MARKETING L EADERSHIP COUNCIL®
www.mlc.executiveboard.com
KEY QUESTIONS
v How have social networking sites
grown in recent years?
v Which demographics can
marketers target via social
networking Web sites?
v How do leading companies
successfully leverage social
networking sites in their
marketing communications?
TABLE OF CONTENTS
Growth of Social Networks
Demographics of Social
Networking Site Users
Implications of Social
Networking Sites for
Marketing
Improve Customer
Understanding
Promote Issues of Social
Concern
Promote Products and
Services
Facilitate Internal
Knowledge Sharing
Increase Brand Awareness
1
“Social Network Marketing to Reach $2.5 Billion in 2011,” Market Wire (9 May 2007)
2
Chris Ward, “Word of The Web, Guidelines for Advertisers,” Microsoft Digitas Advertising Solutions (2007)
3
“ Social Networking User Behaviour Study,” iProspect (April 2007)
JANUARY 2008
ISSUE BRIEF
Leveraging Social Networking Sites in
Marketing Communications
INTRODUCTION
The sheer number of users on social networking Web sites and their
passion for the topic represents a potentially significant opportunity
that marketers have yet to fully understand and tap. As today’s
social networking sites exert a much stronger pull on their members
compared to other Web sites, social networks have become a
potentially useful marketing tool.
Social networking Web sites represent an important media channel
for reaching a diverse demographic, including, teens and young
adults, women, moms, affluent consumers, and older individuals.
Indeed e xperts expect U.S. ad spending on social networks to grow
approximately 200% by 2011.1
Page
2 Consumers respond less to traditional media and advertising, and
are moving towards consumer-to-consumer communication such as
blogging, mobile messaging, comparison shopping sites, word-of-
5 mouth marketing, and peer-to-peer networks . Research states that
80% of consumers trust advice from friends online, representing
three times as much trust than via traditional media . Further, one in
three Internet users visits Web sites containing user-generated
6 content to help make purchase decisions. 2,3
This issue brief examines the opportunities that exist for marketers
7 in social networking Web sites . Case profiles of companies, such as
P&G, Toyota, JP Morgan Chase, Burger King, and Unilever
exemplify how companies successfully leverage their marketing
8 communications via social networking Web sites to achieve one or
more of the following objectives:
9 v Improve customer understanding
v Promote issues of social concern
v Promote products and services
v Facilitate internal knowledge sharing
10
v Increase brand awareness
11
Catalog No.: CEB17O0BK9
© 2007 Corporate Executive Board. All Rights Reserved.
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LEVERAGING SOCIAL NETWORKING SITES IN MARKETING COMMUNICATIONS ISSUE BRIEF

GROWTH OF SOCIAL N ETWORKS

What is a Social Networking Web Site?

“Also known as a virtual community, a social network is a Web site on the Internet that brings people together in a
central location to talk, share ideas and interests, and make new friends” 4

Examples of social networking sites include:

As social networks grow, marketers view this medium as a potential tool for marketing communications. The
following three trends indicate the growth of the social networking phenomenon.

v Increase in number of people visiting networking Web sites

In recent years, social networking Web sites have experienced a spurt of growth in their number of visitors. A 2006
Nielsen/NetRatings study revealed that social networking Web sites experienced a 47% increase in visitor traffic
between 2005 and 2006. During the same period, MySpace witnessed a 367% growth in the number of visitors. 5,6

Over the past five years, the use of the Internet has increased, with interactive Web sites garnering the greatest
attention. Multimedia Web sites that encourage visitors to participate in text , audio, still images, animation, video,
and interactivity content forms and community Web sites , such as blogs, wikis, and social networking sites which
provide visitors with interactive platforms to share common interests exp erienced higher growth in the number of
unique visitors compared to e-mail, news, and games, as illustrated in Figure I.

