo, which had long been the No. 2 search
engine, behind Google. (Google, incidentally, owns YouTube.) In November,

3
“Internet Usage Statistics.” Internet World Stats. http://www.internetworldstats.com/stats.htm.

4
“Company History.” YouTube. http://www.youtube.com/t/about.
4

Americans conducted nearly 2.8 billion searches on YouTube, about 200 million
more than on Yahoo.
5

As of March 2008, the length of time it would take to view all the content on YouTube
totaled 412.3 years.
6
In January 2009, comScore reported that 14.8 billion videos were
viewed in this month alone.
7
The magnitude of these data indicates that there exists a
Web community of tremendous growth constantly participating in interactive multimedia
activities, in addition to searching for the same or similar experiences through these
online portals.
Online communities in which users convene for casual, personal or professional
interaction are also known as social networks (some of which include a collaboration of
users all over the world). These sites differ by genre, and some by region. For example,
the number of social network users in the Middle East increased 66% from June 2007 to
June 2008.
8
As of March 2008, there were 300 million users in China alone on QQ.com,
20 million in South Korea on Cyworld and 14 million on Mixi in Japan while Facebook
had only 60 million users worldwide.
9
MySpace and Facebook, now both hosts to more
than 150 million active users, connect people by giving them an efficient way of
communicating through appropriate and legal means. LinkedIn, however, serves purely

5
Helft, Miguel. “At First, Funny Videos. Now A Reference Tool.” The New York Times.
http://www.nytimes.com/2009/01/18/business/media/18ping.html?_r=1. 17 Jan 2009.

6
Singer, Adam. “49 Amazing Social Media, Web 2.0 And Internet Stats.” The Future Buzz.
http://thefuturebuzz.com/2009/01/12/social-media-web-20-internet-numbers-stats/. 12 Jan 2009.

7
“YouTube Reaches 100 Million U.S. Viewers.” http://youtubereport2009.com/youtube-reache-100-
million-us-viewers/. 5 Mar 2009.

8
Lipsman, Andrew. “Social Networking Explodes Worldwide as Sites Increase Their Focus on Cultural
Relevance.” comScore, Inc. http://www.comscore.com/press/release.asp?press=2396. 12 Aug 2008.

9
MacManus, Richard. “Facebook vs. Asia’s Top Social Networks.” ReadWriteWeb.
http://www.readwriteweb.com/archives/facebook_vs_asia_top_social_networks.php. 30 Mar 2008.
5

as a site for professional networking. Club and group organizations will often create
social networking features as well, in order to connect users within that organization or
bring together an amalgam of random users with similar interests.
Social networks are not only available through the internet on personal computers
but are becoming accessible from cellular phones and public internet sites (e.g., airports,
schools) as well. According to Wireless Week, social networking applications are
increasingly driving the growth of the mobile internet audience, especially among
women.
10
eMarketer forecasts that more than 800 million people worldwide will be
participating in a social network via their mobile phones by 2012, up from 82 million in
2007
11
; and the number of mobile social networking users will grow to 243 million in
2009 from 147 million in 2008.
12
This increased availability of the Web to its users
allows organizations more chances to reach these audiences.
The types of social networks vary, but some of the largest (primarily Facebook)
will be the focus of this thesis examination. Facebook provides numerous uses to fulfill
the needs of its consumer users, and functions much like an online social media portal.
Because millions use Facebook’s services, organizations of all types have flocked to the
site as well, opening corporate accounts and creating profiles to reach users. Even though
it is five years old – an eon in Internet site time – Facebook’s reach is constantly
increasing. It began as a network for a limited number of U.S. university students and

10
Smith, Justin. “Facebook: Telecoms’ New Best Friend?” Inside Facebook.
http://www.insidefacebook.com/2009/02/24/facebook-telecoms-new-best-friend/. 24 Feb 2009.

11
Du Pre Gauntt, John. “Mobile Social Networks.” eMarketer.
http://www.emarketer.com/Report.aspx?code=emarketer_2000489. May 2008.

12
Smith, Justin. “Facebook: Telecoms’ New Best Friend?” Inside Facebook.
http://www.insidefacebook.com/2009/02/24/facebook-telecoms-new-best-friend/. 24 Feb 2009.
6

now, accessible to users of any age, 70% of its registered users are located outside the
United States.
13

Despite this phenomenal growth, the author questions if it is a viable channel for
organizations seeking to reach their audiences. According to a recent survey conducted
by the USC Annenberg Strategic Communication and Public Relations Center, social
networks are currently not the most credible or popular media channel but they are a very
large, growing source
14
that can be capitalized on if used efficiently.
Through the course of this paper, the author will examine four main areas to
determine Facebook’s ability to serve as the most viable marketing platform for
businesses. First, I will analyze the research, suggestions and theories of industry experts
and literature. These ideas will help to shape the evidence for an ideal social media
marketing site.
Second, I will analyze what businesses and organizations are doing online to
market to audiences right now. That is, I will look into specific strategies that are most
utilized today to improve an organization’s reputation or branding; or to sell a product,
service or idea. The strategies outlined in two case studies will be analyzed specifically
in relation to their use of social networks and websites where consumer-generated media
is prevalent.

13
“Press Room.” http://www.facebook.com/press/info.php?statistics. 20 May 2009.

14
USC Annenberg Strategic Communication and Public Relations Center. “Media Myths and Realities:
2008 Media Usage Survey.” 11 Nov 2008.
7

Third, I will gauge the effectiveness of an organization’s presence on Facebook in
particular. What are they really getting out of it? What does the average Facebook user
actually think about its presence on that platform?
Finally, I will suggest how organizations can create an ideal “social marketplace.”
That is, what the best online venue is for marketing communications with consumers who
actively participate in social networks and other forms of social media. This includes
consumers of all demographics but targeted to those who are currently active online or
intend to become more active in the next 5-10 years. Based on user responses and
research analysis, these recommendations will serve as a guide for how organizations can
best remedy their current operations and proceed for the future.

8

Chapter 1: Literature Review
It can be argued that the acceleration of mainstream Web 2.0 platforms began in
either 2005 with the creation of YouTube or in 2006
15
when Google purchased YouTube,
but either indicates that the information about social media marketing in Web 2.0 is fairly
recent and constantly being updated. Additionally, because the internet is such a vast
space, it opens the opportunity for myriad experts within the corporate world, literature
and blogs. Given that some are more authoritative than others, the views and theories of
some of these experts make up a foundation for the ideal social marketplace.
The materials reviewed for this thesis include the books The New Rules of
Marketing and PR by David Meerman Scott, Steven Holzner’s Facebook Marketing:
Leveraging Social Media to Grow Your Business and Larry Weber’s Marketing to the
Social Web. Blog and industry experts such as Justin Smith of InsideFacebook.com and
social media writers and influencers of the websites and blogs Mashable, TechCrunch,
CNet, Technorati, New York Times, Brandweek and Advertising Age also were reviewed.
Finally, the March 2008 research of Universal McCann was utilized for its social media
results. It is the third of the media giant’s global internet surveys. It received feedback
from participants ages 16-54 in 29 countries, of which 17,000 were active internet users.
In this case, “active” was defined as using the internet at least once per day
16
.

15
O’Reilly, Tim. “What Is Web 2.0.” O’Reilly Net.
http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html. 30 Sept 2005.

16
“Universal McCann International Social Media Research Wave 3.”
http://www.slideshare.net/mickstravellin/universal-mccann-international-social-media-research-wave-3.
Mar 2008.
9

The Demand for Social Media Marketing
The first observation drawn from the literature review was that social media offer
great marketing potential. For example, Universal McCann’s survey showed that 57% of
active Internet users belong to a social network, making it the premier platform for
creating and sharing content. This creates potential for organizations that can find a way
to get involved in this content. Further data indicates that several other factions of Web
2.0 are also universally important at the same time:
• 36% of internet users think more positively of companies with blogs
• Personal blogs are the #1 visited sites, followed by sites for music, TV, film and
news
• Of 31 countries, the U.S. ranks 27
th
in number of users ever to read a blog
(60.3%); South Korea is ranked #1 at 92.1%
• 32% of internet users trust bloggers’ opinions on products and services
• China is the biggest podcast market with 74% use
• Podcast use has increased from 21% to 49% since Universal McCann’s Wave 2
research in June 2007

10

Figure 1: Global Snapshot

These facts show that multiple forms of social media are already consumed each day all
over the world. This creates countless opportunities for organizations to reach target
markets through different social mediums in different environments. Weber argues that,
given the trends now underway in social media, organizations of virtually all sizes and
types already have, or will soon have, the opportunity to effectively reach their audiences
by means of this wholly new channel. “The next generation of consumer social networks
will have much smaller, far more focused networks – which helps the midsize and small
11

marketer as well as the biggest enterprises.” (Weber 199)
17
This means that niche
communities are forming in attempt to suit any user’s interest. The largest corporation or
even the independent entrepreneur can assess online communities to determine what are
the best avenues to find consumers, whether it may be blogging in South Korea or
creating podcasts in China.
Entering into the digital media space is tricky for marketers because of the users’
ability to participate or not. Holzner’s argument - that “the marketing channel is reversed
– rather than top-down, things now move from bottom up” – is the basis for his theory
that social media is controlled by users (Holzner 1).
18
The social media marketing
channel then, according to Holzner, poses the challenge of meeting the threshold
demands of consumers seeking specific types of information and/or interaction involved
in social media. To do so involves in depth research and interaction with the community
wherein the target audience virtually resides, and the ability to give them what they need.
Scott concurs; he states that “the Web is different… Web marketing is about delivering
useful content at just the precise moment that a buyer needs it.” (Scott 7)
19

In many cases, organizations see this as the opportunity to convey messages about
a service or product when and where consumers are intending to make a purchase, such
as on shopping websites. However, Scott’s view extends past purchasing into decision
making or even changing behaviors. In a niche social network such as OpenBottles for

17
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 199.