FIGURE I. Top Five Fastest Growing Online Categories

as Measured by Unique Visitors
December 2005 Versus December 2006

User interaction
drives the fastest-
37% growing online
33%
media.

Percentage
Growth of
Unique 16% 15% 14%
Visitors
s
il

me
ia

ma
ity
ed

n
un

Ga
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E-
im

mm

ma
ult
M

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Co

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ws
Ne

4
http://www.computerhope.com/jargon/s/socinetw.htm (Accessed 13 December 2007)
5
http://www.hitwise.com/press-center/hitwiseHS2004/socialnetworkingmarch07.php (Accessed 15 May 2007)
6
Marshall Kirkpatrick, “Top Ten Social Networking Sites See 47% Growth,” thesocialsoftwareweblog (17 May 2006)

© 2008 Corporate Executive Board. All Rights Reserved.

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GROWTH OF SOCIAL N ETWORKS (CONTINUED )

v Increase in ad spending on social networking Web sites

Experts predict that between 2007 and 2011, U.S. ad spending on social networks will grow 180% from $900
million to $2.5 billion, as illustrated below in Figure II, which is attributable to increased revenue projections of the
popular social networking site Facebook and increased spending on niche social networks. Advertising on social
networks currently represents a small portion of overall online advertising, as illustrated in Figure III, although this
is set to rise to approximately 8% of total online ad spending by 2011. 7, 8, 9, 10 11,12

FIGURE II. U.S Advertising Spend on FIGURE III. U.S. Online Social Network Ad Spend
Social Networks (US$ Million) 11 as a Percentage of Total U.S. Online Ad Spending 12

8.12%
2,500

Advertising U.S. Online

180% Growth Social Network
Spend
Ad Spend as a 4.60%
(US$ Million)
Percentage of
Total U.S. Ad
900
Spend
2%

2007 2011 2006 E 2007 E 2010 E

v Global reach of social networking Web sites.

A 2006 multi-country survey revealed that more than one-fifth of adults around the world visit social networking
Web sites . Emerging countries, such as Mexico, South Korea, Brazil, and China, have the highest percentage of
Internet users regularly visiting social networking s ites compared to developed countries. Marketers can thus take
advantage of this opportunity to target the middle class and affluent consumers in these developing countries.

In most of the countries surveyed, at least two -thirds of all Internet users visit social networking sites during one
month, as illustrated in Figure IV. 13

7
“Social Network Marketing to Reach $2.5 Billion in 2011,” Market Wire (9 May 2007)
8
ibid
9
“Social Network Marketing to Reach $2.5 Billion in 2011,” Market Wire (9 May 2007)
10
Suzanne Vranica, “Advertising: P&G Boosts Social-Networking Efforts—Latest Sites Shift Tack from Brand Promotion to
Market Research,” The Wall Street Journal (8 January 2007)
11
ibid
12
Suzanne Vranica, “Advertising: P&G Boosts Social-Networking Efforts—Latest Sites Shift Tack from Brand Promotion to
Market Research,” The Wall Street Journal (8 January 2007)
13
Wang Xing, “MySpace Taps into New M arket,” China Daily (27 April 2007)

© 2008 Corporate Executive Board. All Rights Reserved.

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GROWTH OF SOCIAL N ETWORKS (CONTINUED )

FIGUR E IV. Location and Internet Users Visiting Social Networking Web Sites
(November–December 2006) 14

South Korea, China, Mexico, Brazil, U.S.,

and UK have the highest percentage of Russia
Germany 1%
social networking users. South Korea
14%
55%

Canada UK
16% 20%
US Japan
Mexico
24% 9%
26% France
12%
India
Brazil 16%
41% China
27%

14
“Social Networking Around The World,” eMarketer (10 July 2007)