18
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 1.

19
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007. 7.
12

wine enthusiasts, representatives from organizations within the wine industry can read
and respond to discussions or provide offers based on the opinions of users. In a large,
non-niche social network like Facebook, an organization may have a profile on a page in
which representatives from that organization can control content. Representatives from
the organization can then actively become part of the conversation and provide
information in the form of video, photo, blog entries and more.
Facebook in itself has created a demand for social media marketing. Freelance
public relations consultant Gary Miereanu stated in an academic lecture that just within
the sports industry, he had received more job offers through Facebook than any other
medium because of the ability one has to network on the site. He went on to say “social
networks are amazing… nothing is the way it used to be;”
20
the amount of people online
and in social networks such as Facebook is mutually beneficial for marketers and
consumers. “As Facebook grows, so will the immediacy of the demand it places on
marketers: to do what many have shied away from or outright avoided doing: focus not
just on product benefits, but on "interaction benefits"—if I choose to engage with your
message (be it a Facebook widget or a product integration or a viral video), what's in it
for me?”
21
Maria Popova of Brandweek warns marketers that while social media sites
such as Facebook create a demand for marketers, there is more so a demand for
communication.

20
Gary Miereanu Lecture. University of Southern California. Journalism 454. 3 Mar 2009.

21
Popova, Maria. “Poke Me, It’s Real: Facebook, Interaction Benefits and the Future of Marketing.”
Brandweek. 23 Oct 2007.
13

The Need for Community Building
Community building involving organizations and their stakeholders is another
essential element of social media marketing, according to experts. Weber states,
“community building – with communities focusing on a specific common interest – is
one of the fastest growing applications on the Web.” (Weber 12)
22
This is consistent with
other literature in not only saying that communities (social networks) are growing but
that niche and/or focused networks are an important contributor to that growth. This
makes it easier for the marketer to find an existing, or begin to form his own, online
community.
Weber goes on to state that once an organization or enters a community, it must
generate trust among the users. Because social media marketing is bottom-up, as Holzner
says, the focus is more on relating to the consumers rather than simply getting the story
out. According to Weber, this requires transparency that will, in turn, build credibility.
(Weber 32)
23
An organization can start doing this just through the content and design of
its own website or blog. For example, General Motors created a site (GMnext.com)
revolving around the future of the company and its fuel efficiency efforts. It is separate
from the main corporate website but features essential company information as well as
several social media applications. Its “Fast Lane” blog covers environmental topics,
features of new GM vehicles and video updates from the CEO regarding the company’s
economic condition.

22
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 12.

23
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 32.
14

Another section of the site, GM Facts and Fiction, features seeks to correct
rumors and misstatements, while the GMnext wiki and FYI blog give site visitors the
opportunity to get involved and share their own news or views on GM vehicles or
initiatives. Finally, there are highly visible links to GM.com as well as the company’s
Twitter, YouTube and Flickr pages.
All of these elements together provide transparency to GM’s audiences, including
current and potential customers, dealers, shareholders, and others who are following the
company in the news. In 2009, GM not only used this site to create interest in its
products and future ideas for environmentally friendly vehicles, but also to spread its
messages on the security of the company. Both of these are social media strategies put
forth by GM.
In order to truly gain the attention of target audiences, however, marketers must
aggregate customers through both their own corporate website as well as participation in
“the public arena.” (Weber 13-14)
24
All organizations must exercise caution when doing
this because of the vastness of the Web and risk in creating conversation. Not only are
they subject to scrutiny by their own target audiences but also by any other groups or
individuals that may be part of the same network. The “word of mouse” concept
illustrates how “word of mouth” is translated on the Web: a high-speed information
download spread among millions with just a few clicks of a computer mouse. One user
sending a link to ten friends at once can lead to that same link eventually spreading to
thousands or millions of viewers in minutes or hours. The power of the internet is fast

24
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 13-14.
15

paced and, for the most part, uncontrollable. Word of mouse is the source of a challenge
cited by Weber: “in the social media world, you have little to no control over content and
distribution… It’s highly democratic: everyone has access and everyone can participate.”
(Weber 27)
25
Still, if done carefully, organizations can establish relationships with more
(and perhaps unexpected) consumers through such social media channels than is possible
through traditional media.

The Social Media Strategy
Internet users involved in social media are able to reach any other user at any time
of day if the network is large enough. Because of this, users become comfortable with
those in the community of their choosing and often substitute traditional forms of
communication with communication via an online medium. Clive Thompson of The New
York Times comments on this phenomenon:
Social scientists have a name for this sort of incessant online contact. They call it
“ambient awareness.” It is, they say, very much like being physically near
someone and picking up on his mood through the little things he does — body
language, sighs, stray comments — out of the corner of your eye. Facebook is no
longer alone in offering this sort of interaction online. In the last year, there has
been a boom in tools for ‘microblogging’: posting frequent tiny updates on what
you’re doing.
26

From social network giant Facebook to microblogging site Twitter, instruments for social
media allow users to create tight-knit relationships in entirely new ways. It is how the

25
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 27.

26
Thompson, Clive. “Brave New World of Digital Intimacy.” The New York Times. 5 Sept 2008.
16

marketer or organization creates relationships with these users that is key to the social
media marketing strategy.
Complementing Weber’s social media recommendation of appearing transparent
to consumers, Smith notes that organizations must be genuine and personable. “Justin
Smith, editor InsideFacebook.com, [suggests,] ‘Be as authentic in your marketing as
possible. Inside social networks, trusted referrals are the most powerful marketing
message… This is the main value add of marketing in social networks – the social graph
is available to you.’” (Holzner 8)
27
This indicates that while the organization or marketer
must be involved in the conversation and create relationships, it must also leave room for
the consumers to communicate with each other – the main purpose of social networks and
other social media platforms. Too much involvement by an organization can turn out to
be overwhelming for the audience and not seem genuine. “People don’t want to be sold.
They are doing their best to avoid commercials. They have pop-up blockers to screen out
the ads on the Web that are a distraction.” (Weber 11)
28

Organizations have numerous options for interacting with consumers in social
media environments, ranging from discussion forums and podcasts, to photographs and
blogs. One medium organizations often incorporate is video. A January 2009 New York
Times article reported on the use of video sites such as YouTube as search engines. “All
of us who are a certain age think of video as a medium associated with television, and not
as a reference,” Mr. Kennedy [product manager at Nokia] said. “It’s another method of

27
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 9.

28
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 11.

17

search that we don’t fully appreciate.”
29
YouTube in particular, owned by search expert
Google, features a comprehensive search engine that organizations can take advantage of
with search engine optimization. This means that an organization can utilize key words
in its own sites or for purchase through Google to improve how prevalent it is displayed
within search results.
A company that is experimenting with navigating through social media to reach
consumers is M&M/Mars, through its Skittles brand. The skittles.com homepage
displays the brand’s Wikipedia page, which contains a collection of company history and
information on new or featured flavors. The navigation box for the site sits in the top left
corner of the screen and includes links to Skittles’ YouTube page, Flickr account, Twitter
feed and Facebook page. The 2009 redesign of the website has shown the brand’s
commitment to current trends and the preferences of its target audiences. It has likely
stimulated increased communication about Skittles products and the brand through the
different social media sites, though specific data could not be found at the time this was
written.
In the age of Web 2.0 and moving forward into the inevitable Web 3.0, interest in
and demand for social media marketing will remain. As long as users are accessing
content or even other users via social channels, organizations will have the opportunity to
become a part of the communities that result, whether it is through personal computer,
laptop or mobile devices. According to industry experts, these organizations must be
transparent and personable when building communities in order to be successful.

29
Helft, Miguel. “At First, Funny Videos. Now A Reference Tool.” The New York Times.
http://www.nytimes.com/2009/01/18/business/media/18ping.html?_r=1. 17 Jan 2009.
18

Chapter 2: Case Study Analysis
The difficult part about entering the social media world is that, for many users, it
serves as a personal environment where messages from third parties – especially
marketers - may not be welcomed. Organizations are required to seem inviting instead of
imposing, and find a way to market to the consumer without blatantly selling themselves.
This is true of all information received through digital media such as cell phones, video
games, mp3 players and the internet. In a recent U.S. survey by the University of
Southern California Annenberg Strategic Communication and Public Relations Center,
results showed that consumers preferred social networks and blogs the least when making
important decisions regarding healthcare, buying stock and healthy food choices or
products.
30
While this may seem obvious, executives in these industries are continuing to
seek ways to include social networks and blogs among their consumer outreach
strategies. Some may even argue that few industries should spend time and resources
marketing on the internet. In a globalized world where enormous populations have web
access and so much of what consumers use every day is digital, however, it seems ill-
advised for a business in any industry to avoid it.
For some companies that do engage in social network marketing, there still exists
a gap between consumer preferences and professional practices.
31
In the cases outlined
below, it is clear that while one company (HBO) successfully aligns its strategies with the

30
USC Annenberg Strategic Communication and Public Relations Center. “Media Myths and Realities:
2008 Media Usage Survey.” 11 Nov 2008.

31
USC Annenberg Strategic Communication and Public Relations Center. “Media Myths and Realities:
2008 Media Usage Survey.” 11 Nov 2008.
19

desires of its target consumers, the other (American Airlines) shows a lack of sensitivity
to its consumers’ needs. Both are of international caliber in very different industries.

Case: HBO Markets Season 5 of “Entourage”
History of HBO:
Home Box Office (known as HBO) began as a small local television station in
Pennsylvania in 1972 under parent company Time Life Inc. (now Time Warner Inc after
a 1989 merger.) It had a sports focus and was a channel for subscribers only. In its first
year, HBO had only 365 local subscribers but with the use of emerging satellite
technology, the channel became available to thousands by 1975. It was the first channel
to broadcast regular programming via satellite.
By the early 1980s, cable television created successful competitors for HBO,
including The Movie Channel (TMC) and Showtime, which had exclusive deals with
Paramount Pictures to air its films on television. In turn, HBO formed a partnership with
Columbia Pictures and CBS to create its own motion picture company titled TriStar.
This turning point, in 1983, shifted HBO’s focus from sports to film and entertainment
programming. Further, in 1990, HBO Independent Productions was formed with the
purpose of creating exclusive television shows for the channel and its counterparts
32
.
HBO has since produced several award-winning shows including “The Sopranos,” “Sex
and the City,” “The Wire” and, more recently, “John Adams.” To support these shows
and other programming among multiple audiences, more HBO channels were developed
to broadcast family, comedy and even Latino-themed films. Since 2006, HBO has also

32
“History of HBO.” http://answers.google.com/answers/threadview?id=304971.
20

added video mobile features, podcasts and exclusive music. In 2008 and early this year,
HBO began streaming some of its content online and through on-demand television to its
subscribers as well as for purchase through iTunes. It is currently in the process of
creating a streaming application similar to Hulu – a video streaming site owned by
multiple television networks to legally share broadcasted content - that will also allow
viewers to download content to their computers.
33
The history of HBO alone has proven
the company to be a worldwide leader in technology, media and entertainment
programming.
Another of HBO’s most successful television programs is the half-hour dramedy
(drama/comedy combination), “Entourage.” The actors involved and the show itself have
won three Emmys, one Golden Globe and several other awards since its debut in 2004.
The premise follows the life of an actor, his agent, and his three best friends (the
“entourage”) living in Hollywood. The plots from each episode are very realistic to the
entertainment industry and pop culture lifestyle in Hollywood. Because of this, fans of
the show all over the world have tracked the filming locations, most of which are actual
destinations in Los Angeles, Las Vegas and New York.

Industry Overview:
HBO is a large provider within the broadcast entertainment industry, specifically
in cable television. Because of the diversity in programming and other branches of the
company, however, it is also a part of digital media, film and sports. Its programming

33
Ostrow, Adam. “HBO Coming to A Computer Near You.” Mashable: The Social Media Guide.
http://mashable.com/2008/01/21/hbo-on-broadband/. 21 Jan 2009.
21

consists primarily of exclusive, partnered studio motion pictures, documentaries, sports
specials, stand-up comedy tours, concerts and more. HBO’s online and cable on-demand
presence also contributes to its role within these industries.

Competitive Analysis:
The organization’s competition is quite vast among the aforementioned industries.
HBO faces direct competition from other cable channels that primarily broadcast movies
or original content, such as Showtime, TMC, Cinemax, Starz, Independent Film Channel
and American Movie Classics. It also, however, competes with all other television
stations, both cable and network, that may divert the attention of HBO’s target audiences.
This is not only because other stations offer different content but also because watching
HBO requires the consumer to subscribe to the channel for a premium price above that of
basic cable.
Additionally, HBO is in competition with online video streaming sites that
primarily broadcast films and television programming. However, it also competes with
sites featuring user-generated video content, sites featuring commentary on content
similar to that of HBO, and video rental organizations such as Blockbuster and Netflix.
The websites include video streaming applications on networks’ sites such as ABC or
NBC, Hulu, user-generated YouTube, and videos featured on the Internet Movie
Database (IMDB.com).
Finally, HBO competes with other leisure activities, including, gaming, cooking,
reading and the like, that pose alternatives to watching HBO.
22

Social Media Opportunity:
In the fall of 2008, executives at HBO prepared for the premiere of the fifth
season of the hit series “Entourage.” HBO had previously connected with fans of
“Entourage” through character blogs, a Facebook page and MySpace page. The creative
opportunity was open to get fans reacquainted with the characters and storyline, attract
new viewers and gain or renew HBO subscribers.

Social Media Execution and Analysis:
To reach a wider spectrum of audiences, the HBO team attempted to build on its
fairly solid fan base (averaging two million viewers per episode)
34
and target new
viewers through social media.
Tying in with the season premiere of “Entourage,” HBO teamed up with Whrrl, a
social networking site in which users map out their favorite local destinations for food,
shopping, music, medical appointments, etc. Users can also connect to friends on the site
to see each others’ frequently visited spots, leave commentary and more. An account for
HBO was created on Whrrl that featured each of the five main “Entourage” characters
and the locations in Hollywood each had visited in previous seasons, or would be
featured in upcoming episodes. Whrrl users were permitted to become “friends” with any
or all of the characters and compare/contrast the hotspots they had in common with the

34
“HBO’s ‘Entourage’ Slips in Season Premiere as ‘True Blood’ Betters Time Slot Rating.” TV Week.
http://www.tvweek.com/blogs/ratings-chart-attack/2008/09/hbos_entourage_slips_in_season.php. 9 Sept
2008.
23

characters
35
. This not only garnered interest in the show, but also engaged existing HBO
fans or potential fans.
HBO also partnered with Virgin America for a strategic bi-launch. While
executives from HBO wanted to promote the premiere of their hit show’s new season, the
team at Virgin America needed to do the same for its new non-stop service between New
York and Las Vegas. To do so, the two organizations created “Entourage Air.” The
inaugural flight between John F. Kennedy International Airport in New York and Las
Vegas McCarran International Airport took off on September 7, 2008 and catered to the
Hollywood lifestyle that the cast of “Entourage” lived every week on the show. Along
with “Entourage” first class perks of complimentary champagne and snacks offered
throughout September, passengers were also encouraged to participate in the online chat
forums connected with each seat’s computer screen to discuss their favorite “Entourage”
moments of the first four seasons and comment on the sneak preview of the fifth season’s
premiere, shown on the flight.
36

In addition to the Whrrl account and Virgin America partnership, the HBO team
maintained the show’s official webpage with a community page for discussion forums,
Entourage wiki, MySpace profile, character blogs as well as a Facebook page where fans
can connect, have questions answered and view updated photos, video clips, or news
37
.

35
“HBO Entourage Fans Follow Favorite Characters on Whrrl.” Press Release.
http://socialmediaportal.com/PressReleases/2008/09/HBO-Entourage-Fans-Follow-Favorite-Characters-on-
Whrrl.aspx. 4 Sept 2008.

36
Ostrow, Adam. “Social Networking My Way through the Entourage Season 5 Premiere Party.”
Mashable: The Social Media Guide. http://mashable.com/2008/09/08/entourage-season-5/. 8 Sept 2008.

37
Wegert, Tessa. “HBO’s Entourage of Social Marketing Efforts.” ClickZ.
http://www.clickz.com/3630958. 25 Sept 2008.
24

The two websites link back to each other from multiple sub-pages and HBO has made
both very interactive for fans. As of late March 2009, well after the season five finale,
over 194,000 Facebook users were registered as “fans” of “Entourage;” up almost 50,000
users from January 2009
38
. By updating its Facebook content, the HBO team was (at no
cost) able to share information with not only the 194,000 followers but also the friends of
those followers who saw the activity of their friends. For the average U.S. active internet
user and fan of the television series, HBO’s campaign was a creative multifaceted plan to
reach audiences throughout the country.