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DEMOGRAPHICS OF SOCIAL N ETWORKING SITE U SERS

Estimates predict that nearly half of all U.S. Internet users will visit at least one social networking site on a monthly
basis by 2011. Of the different types of visitors on these sites, the center of gravity of social networking users has
shifted towards women, older users, and mothers, although teens and young adults continue to represent a large
portion of social networking users. Social networks also provide marketers opportunities to target niche customer
segments such as affluent individuals. This page details social networking user demographics, focusing on four
major consumer segments. 15, 16

Teens and Young Adults Women and Mothers

♦ Ninety-six percent of teens use social networking
tools such as blogging and instant messaging and
visit online communities. A 2007 Pew Internet and
American Life Project study notes that more than
55% of teens create a personal profile on a social
netwo rking Web site and nearly half engage in
social networking activities everyday. 17, 18
♦ On the whole, women use social networking sites
more than men, with 56% of women compared 46%
of men visiting online social networks.21
♦ A 2007 American Marketing Association survey
stated that women increasingly refer to social
networking sites to make purchase decisions.22

♦ Word of Mouth Marketing Association research
reveals that 70% of girls and 54% of boys aged 15–
17 years, use online social networking sites.19
♦ UK adults, aged 13-35 years, spend an average of
5.3 hours each month on social networking sites.20
Affluent
♦ Of women, mothers represent a powerful consumer
demographic to target via social networking sites.
In 2006, mothers alone represented 13% of the
48 million visitors on MySpace.23
Older Users

♦ A survey of 1,072 affluent consumers (average
income $150,200 and age 43.6 years) revealed that
more than 40% of these consumers visited a social
networking site, such as Facebook, YouTube,
MySpace, from August 2007–October 2007. 24
♦ Social networking sites are more popular with
younger wealthy consumers and wealthy men.
Research suggests that 32% of affluent men versus
22% of affluent women engage in social
networking.25
♦ In 2005, 55 year old adults comprised 7.1% of
MySpace visitors, which increased to 11.0% in
2006. 26
♦ According to a Nielsen/NetRatings, the number of
social networking users older than 55 is the same as
those who are aged 18 to 34. 27
♦ In 2007, 37% of all U.S. adult Web users will
regularly visit social networking sites, and this will
increase to 39% by 2011. 28

15
Mike Shields, “Social Net Users to Hit Staggering Number,” Brandweek (17 December 2007)
16
Jessica Hodgson, “Young Females Overtake Males in UK Internet Usage,” Dow Jones Newswire (23 August 2007)
17
“96% of Teens Use Social Networking Tools,” eSchool News (18 October 2007)
18
“70% of Americans aged 13–54 Use Social Networks,” WOMMA (11 May 2007)
19
ibid
20
Darren Davidson, “UK is a Nation of Social Networking Obsessives,” Brand Republic (12 December 2007)
21
ibid
22
Rory Thompson, “Rooms Influence Holiday Purchases,” Brandweek (13 December 2007)
23
“Moms Are Hot Demographic at Social Networking Sites,” ENP Newswire (15 June 2006)
24
“Social Networking is Not Just for Kids Anymore,” Reuters (30 November 2007)
25
“The Wealthy and Web 2.0,” Market Wire (3 April 2007)
26
“More than Half of MySpace Visitors Are Now Age 35 or Older, as the Site’s Demographic Composition Continues to Shift,”
comScore (5 October 2006)
27
“Social Net Users to Hit Staggering Number,” Brandweek (17 December 2007)
28
ibid

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING

As consumers’ use of online media grows, advertisers need to review their strategies. Marketers can proactively
engage customers on social networking sites via strategies such as placing paid advertising, p osting comments or
feedbacks, and adding a link from the social networking sites to a company’s or brand’s site. This section profiles
companies that successfully leverage their marketing communications via social networking Web sites. 29