Case: American Airlines Enters Facebook
History of Company:
In April 1926, Charles Lindbergh, Chief Pilot of Robertson Aircraft Corporation
in Missouri and aviation legend, with two other pilots flew three loads of mail in their
biplanes between St. Louis and Chicago. It was only three years later that Robertson
Aircraft Corporation and other small aviation companies were acquired by The Aviation
Corporation and became American Airways, Inc. This company was renamed American
Airlines, Inc. in 1934 and headed by President and CEO Cyrus Rowlett Smith, who acted
as leader through 1968.
American Airlines has hit numerous milestones since its start in 1929. For
example, it flew its one millionth customer domestically in February 1934; half of its
planes became part of military airline Air Transport Command during World War II; and,
American started its first trans-Atlantic division in 1945. American Airlines expanded at

38
http://www.facebook.com/pages/Entourage/6459871686.
25

an extremely fast rate after that. This is partly accredited to the various value fares the
company introduced in the 1970’s, including a Family Fare rate and SuperSaver
discounted rate. In 1981, American also began AADVANTAGE, the world’s first
program that rewarded frequent fliers. By 2006, this program included more than 50
million members.
More recently, the American Airlines webpage was launched in 1995, to which
the company has given a lot of focus as a key tool in its business operations. The site has
since been expanded to include vacation packages for flight, hotel and car rentals in
addition to flight deals and access to AADVANTAGE and other associated travel clubs.
In 2008, American Airlines introduced its mobile application for web-enabled phones,
allowing its customers to access the main website conveniently through their cell phones.
Currently, the company is headquartered in Dallas and operates under CEO
Robert Crandall.
39
It serves 250 cities in over 40 countries with an average of 3400
flights per day.
40

Industry and Competition Overview:
American Airlines, Inc. is part of the aviation industry. Not only does it operate
aircrafts internationally, but it also acts as a purveyor of aviation technology by
contributing information regarding new products for aircraft carriers and business
operations.

39
“American Airlines History.” American Airlines website.
http://www.aa.com/content/amrcorp/corporateInformation/facts/history.jhtml.

40
“American Airlines.” Facebook page. http://www.facebook.com/pages/American-
Airlines/7003656077?sid=909ec8c7128d40efd496909dac65599d&ref=s.
26

In addition, the organization is part of the travel industry. It provides a form of
transportation for business and leisure travel. It also has partnerships with other areas of
the travel industry, including hotels, travel agencies, rental cars and cruise lines. Finally,
American is part of the shipping industry. It was one of the first airlines to introduce
long-distance freighter planes for commercial use.
Because of the industry American Airlines is involved in, there is a resulting wide
range of competition. American prominently competes with other airlines both within
the domestic United States and internationally. They can be large or small in revenue
size, serving anywhere from five to 200 cities. However, it also competes with other
forms of long distance transportation including car companies, trains, buses and ships.
There are alternatives to business travel that may be a threat to American Airlines
as well. As technology advances, some businesses may choose to settle deals or conduct
meetings via video, phone or internet conferencing rather than paying for travel expenses.

Social Media Opportunity:
An airline powerhouse that constantly stayed up to date with current trends in the
industry and in technology, American Airlines had the opportunity in 2007 and 2008 to
delve into social media after the creation of its mobile capabilities. With the increasing
number of users flocking to social networks, as reported earlier, American Airlines as an
international organization had the opportunity to connect with its target audiences using
these sites.

27

Social Media Execution and Analysis:
In March 2008, American Airlines opened a Facebook account with the intention
of gaining more customers. Currently
41
its Facebook page, which serves as a
representation of the company and brand, is supported by only 9,000 “fans” worldwide.
It lacks content posted by the company aside from one fact about American Airlines and
three pictures of the logo. Therefore, the majority of content posted is user-generated.
Fans have posted approximately 200 personal photographs of AA planes and other
related products in addition to limited wall posts that consist of mixed commentary on the
airline
42
. Compare this with Virgin America, the purely domestic airline that is less than
two years old and has a fleet of 28 planes flying among nine cities
43
. Its Facebook page
boasts almost 13,000 “fans,” pages of multimedia content and links to its Twitter page,
YouTube channel and community forum
44
.
Also that month, American Airlines announced the launch of a Facebook
application called Travel Bag. It served as a wiki to encourage travelers (even if they had
never flown with the airline) to share details of their favorite travel experiences. These
included lists of favorite destinations and activities, a travel log, uploading photos and

41
As of March 29, 2009

42
http://www.facebook.com/pages/American-
Airlines/7003656077?sid=2b26564fe69875d182444bedfc6ff845&ref=s.

43
http://twitter.com/virginamerica.

44
“Virgin America.” http://www.facebook.com/pages/Virgin-
America/5832584410?sid=db67a051a72bef5ab1b98f26f2b21a72&ref=s#/pages/Virgin-
America/5832584410?v=wall&viewas=200025.
28

more. The application would also ultimately link users back to the American Airlines
website where flight reservations could be purchased and online deals were available.
45

As “the first major airline to offer an application on this site for users to
contribute and access travel-related content,” it appeared to be a viable concept.
American Airlines even advertised the launch of the application online on sites such as
Hotmail and Digg, something usually unheard of for Facebook applications and
widgets.
46
Since its launch, however, only 775 users have been linked as “fans” and only
503 of those are monthly active fans.
4748
Only six of these users even reviewed the
application on the site, giving it an average of 2.5 out of five stars. According to reviews,
some users saw this application as a way for the company to gather marketing
information about its target audiences. No matter the motivation, other organizations can
learn from American Airlines’ seeming lack of commitment to TravelBag and its
Facebook page.

45
“American Airlines Launches Exciting New Application Using Facebook Platform.” Corporate Press
Release. http://www.aa.com/content/amrcorp/pressReleases/2008_03/24_facebook.jhtml.

46
“American Airlines launches Facebook widget to collect marketing info.” What Matters Online Blog.
http://whatmattersonline.wordpress.com/2008/03/28/american-airlines-launches-facebook-widget-to-
collect-marketing-info/. 28 Mar 2008.

47
As of March 29, 2009

48
http://www.facebook.com/apps/application.php?id=7826661319&ref=s&ref=s.
29

Chapter 3: Facebook Analysis
To assist in validating the author’s preliminary hypothesis that Facebook is an
ideal environment for organizations to reach consumers effectively, a thorough analysis
of the site was conducted based on extensive observation of activity, testing of
applications and research on expert commentary. The following results of the analysis
indicate a positive association of Facebook with social media marketing.

The Social Network Pedestal?
Especially in the United States, Facebook is not the only social network in
existence but it is increasingly the most popular. TechCrunch reports that even though it
is a younger website, Facebook has been continually growing at an exponential rate,
reaching new audiences in multiple countries around the globe each day. In January
2009, Facebook had 100 million more users worldwide than MySpace and 80 billion
monthly page visits vs. MySpace’s 43 billion. In December 2008 alone, 22% of all
global internet users visited the site. The report goes on to state that current trends
indicate that by January 2010, Facebook will surpass MySpace as the largest U.S. social
network
49
.

49
Arrington, Michael. “Facebook Now Nearly Twice The Size Of MySpace Worldwide.” TechCrunch.
http://www.techcrunch.com/2009/01/22/facebook-now-nearly-twice-the-size-of-myspace-worldwide/. 22
Jan 2009.
30

Figure 2: Facebook vs. MySpace Unique Visitors

Furthermore, Lisa Davis of Time Magazine reported that “though Facebook
started as an online hub for college students, its fastest-growing demographic is the over-
25 crowd, which now accounts for more than half of the site's 140 million active
members.”
50
Only two months after Davis released this statistic, however, Facebook
could claim over 175 million active users, with the fastest growing demographic being
those 35+.
51

Facebook has become so successful partially because it is an internet portal; it
serves as a space that not only accomplishes the primarily goal of connecting users more
efficiently but does so by also connecting its users with other areas of the Web that
interest them. For example, organization profiles can be found on the site as well as
content outside the site that often links back to Facebook with a “share” option. If one

50
Davis, Lisa. “Does Facebook Replace Face Time or Enhance It?” Time Magazine.
http://www.time.com/time/nation/article/0,8599,1871627,00.html?xid=rss-fullnation-yahoo. 18 Jan 2009.

51
“Statistics.” Facebook Press Room. http://www.facebook.com/press/info.php?statistics.
31

reads an article on the New York Times website or sees a video on YouTube that he/she
wants to send to a friend or post to their Facebook profile, it is possible by clicking the
small Facebook icon below the desired content. This is another example of “word of
mouse.” Several videos, pictures or articles get online buzz this way and the popularity
of it sometimes becomes a news story in itself. For example, a videotaped message from
Barack Obama in response to President Bush’s final State of Union Address did not
receive a lot of televised broadcast attention but was reported by the New York Times as
getting more than 1.3 million views on YouTube shortly after it was posted and spread to
over 500 blogs and widely circulated on social networking websites
52
.
An extension of the Facebook platform called Facebook Connect also makes it
easier for users to take their Facebook account over the Web and share what they do
online with friends. By using their account login, registered users can share activities on
sites such as CNN and CitySearch with their Facebook profiles.
53
On Inauguration Day
in 2009, over two million Facebook status updates were published on
http://www.CNN.com/live through the Facebook Connect feature. “The CNN/Facebook
integration showed that millions of people want to talk with their friends while watching
TV that they care about, even if they can’t be in the same place to watch it together.”
54

52
Stelter, Brian. “Finding Political News Online, the Young Pass It On.” New York Times.
http://www.nytimes.com/2008/03/27/us/politics/27voters.html. 27 Mar 2008.

53
Zuckerberg, Mark. “Facebook Across the Web.” The Facebook Blog.
http://blog.facebook.com/blog.php?post=41735647130. 4 Dec 2008.

54
Smith, Justin. “Final Inauguration Day Stats: 2 Million Facebook Status Updates on CNN.com Live.”
Inside Facebook. http://www.insidefacebook.com/2009/01/28/final-inauguration-day-stats-2-million-
facebook-status-updates-on-cnncom-live/. 28 Jan 2009.
32

In addition to Facebook Connect, some sites also have the capable algorithms to
synchronize with Facebook in different manners. Users can sync Facebook events with
Google Calendar, sync Twitter updates with Facebook status updates, or import blogs
from third-party sites to their Facebook profiles
55
.
Additionally, the site’s layout has a cleaner look than other social networks while
sites such as Bebo and Friendster feature very simple designs but do not offer as much
content. MySpace, however, features an extensive amount of well-developed content but
looks overwhelmingly cluttered in comparison to Facebook, even as Facebook continues
to add applications (140 applications are added to the site each day
56
) and changes in
design. Facebook still makes it simple for its users to navigate the site and find
organizations. If a design element changes, developers enable optional pop-up
explanations of the changes when applicable. The site sets high standards for its users
and competitors with high quality services and capabilities. The network constantly finds
new ways to improve and meet the needs of its users, providing several uses for
individuals, groups and businesses.

Facebook Uses
Facebook is a vast, public, multifaceted social network. Though its primary goal
is to “help people communicate more efficiently with friends, family and coworkers,” it
also is a useful tool for marketing, corporate communication and public relations. The

55
Smith, Justin. “How to Import Your Blog Into Facebook.” Inside Facebook.
http://www.insidefacebook.com/2009/02/22/how-to-import-your-blog-into-facebook/. 22 Feb 2009.

56
Singer, Adam. “49 Amazing Social Media, Web 2.0 And Internet Stats.” The Future Buzz.
http://thefuturebuzz.com/2009/01/12/social-media-web-20-internet-numbers-stats/. 12 Jan 2009.
33

company describes itself as a “social utility.”
57
Just like any other media channel,
Facebook can be used to spread messages and connect to audiences. It is also useful for
business-to-business marketing (such as on the career networking site LinkedIn) since
organizations’ posted content is available for anyone to view and share (Weber 199).
58

Organizations need to be wary, however, because “in Facebook, the users are in
charge, not the marketers.” (Holzner 1)
59
Users have the power to post negative
commentary or content on their own profiles or even on an organization’s page. This can
be done repeatedly and remain on the page as long as the user who posted the content or
the creator of the page does not delete it. However, the owner of the page has the ability
to monitor content and even set restrictions for certain groups of people. Alternately,
users also have the power to positively spread content and information among their peers.
It is the features of the website, outlined below, that allow users and organizations to
constantly interact and influence each other.
In March 2009, Facebook reorganized its design to focus on the news feed, which
displays real-time updates of a user’s friends’ activity. Not only is the news feed visible
on the homepage but also on both user profiles and brand or public pages. The latter two
have the same design, developed in March 2009, thus allowing for the average user to
better relate to a popular individual. “Like Twitter, Facebook’s new Pages make it much
more natural for marketers to talk and share fresh content with their fans. Because status

57
Facebook Press Room. http://www.facebook.com/press.php.

58
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 199.

59
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 1.
34

updates and conversations that Page owners have with their fans on the Page will now be
much more prominent, Facebook Pages could become much more important
conversational venues around the brand at hand than they have in the past.”
60

A reporter for Advertising Age theorized that the new layout allowed the creators
of content to have more power in sharing their information. Brands or public figures
using Facebook Pages also have more freedom with the new design to share content or
ideas just as well as the average user. This is posted to a friend or fan’s homepage,
making “sharing” more closely related to “publishing.”
61

Company Profile Defined
A Facebook profile is the tool that all users have to display their personal or
professional information. A typical profile consists of a picture; the user’s name; a
“wall”; photographs; videos; posted items or notes; chosen applications and the option to
display educational information, contact information, profession and personal interests or
views. This is the space where a user represents one’s self, posts new content and
connects with others. When one user is connected to another by request, he/she is a
Facebook friend of the other and each has customizable privacy options that will allow
how much of his/her profile is visible to different groups of people.
An organization or public figure may also have a profile. Their “friends” may
receive information sent to them via messages, wall posts or shared items. In turn,

60
Smith, Justin. “Facebook’s Redesigned Fan Pages to Compete More Directly with Twitter.” Inside
Facebook. http://www.insidefacebook.com/2009/03/03/facebooks-redesigned-fan-pages-to-compete-more-
directly-with-twitter/. 3 Mar 2009.

61
Schafer, Ian. “Facebook’s Changes Give Brands More Freedom.” Advertising Age.
http://adage.com/digitalnext/article?article_id=135034. 4 Mar 2009.
35

friends may also post to the profile as well. This is often popular among public figures as
a more intimate connection to users than a Facebook Page. It is only visible to people
with registered Facebook accounts.

Company Page Defined
Individual Facebook Pages are often used by groups, organizations, or individual
entities such as products, locations or sports teams, to engage with target customers.
“Pages were introduced in November 2007 to let businesses and artists interact with
Facebook members without all the onerous demands of maintaining thousands of
friends… Pages are more focused on a brand or person.” (Holzner 72)
62
They are often
visible to both registered and non-registered users, a marketing tactic to reach multiple
audiences across the internet. Again, it serves as a way for users and companies to
interact. Consumers can choose to connect to an organization’s page without a request
that must be accepted, and is titled as a “fan.” Two-way communication is possible but
the Facebook Page can also serve as a community within the larger Facebook community
by allowing fans to post their own content or opinions to the page while interacting with
each other. An interactive organization will get in the conversation as well. A Page
owner may also post updates regarding what the host organization is doing or offering its
consumers.
A Facebook page is one of the more successful efforts an organization can be
involved with on the network as it can be linked from other websites and even advertised

62
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 72.
36

within Facebook itself. This means that through a page, an organization has more ways
to reach consumers, possibly leading to increased sharing of information and increased
sales.

Application Glossary
• News Feed: The homepage’s main feature that displays real-time updates of
friends’ activities within the site. A user may choose filters of what they would
like to see displayed at a given time.
• Wall Posts: Short, unedited messages or multimedia content added to a Facebook
Profile or Page by the owner of the profile or another user. Users may comment
on each other’s wall posts. A wall is often the most prominent part of a user’s
profile or page.
• Groups: Groups of users connected by a common theme or interest. A group
forms a smaller community within the Facebook community by allowing users to
share information, pictures, etc. Though typically created by individual Facebook
users, an organization may also create a group for users to join to support a
product, cause or the company itself. “Unlike intrusive e-mail updates, which
arrive only when the sender chooses, Facebook groups can be visited at the
member’s convenience. ‘You are not spamming people with information that
they are forced to read,’ [Philip] Robertson [Director of Marketing
Communications for ooVoo] says.” (Scott 233)
63
A Facebook advertising

63
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007.
233.
37

associate,
64
however, stated that the company is attempting to have all
organizations switch from creating groups to pages.
• Events: An event invitation can be created and sent to as many registered users as
the creator desires. Three privacy settings are available
65
to set how visible an
event will be to others on Facebook. One can also control how much content is
shown on the invite and the ability for guests to invite others to the event. This is
often used by organizations to announce a launch, product sale or special event. It
can be publicized to all of Facebook, a specified group of friends or one regional
network. For example, some television networks will invite all Facebook fans to
“attend the premiere event” of a television series’ season premiere. Fans of the
show may say they are attending even though it only serves as a reminder to
watch at home. Some restaurant chains, such as Baskin Robbins, will use Events
to announce a free ice cream cone day or the opening of a new restaurant in a
certain town. Nightclub promoters will use it to gauge how many people will
attend an event on a given night.
• Discussion boards: A feature that can be enabled on many types of websites,
allowing users to post ideas, comments or questions with the purpose of getting
responses and prompting a discussion. This is a useful application to get feedback
on a topic and create an interactive environment.

64
Spoken to on January 21, 2009. Facebook associates are not permitted to give interviews to those who
are not members of the press. The associate spoken to asked to remain anonymous.

65
As of January 15, 2009
38

• Pictures: A visual element that can be added to Facebook profiles, pages, groups
and event invitations, or shared among users. If an organization uses one of these
applications, visual representation is always an advantage.
• A/V material: Abbreviation for audio/visual, this material is namely made up of
videos and music. These features can be added to any of the larger applications
described above. It is not necessary for all groups and organizations but helpful
to those that may need it to enhance a point of interest.

Some observers advise caution regarding the use of these tools: “Creating your
own group can get quite a buzz about your brand. But as with all Facebook marketing,
you have to provide interesting content, not just an ad message.” (Holzner 45)
66
As
stated earlier, consumers do not want to be sold, especially in (what can be) a personal
environment.