Successful Use of Social Networks in Marketing Activities

I. Improve Customer Understanding

(page 7 and 8) Creates discussion forums to directly interact
with target customers
Advertising on social networking Web sites and
interacting with customers on these sites aids Integrates products into virtual worlds to
companies to generate greater customer insight and determine customer expectations
understand the purchasing habits and behavior of
potential customers. Creates niche social networking sites to
comprehend the purchasing habits of women
II. Promote Issues of Social Concern Partners with social networking sites to
(page 9) spread awareness on CSR issues among the
site’s visitors and Virgin Mobile users
Marketing on social networks allow companies to
communicate about environmental and social issues Establishes a online interactive community
and engage in debate with key stakeholders. for environmentally friendly automobile
customers
III. Promote Products and Services Promotes services through social
(page 10) networking sites to foster loyalty with
target audience
Companies may utilize social networking Web sites to
promote usage and loyalty for a new service or Establishes virtual businesses to engage
product category. globally dispersed business -to-business
customers
IV. Facilitating Internal Knowledge Sharing
(page 11)
Uses social networking sites to communicate
Social networking Web sites provide a forum for
companies to improve internal employee
IBM with B2B customers
communication and encourage the sharing of best
practices and knowledge across geographies.

V. Increase Brand Awareness

(page 12) Provides visitors with entertainment content
on social networking sites to promote brand
Marketing on social networks provides companies resonance
with an outlet to reach a broad range of consumers
and position product offering to increase brand Empowers consumers to design the
awareness and improve consumer perceptions. company’s marketing message on social
networking sites

29
“Social Network Marketing to Reach $2.5 Billion in 2011,” Market Wire (9 May 2007)

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (CONTINUED )

I. Improve Customer Understanding

Social networking sites offer brand owners new and increasingly targeted ways of discovering how consumers think,
feel, and behave. Marketers can gain insight into consumer habits and interests by starting or participating in online
forums for customers to share and learn from each other about products and services that companies offer. 30

v Unilever successfully targeted a customer segment via a social networking Web site. As part of its marketing
campaign, Unilever did not rely exclusively on social network marketing; instead, it utilized this marketing
mechanism as one part of the media mix.

To launch its Sunsilk brand in the United States, Unilever allocated

approximately US$30 million to non traditional media campaigns to target its
desired customer segment, 25-year-old single women. Unilever focused on non
traditional media to meet its target customer in multiple places such as movie
theatres, bars, malls, and social networking sites.

Unilever’s campaign, titled “Hairpay,” included three actors posing as

stereotypical hair care specialists. The company set up profiles on MySpace for
these specialists, through which it offered page visitors advice on hair care,
dating, and women’s issues. This provided the company with a platform
wherein it could interact directly with its target customers and understand
customers’ needs and habits.

Unilever’s MySpace profile attracted more than 4,000 online visitors in the first
two weeks of the campaign.31

30
Phil Muncaster, “ How Blogs and Social Networking Sites Can Be Used to Commercial Advantage,” IT Week (23 July 2007)
31
Steve McClellan, “Unilever's Sunsilk Launch Goes Far Beyond the Box,” Ad Week (21 August 2006)

© 2008 Corporate Executive Board. All Rights Reserved.

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (C ONTINUED )

1. Improve Customer Understanding (Continued)

v Xero x also used social networking Web sites to gain better customer insight to understand its customers’
requirements.

Xerox partnered with Second Life, a virtual world created and managed by
Linden Labs, in which users play, work, and interact with each other using
Internet-based characters or avatars . Second Life ’s substantial subscriber base
spends millions of dollars in this virtual world. Users pay fees with actual
currency, which convert into Linden Bucks for online use. Citizens of Second
Life can undertake various transactions online, and reap the profits through
Second Life's currency exchange.

Xerox views Second Life as a platform for meeting and interacting with
potential and current customers. The company developed a customer-centric
research and development model and involved customers in each step of their
product development process. The virtual world offered potential for Xerox
scientists around the world to collaborate with customers and determine what
features and products customers would like to see Xerox offer.