How to Use Facebook Efficiently
The survey conducted for this thesis, discussed in detail below, found that 68% of
Facebook users think it is a good platform for organizations to connect to consumers.
However, only 36% of users have taken action to find out more about a business or
visited its website based on its Facebook presence, and only 27% of users have been
bought a product or gotten involved with a cause based on the organization’s
involvement and presence on the site. This shows that while users are open to

66
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 45.
39

organizations targeting them on the site, they are not necessarily impressed or influenced
by what they see.
There are several strategies that businesses can implement to use Facebook
efficiently. To navigate among social networks, relationships and content are paramount.
Relationship building, I would argue, is a two-step process. First, an organization must
convincingly tie its brand or main source of communication to its Facebook persona,
using interesting and engaging content. Second, an organization needs to stimulate two-
way communication in which it is actively involved.
Before establishing a presence on Facebook, most businesses and organizations
will presumably have online presence elsewhere as well, even if only through a corporate
website. Linking an article, product or webpage to a Facebook page or application is one
way to encourage traffic among different sources of information and raise awareness
among multiple audiences. As found in the survey, several consumers care to know that
a company has a relationship with Facebook and what its role is on the site.
The relationship between company and audience is also important across multiple
platforms, allowing consumers the opportunity to feel more connected to a brand, cause
or product when in communication with one or more people representing the
organization. Creating this relationship can increase credibility and affinity. On
Facebook, however, what is appropriate? While organizations should be proactive in
getting their message out, they should wait for the user to reach out first by responding to
a posted application, ad or message. Not until after this first communication has been
established can the marketer provide more content to the consumer. “What visitors really
40

want is content that first describes the issues and problems they face and then provides
details on how to solve those problems. Once you’ve built an online relationship, you
can begin to offer potential solutions that have been defined for each audience.” (Scott
33)
67

Finally, organizations should also use various other types of content to become
efficient marketers on Facebook. Online advertising is primarily displayed through
banner ads bordering the sides of each page of the website. Many of them are based on
an individual user’s preferences gathered from other sites visited or links clicked within
Facebook. Companies can even gather market research data by conducting targeted polls
on the site based on demographics (i.e. French men, ages 22-35).
68
These, however, are
not the only option for social media today. The increasing number of features on
Facebook is an advantage to all types of organizations that can benefit from online
portals. “[Walt] Doyle [CEO of uLocate, a mobile location service] says that the
experience on Facebook has to be very simple and devoid of commercialization. ‘People
are sensitive to corporate content,’ he says, ‘It’s okay to be corporate if it is funny.
Entertainment, fun, simple, and whimsical are all good.’” (Scott 235)
69
Facebook Pages,
pictures, videos, events and applications should be easy to find and simple to use.
Visibility and sharing capabilities are important for companies to get the attention and,
ultimately, the retention of users.

67
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007.
33.

68
Schroeder, Stan. “Facebook’s Monetization Plan? Polls. And Lots of Them.” Mashable: The Social
Media Guide. http://mashable.com/2009/02/02/facebooks-monetization/. 2 Feb 2009.

69
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007.
235.
41

Chapter 4: Results and Recommendations: Ideal Social Marketplace
Creating the “ideal social marketplace” is not easy. As discussed in the last few
chapters, the digital media landscape is vast and malleable. A marketer’s role in this
landscape can also change almost instantly based on its audiences’ behaviors. The push
and pull of online communications can be compared to a supply and demand model.
There is a delicate balance between how much information organizations should supply
and how much their audiences demand. At the same time, the marketer has to be the
mediator in the middle by maintaining relationships with the consumers. An online
social marketplace can also easily vary by industry or culture. The U.S.-based sites and
businesses have international influences that must be considered as global borders fade.
An online survey was conducted between November and December 2008 to
assess the current thoughts of internet users with regard to online marketing. In this time,
102 participants responded, and the following charts show their demographic profile:

42

Figures 3-5: Social Marketplace Survey Demographics

This survey was issued through email blasts, social network posts and messages on
Facebook and Twitter, and posts to a few blogs. Based on respondents’ characteristics,
there is some indication of how current online demographics add up. Specifically,
studies show that while 19-30 year olds consume a plethora of digital media, the online
activity of users over 45 has been steadily increasing. While the results may be skewed
due to the areas in which these respondents are residing (not necessarily their area of
43

origin) and that the majority are women, they provide a good insight as to the opinions of
many different types of users across the country.
The goal of this survey was to gain insight on users’ opinions of an organization’s
presence online and their internet behaviors with Facebook and other forms of social
media. Additionally, the survey was designed to find the best ways a company can
market to a consumer online according to the views of the intended audiences.
Furthermore, after speaking with Facebook employees, two additional
professional interviews were also conducted, the first of which was with the Senior
Analyst on the Optimization Solutions Team for Yahoo!, KiYonna Carr, in December
2008. Her role within the company requires expert analysis of various companies’ online
marketing and advertising in addition to online media and advertising trends. Her
knowledge in these matters was very helpful to formulating the ideal social marketplace.
The second interview covered social media marketing with Ian Padgham,
Associate for the San Francisco Museum of Modern Art (SFMOMA). The conclusions
of this interview add even more evidence about the current mindset of several
organization heads attempting to create relationships between the brand and consumers
online. As a nonprofit organization, SFMOMA relies on admission, memberships and
donations to remain in business. Padgham claims that the purpose of SFMOMA’s social
networking is to not only engage two-way communication with potential site visitors, but
also to deliver information on events and news about SFMOMA.

44

Research Key Findings:
• Consumers are spending almost their entire waking day on the internet.
(69% of respondents average 0-3 hours per day online for personal use and 52%
of respondents average 4-7 hours per day for work or school-related activities,
indicating some overlap for the majority of overall respondents.)
• The second-highest primary use of the internet is social networking.
(Respondents could choose up to three primary uses of the internet. The
following are the majority of highest-rated:
Email – 94%
Social networking – 47%
Work – 42%
Reading news – 36%
Among the lowest were posting multimedia and blogging as primary uses of the
internet.)
• Internet users think companies should be involved with social networks and, of
the respondents active on Facebook, a majority agree the site is a good platform
for organizations to connect and form relationships with consumers.
• Advertising is not the enemy.
(The most-preferred online marketing tactic among respondents was advertising.)
• Organizations are beginning to find that more impressions and user frequency
within a site are producing more favorable results.

45

On blogs, Amazon, YouTube and the like
Online social media, as has been previously discussed, does not consist solely of
social networks. Consumers are involved with several mediums including blogs, online
shopping sites, chat rooms, instant messaging, news sites, and photograph or video
sharing sites. Organizations can strategize which of the mediums will be most beneficial
to them in reaching their target audiences, but using multiple would be ideal. “The
strategy part is important because a blog may not work for every business. Before starting
one, companies have to ‘make sure that the blog fits in with the existing culture of the
company,’ says Walter J. Carl, a professor of communications at Northeastern
University who has studied corporate blogging.”
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Along these lines, blogs may be
among the best marketing tools for a company because they are more focused in terms of
reader interest. A blog can be part of a corporate website or stand on its own. “Though
blogs may not always yield immediate results, they can be part of a ‘halo effect’ that
ultimately gives a business a bigger online presence, says Debbie Weil, a corporate
blogging consultant and author of ‘The Corporate Blogging Book.’”
71
Even micro blogs
such as Twitter (which also now serves as a social network) are starting to reflect this
argument. There is a sense of immediacy with the site, causing it to serve as a “valuable
tool to help monitor key trends, breaking news, and… reporters’ interests.” Users of the

70
Halzack, Sarah. “Marketing Moves to the Blogosphere.” Washington Post. 25 Aug 2008.

71
Halzack, Sarah. “Marketing Moves to the Blogosphere.” Washington Post. 25 Aug 2008.

46

site can stay up to date with the trends of almost any given industry
72
due to its real-time
updates.
Some companies may see more responses from sites that feature more consumer-
generated content, such as Amazon.com. Amazon not only sells products, but serves as
an e-community by allowing users to sell their own products, write reviews, listen to
music, post product photos and more. By tracking past purchases, the website can also
suggest products similar to consumers’ interests. This is a great way for companies to
gain exposure of their products.
Multimedia websites such as YouTube, Digg or Picasa are also great places for
organizations to create a presence. These are all places where users can post their own
content and view the content of others, of a personal or professional nature. Similar to
those aforementioned, these sites also create communities within themselves. Other sites
that feature interactive or multimedia content such as chat elements or podcasts allow
organizations to get in touch with their intended audiences. The first recommendation
comes as a summation of all these points.

Online Media Recommendation: Create relationships with users across several
platforms.
Respondents were asked how they would most like to be marketed to online on
any platform. The majority (56%) of respondents preferred to see an interactive company
website or to be targeted through social networks, especially Facebook. Additionally,

72
Fathi, Sandra. “Tweeting Your Way to the Top.” PRWeek. 11 Nov 2008.
47

because 44% of respondents had differing opinions, it is likely that organizations should
consider other channels aside from a central webpage or a Facebook page.

Figure 6: Social Marketplace Survey – Preferred Online Marketing Strategies

Many organizations are already taking advantage of this finding. According to Yahoo!’s
Carr
73
, several companies invest time and money on online advertising and viral targeting
using the services of comScore250, a site listing the 250 websites with the most web
traffic. This service identifies itself as “a global internet information provider to which
leading companies turn for consumer behavior insight that drives successful marketing,

73
Interview conducted over several days in December 2008.
48

sales and trading strategies.”
74
It rates sites based on the number of unique users as
opposed to repeat users. Carr states that several companies maintain one-on-one
relationships with the sites listed in comScore’s top 250 and consumers actually are
increasingly taking advantage of companies present on those sites.
The key element of success with any of these sites has been stressed many times
already: creating relationships. Not only should users be able to access information or
other content over multiple platforms, but they should also be able to interact with the
individual or organization desired. This can influence consumers to maintain
relationships with an organization on and offline. For example, if an internet user goes
online to look up potential cars to buy, they may look for some information from various
automakers. Many times an online relationship causes the customer to trust one
automaker over another. David Scott argues that,
With all this online conversation going on, some people think that Facebook,
Twitter, and other social networking tools can replace a face-to-face approach to
business. I actually think strong social networking ties lead to stronger personal
relationships because it is easy to facilitate face-to-face meetings that never would
have occurred otherwise. (Scott 245)
75

This is not true for every organization but still raises a point to consider when creating an
online communication plan. Padgham of SFMOMA states that since the museum has
increased its presence in social networks,
There has been a noticeable increase in the dialogue we have with the community.
Being able to post on our blog or write to us on Twitter does make it a lot easier

74
comScore website. http://www.comscore.com/about.

75
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007.
245.
49

for people to interact with us as an institution and that’s definitely something we
want to cultivate and improve.

Ideal Social Marketplace
The best online venue for organizations to reach its targeted consumers at this
time lies in social networks. As demonstrated in the survey, there is a lot of activity in
the social network realm. For instance, when questioned where they post photographs
online, 64% of respondents chose social networks while 27% said they did not post
pictures online at all. This means that only 9% of respondents posted photographs on
sites other than (or in addition to) social networks. This also indicates that at least 64%
of internet users are active on social networks and very interactive within them. If they
are posting pictures, they are likely looking at others’ photos and may appreciate an
organization’s effort to display photographs or other content as well.
Research also shows that a large number of internet users think companies should
use social networks. An impressive 72% of respondents agreed it is “a good idea” for
companies to be present on these sites. Among this group, users believe it is beneficial to
companies on the basis that it stimulates customer involvement; raises awareness of the
organization and its issues, goals or products; and allows them to reach more of its
current audiences or gain new customers. The 28% of respondents who did not find
social networks particularly beneficial to businesses had various reasons but many stated
that it depended on the company; more “serious” companies did not necessarily belong in
social media. Still, this opinion is not held by the majority.
50

For most organizations, Facebook is the most ideal of the social networks.
Because of the wide variety of users and the proven brand awareness and reliability,
several types of industries could benefit from this new method for targeting consumers.
Yahoo!’s Carr agrees with the site’s stature. She states, “Facebook is changing the social
network space.” She goes on to claim this is a result of Facebook’s connections with
other websites as well as its interface. The site allows for better social targeting than just
banner advertisements. With the newsfeed, users can see what their friends are doing
and their interests. She says that “friends like what their friends like.” If one sees that
their friend is a fan of a certain entity, they would be more inclined to check it out. It is
essentially “advertising with a social aspect.” Right now, however, she argues that the
site has a lot of frequency and reach but companies are having problems with
performance. According to the survey, 74% of respondents that use Facebook claimed
they were frequent users (“frequent” was defined as visiting the site at least four times
per week). This is an impressive number; with the majority of individual users also being
repeat users, the marketing implications are clear.
Currently about 51% of Facebook users are signed up as fans of a public figure,
object or organization through its Facebook page. Many of these, according to survey
responses, were only added during the 2008 presidential election. Now that more users
are aware of the ability to become a fan, however, businesses and organizations need to
find a way to guide more users to their pages or build more interaction with their
Facebook Page and other websites.

51

Recommendation #1: Don’t over look mass media marketing. Find new ways to do it.
Because the most preferred method of online marketing to consumers is
advertising, organizations should not dismiss it in their communication plans for the time
being. Many of the survey respondents specified this as targeted ads such as those
Google provides or “clever advertising” that is more creative than the straightforward or
“dry” banner advertisements they claim to ignore currently. On Facebook, organizations
can buy banner ads displayed on the sides of a webpage, or social ads which are
integrated within the site and in users’ newsfeeds. Technically, “social ads are placed in
highly visible parts of the site without interrupting the user experience on Facebook. In
other words, social ads are ads that attempt to get into the social conversation. Facebook
connects them by reading the text of news feed items, for example.” (Holzner 140)
76

Since Facebook is such a highly frequented network, advertising buys are extremely
cheap compared to print or broadcast outlets, and can reach many more users. KiYonna
Carr commented that she is seeing a lot of ad dollars from print and TV transferred to
online efforts. Yahoo!, for example, is adding a TV component to its toolbar so that as
people are spending less time watching actual televisions, they can go online to watch
programs while simultaneously surfing the web, increasing visibility of partnered
companies or sponsors. Many companies are seeing the advantages of online advertising
if done well.
Advertisements through Facebook are also very simple to set up and maintain
through the four-step set up and review process outlined on the Facebook site. Social ads

76
Holzner, Steven. Facebook Marketing: Leverage Social Media to Grow Your Business. United States:
Que Publishing, 2009. 140.
52

are arguably the easiest part of marketing. They must be creative and possibly have
intricate technological or graphic capabilities but not much work needs to be done after
that. Most advertisements do not require a further connection between the organization
and the consumer. Marketers need to be attentive of the advertisement’s design,
placement and where it links. Advertisements now can even include video capabilities or
links to an organization’s Facebook Page from the home page. Marketers can also
request that some Facebook users view their ads more often by using targeted
recognition. Carr also reports that as online ad capabilities are becoming savvier and
more people are signing online, responses are actually increasing.

Recommendation #2: Use Facebook features that stimulate inclusiveness and display
audio/visual elements.
The graph below shows which Facebook features and applications that users find
“effective” or “highly effective” for use by businesses. The top four elements emphasize
inclusiveness (users must join a group or respond to an event invitation) or audio/visual
elements (videos and pictures). This is not surprising; it is has been repeatedly stated that
users like relationships and feeling connected to companies and peers online. Being part
of a group or an event’s “guest list” is one way of doing this. Marketers can send updates
and communicate with participants in both platforms through posting items, messages, or
writing on the wall or discussion board.
In addition to inclusiveness, users are very interested in multimedia content. Only
6% of survey respondents stated that they do not watch online videos from any site. This
53

suggests that the number of online users that do watch them is significant, even if not in
social networks. Pictures and videos are available with almost all Facebook applications
and should be utilized to communicate information, product details, exclusive content
from events, messages from company representatives and more.

Figure 7: Social Marketplace Survey – Effectiveness of Facebook Features

Recommendation #3: Find the specific places where your target audiences interact and
act as a content provider.
In his argument of The Long Tail, Chris Anderson from Wired says that within
any industry there are products that are “hits” and products that occupy “niches.” He
explains that hits are those products that are most popular or mainstream, and the niches
54

are the products that are not as highly consumed but enough so that at least one product is
being used or purchased. Combined, the niches make up more markets than the hits and,
therefore, should be more highly regarded in society today.
77
This applies to Facebook as
well. Companies that have products or ideas including hits, niches, or both have the
opportunity to market them on the site because of the wide variety of user interests to be
found there. The long tail also supports Weber’s argument that social media is made up
of smaller, more focused networks that can benefit niche marketers. “Ultimately,
marketing disappears if it does its job right... A manager of environment helps people
make decisions to buy.” (Weber 14)
78

Organizations can start by surveying the environment where their intended
audiences interact on Facebook. By combining the earlier recommendations with the
behaviors of the consumers, marketers will be able to tailor messaging and content to
appeal to them. Currently, according to Carr and Yahoo!’s research, the demographics
commonly targeted online not surprisingly vary by industry. Older men and women have
been responding well to online marketing efforts in the last year as opposed to any other
group. Now, however, companies are directing their efforts more heavily to younger
audiences (18-24 years old) as responses to advertising and viral communications are
slowly increasing.

77
Anderson, Chris. The Long Tail: Why the Future of Business is Selling Less of More. New York:
Hyperion, 2008.

78
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 14.
55

Recommendation #4: Create content that strongly supports the organization’s brand or
message, and keep it up to date.
Many organizations on Facebook have pages and applications that have
floundered. How did this happen? It is evident that the sites/pages have not been kept up
to date or do not have content that stimulates fans. Some are not successful because they
do not give the user a feel for the company’s personality. This is possibly the most
important part of any marketing process intended to keep a consumer’s interest and
loyalty. Displaying an organization’s goals, messages and public efforts are all part of
showing the personality of the company and is a good way of keeping the consumer
connected. It humanizes the company and creates better content. “Branding is the
dialogue you have with your customers and potential customers.” (Weber 97)
79

Enhancing this dialogue on Facebook can be essential to building credibility on the site
and encouraging users to get more involved with the organization’s offers.
However, there is one over arching issue of concern to marketers. As Padgham
states, “what is difficult is that I think most institutions are still adapting to how they
should act on the social networking sites – i.e. should they be casual or should they
maintain the professional ‘voice’ they tend to have in their traditional publications and
advertising.” This is something each organization must decide for itself based upon the
company or brand’s personality and the relationship it wants to have with consumers.