Xerox used Second Life to launch 15 new products on “Xerox Innovation

Island.” On the marketing side, Xerox provides 3D virtual demos that
customers use to try products and services.

Interacting with online customers enabled Xerox’s experts to determine what

features or products its customer’s wanted, setting the tone of its future
marketing communications. Xerox attracted more than five million people to its
Second Life virtual island. 32, 33

v The case snapshot below discusses Procter and Gamble’s (P&G) decision to create two premium social
networking sites specifically to understand the purchasing habits of women.

Procter and Gamble created an online forum for its female consumers to better
understand their needs and purchasing habits. The company believed that a
better understanding of women customers could enable more targeted offerings.

P&G launched two Web sites aimed at creating online communities and forums
for women to share their stories and learn from each other about issues such as
breast cancer and careers. P&G links one of these Web sites to its People’s
Choice Award and allows women to share their views on topics such as
entertainment. The other site, called Capessa, provides a forum for women to
discuss subjects of interest such as parenting, pregnancy, and weight loss.

The company’s forayed into niche social networking, not to promote specific
brands but to, undertake extensive market research of a particular customer
demographic. 34,35

32
Elizabeth Glagowski, “Xerox Gives Marketing a Second Life,” The Marketing Xfactor (10 May 2007)
33
David Tyler, “Xerox Sees New World Online for Products,” Democrat & Chronicle (18 April 2007)
34
Suzanne Vranica, “Advertising: P&G Boosts Social Networking Efforts—Latest Sites Shift Tack From Brand Promotion to
Market Research,” The Wall Street Journal (8 January 2007)
35
“P&G Launching Social Networking Web Sites,” Dow Jones News Service (9 January 2007)

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (C ONTINUED )

II. Promote Issues of Social Concern

Social networking Web sites provide marketers with a well-profiled target audience who share common interests.
Specifically, companies can use these Web sites as platforms to engage their environmental conscious customers in
topics of common interest. Marketers can also use social networking sites to promote issues of social concern
among their customer base. 36

v The following case outlines Virgin Mobile’s strategy to partner with a popular social networking Web site to
spread awareness and execute corporate social responsibility among that site’s visitors and Virgin Mobile’s
users.

In 2006, Virgin Mobile USA , a mobile phone provider, promoted corporate

social responsibility issues and provided teens and young adults with a platform
for expressing their opinions on issues of social concern. Virgin mobile
partnered with YouthNoise, a youth-based social networking Web site and Stand
up for Kids, a non profit organization focused on improving the lives of
homeless children.

Social networking site YouthNoise provided Virgin Mobile a platform wherein

its customers could interact with each other on a wide array of issues, share their
points of view, and find ways to take action to help their communities. The site
also connected the interests of customers with the work of non-profit
organizations. Virgin Mobile employed various initiatives, such as allowing
customers to download ringtones from its Web site and donating 100% of profits
earned to non-profit organizations.

Through this partnership Virgin Mobile provides the opportunity for thousands
of young adults to learn about homeless children and make a difference in their
lives.37, 38

v The case snapshot below profiles Toyota’s efforts to establish a Web site to drive brand awareness of its
environmentally friendly vehicle and promote corproate social responsibility.

Toyota M otor Sales, USA, Inc., a vehicle manufacturer, launched a social

networking Web site for its community of more than 600,000 hybrid, fuel-
efficient vehicles working on rechargeable battery, owners. Through this Web
site, Toyota provides a forum for its environmentally concerned hybrid owners
to meet and discuss common green issues.