79
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 97.
56

The Changing Future
Looking ahead, it is hard to predict how the ideal social marketplace will evolve.
Web 3.0 and 4.0 will emerge in the next few years. They “will feature rich media (full of
video, sound, even touch) and broadband, with high definition making the Web more
emotive.” (Weber 13)
80
This may cause for an even richer social media environment,
making it even more challenging for companies to gain the trust of consumers. And more
issues may arise with privacy or technical capabilities.
What seems certain, however, is how the shift in online marketing is changing to
a focus on smaller networks and niches. This will prove to be advantageous to small or
midsize marketers in addition to the larger entities.
81
All, however, will continue to adapt
to changes as has been done in all forms of marketing for decades.

Outlook Recommendation: Continue to analyze online presence and consumer-generated
content.
Consumer trends can best be assessed by listening and getting involved with what
these audiences are doing online. The best way to do this is to meticulously analyze user
feedback on Facebook and other social media sites such as blogs or those featuring
consumer-generated content. Comparing consumer interests with changes in the
economy and improvements in technology will serve as a guide to how organizations
should adapt to any new environments.

80
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 13.

81
Weber, Larry. Marketing to the Social Web: How Digital Customer Communities Build Your Business.
Hoboken: John Wiley & Sons, Inc., 2007. 199.
57

For the future, the only thing that is certain is that “marketing and PR on the Web
will continue to evolve- quickly. Success comes from experimentation.” (Scott 245)
82

What works now as the ideal social marketplace on Facebook will likely not be the best
option five years from now.

82
Scott, David Meerman. The New Rules of Marketing & PR. Hoboken: John Wiley & Sons, Inc., 2007.
245.

58

Conclusion
Throughout the course of this research, the intended goal has been to determine
the ideal social marketplace for individuals and organizations to reach their target
audiences for the purposes of delivering messages about a product, service or idea. It
was through several steps that the positive results were found.
In a meticulous review of literature from multiple industry experts, it was found
that there is a demand for social media marketing and the ideal social marketplace.
Suggested strategies for community building and creating a successful presence in these
online platforms showed that organizations must form relationships with consumers
through transparency and a personable approach without overselling.
The following step in research analyzed two business cases in social media. The
cases chosen demonstrated two separate approaches to connecting with consumers
through different social media platforms. Both have occurred long enough in the past to
show the strengths and weaknesses in their results. The first detailed HBO’s strategic
promotion of the season premiere of one of its hit shows, while the second detailed
American Airlines’ attempt to launch a Facebook application and gain more customers.
The two cases showed how an organization’s continued participation in the social
environment is a factor of success.
Since Facebook was hypothesized as the ideal platform for an organization to
create a social marketplace, a thorough breakdown of the site’s features and environment
was also necessary. Highlighted were some of the numerous applications available for
organizations to capitalize on for marketing purposes. This portal offers more options for
59

organizations to facilitate relationships with consumers than almost any other social
media site.
Finally, an original survey and two interviews were conducted to gain new
information on the opinions of average internet users and predictions from professionals.
It was concluded in the main findings that consumers are respectful of organizations
online and recommend they get involved in social networks, Facebook especially. In
addition, it was found that there is an extremely high usage of multimedia and “inclusive”
content, such as Facebook events or groups created by organizations or public figures.
The most preferred (at 36%) form of marketing from organizations, however, was
targeted or clever online advertising to consumers.
All of these results showed that the research was successful in finding how and
where organizations and individuals can create an ideal social marketplace in the age of
Web 2.0 and in preparation for the future. Research should advance on all of these topics
as trends continue to change through all forms of digital media. The recommendations
made here may not be applicable in five years, as recommendations made just five years
ago may not be applicable now. More case studies should be drawn as results from
current business endeavors become available while further analyses of Facebook and
other social media sites should be done. More comprehensive surveys of global users, as
Universal McCann has continued to do, should be conducted to continue to gain the
attitudes and behaviors of online consumers as well as best practices for organizations.
While the internet is changing rapidly, there are some recommendations made
here that may be relevant for several years to come. The most long lived of these will no
60

doubt be the need to create and maintain relationships with consumers on several social
media platforms. While their opinions on advertising or Facebook groups may change,
internet users will most likely continue to use multiple forms of communication for some
time to come. Organizations that are able to navigate through these varied platforms and
adapt their messages across them are more likely to thrive in the brave new world of
online social media.

61

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66

Appendix: Online Survey Questions
http://www.zoomerang.com/Survey/?p=WEB228NQECLLFX.

Digital Media Use:
1. How many hours a day do you spend online for personal use?
a. 0-3
b. 4-7
c. 8+
2. How many hours a day do you spend online for school or work-related activities?
a. 0-3
b. 4-7
c. 8+
3. What is your primary use of the internet?
a. Email
b. Chat room
c. Social networking
d. Research
e. Blogging
f. Shopping
g. Reading news
h. Reading blogs
i. Games
j. Work
k. Posting multimedia
l. Instant messaging
m. Other __________
4. Do you read or write for blogs?
a. If yes, what kind?
i. Entertainment
ii. News
iii. Political
iv. Advocacy
v. Corporate
vi. Other___________
5. Do you have a Twitter account?
a. Yes
b. No
6. Where do you watch online videos?
a. I do not watch online videos.
b. YouTube
c. FunnyorDie.com
d. College Humor
e. Blogs
f. Hulu
g. TV Network websites
67

h. News websites
i. Email
j. Other ___________
7. Do you have an avatar in Second Life or another multiplayer online game?
a. Yes
b. No
8. Where do you post photographs online?
a. I do not post photographs online
b. Social network site
c. Shutterfly
d. Flickr
e. Snapfish
f. Personal website
g. Personal blog
h. Other ________________
9. Do you own or edit a personal website?
a. Yes
b. No
10. Do you own or edit a corporate website?
a. Yes
b. No

Social Networking:
1. Are you an active member of at least one social network (includes MySpace-like
networks, discussion forums, etc.)?
a. No
i. If no, end of survey
b. Yes
i. If yes, list below:_____________
2. If a member of more than social network, what is your preferred website & why?
______
3. What is your primary use of social networking?
a. Keep in touch with friends
b. Meet new friends
c. Network with current or potential colleagues
d. Search for jobs
e. Look up musical artists
f. Find out more about brands I like
g. Post multimedia
h. Promote a cause or organization
i. Other ____________________
4. Do you participate in focused or themed social networks? (For example,
OpenBottles – a social network for wine enthusiasts)
a. Yes
68

i. If yes, which? __________
b. No
c. I did not know focused or themed social networks were available.
5. Do you think it is a good idea for companies to have a profile on social
networking sites?
a. Yes
b. No
c. Why or why not? ________________

Facebook:
1. Are you a frequent Facebook user? (Frequent is defined as using Facebook at
least four times a week)
a. Yes
b. No
2. Do you know the difference between a Facebook Profile and a Facebook Page
(for “fans”)?
a. Yes
b. No
3. Are you “friends” of a public figure, object, or organization through its profile?
a. Yes ____________
b. No
4. Are you a “fan” of a public figure, object, or organization through its page?
a. Yes ____________
b. No
5. How effective do you think the following applications are for organizations
targeting consumers? (Will you 1-5 scale: Very ineffective, Not effective,
Neutral, Effective, Very effective/I don’t know)
a. Profile
b. Page
c. Creating groups
d. Creating notes
e. Posting videos
f. Posting pictures
g. Posted items
h. Creating events
i. Creative personal applications
j. Discussion boards
k. Other ____________
6. Is Facebook a good platform for organizations to connect with consumers? Why?
a. Yes _____________
b. No ______________
7. In your experience, what do you see as an organization’s primary use of
Facebook? ______________
69

8. Has a business or organization’s Facebook presence encouraged you to find out
more about it or visit its website? Why or how?
a. Yes ____________
b. No _____________
9. Has a business or organization’s Facebook presence encouraged you to buy its
product or get involved with a cause? Why or how?
a. Yes _____________
b. No ______________
10. What is the best way for a business or organization to market to you online?
______________________________

Personal:
1. What is your age?
a. Under 13
b. 13-18
c. 19-30
d. 31-45
e. 46+
2. What is your gender?
a. Male
b. Female
3. In what city do you currently live? _________________

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Asset Metadata

Creator Threatt, Saffronia Renee (author)

Core Title Facebook and the ideal social marketplace: a study of the marketing benefits of social media practices

School Annenberg School for Communication

Degree Master of Arts

Degree Program Strategic Public Relations

Degree Conferral Date 2009-08

Publication Date 08/01/2009

Defense Date 07/01/2009

Publisher University of Southern California (original), University of Southern California. Libraries (digital)

Tag digital media,facebook,Marketing,OAI-PMH Harvest,social media,Web 2.0

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Floto, Jennifer D. (committee chair), Le Veque, Matthew (committee member), Swerling, Jerry (committee member)

Creator Email sthreatt@gmail.com,sthreatt@usc.edu

Permanent Link (DOI) https://doi.org/10.25549/usctheses-m2447

Unique identifier UC1467836

Identifier etd-Threatt-2589 (filename),usctheses-m40 (legacy collection record id),usctheses-c127-171962 (legacy record id),usctheses-m2447 (legacy record id)

Legacy Identifier etd-Threatt-2589.pdf

Dmrecord 171962

Document Type Thesis

Rights Threatt, Saffronia Renee

Type texts

Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

Repository Name Libraries, University of Southern California

Repository Location Los Angeles, California

Repository Email cisadmin@lib.usc.edu