Hybrid owners talk passionately about their vehicles, and through this
community site, Toyota lets them share their reasons for driving an energy-
efficient hybrid car and provide statistics about themselves and their vehicles.
The site als o includes fun features such as a gas savings calculator, and an
interactive distance map, which charts how fuel-efficient Toyota’s hybrid
vehicles are as compared to gas -powered cars.39,40

36
Sumita Vaid Dikshit, “Now Domestic Brand Zoom in on Orkut Mode,” Daily News & Analysis (3 August 2007)
37
“Virgin Mobile Becomes Civic-Minded,” Youth Markets Alert (15 July 2006)
38
“YouthNoise, Stand up for Kids and Virgin Mobile USA Launch Innovative Alliance to Help At-Risk Youth,” PR Newswire
(26 June 2006)
39
“New Toyota Hybrid Synergy Drive Site Asks Hybrid Owners: 'What's Your Reason?,” PR Newswire (2 January 2007)
40
“Green Marketers Need to Target Consumers Where They Spend Their Time: Online,” www.marketinggreen.com (3 March
2007)

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (CONTINUED )

III. Promote Products and Services

As social networks provide customers with a platform to interact with one another, marketers can use these
interactive Web sites to promote their products and services to a potentially larger target customer segment.

v JP Morgan Chase marketed on a popular social networking site to promote its offerings to college students.

JP Morgan Chase, a global financial services firm, sought to encourage the use
of credit cards among college students and foster loyalty within that target
audience.

To promote the Chase credit card, the company partnered with America’s
second largest social network, Facebook—an online community with a large
percentage of students as members—rather than using its own Web site. Banner
ads on Facebook invited members to join a special Chase network. A fter joining
a Chase online community on Facebook, customers could activate a credit card
and read about improve their knowledge on prudent financial practices.
Members of this online community also earned reward points for their activities,
such as paying their bills on time, and could redeem these points for prizes such
as TVs and DVDs.

The company supported the Facebook campaign with offline advertising

designed to bring student customers to the Facebook site. JP Morgan also
secured exclusivity as the official credit card sponsor for Facebook.
JP Morgan created the campaign on Facebook after conducting research that
proved young people prefer to interact with brands in familiar surroundings. 41, 42

v Cisco partnered with Second Life to encourage communication with its business-to-business customers, launch
products, and improve customer knowledge of its products and services.

Cisco, a supplier of networking equipment and network management for the

Internet, uses Second Life, a virtual world where visitors can buy and sell
products using virtual money, for business-to-business communications. In
2006, the company bought two Second Life islands to conduct education and
training o n Second Life, receive feedback from customers on products, and
perform presentations using PowerPoint, video, and streaming audio.

The first island, Cisco Systems, features an amphitheater for mass tutorials and
provides product information and product launch details. Cisco's second island,
Cisco Island, provides a community-based platform meant to take encourage
people to discuss its products. This island enables the company to conduct
classes , executive meetings, and provide personal technical support to
customers.

Second Life enables Cisco to take advantage of the insight they gain from
customer interaction. Cisco’s customer-focused islands allow consumers to
access product information, listen in on executive briefings, and inform of their
preferences. 43,44

41
Pete Cashmore, “Facebook to Offer Credit Cards,” www.mashable.com (15 August 2006)
42
Rachael King, “Marketing to Kids Where They Live,” Business Week (11 September 2006)
43
Robert Holden, “Cisco Gets a Second Life,” TheStreet.com Virtual Report ( 6 December 2006)
44
Mitch Wagner, “Using Second Life as a Business-to-Business Tool,” InformationWeek (26 April 2007)

© 2008 Corporate Executive Board. All Rights Reserved.

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (C ONTINUED )

IV. Facilitate Internal Knowledge Sharing

Social Web sites provide a forum for companies to engage with geographically dispersed employees. Global
companies can also use these online community Web sites as effective recruiting tools.45

v The case profiled below discusses IBM’s strategy of using social networking Web sites to promote internal
employee interaction and facilitate efficient knowledge transfer.

In 2006, IBM, a multinational computer technology company, partnered with

Second Life, a 3D virtual world where visitors can socialize, connect, and create
user-generated content, to establish a virtual business for IBM’s employees and
customers.

The company bought 12 virtual Second Life islands to serve as a virtual meeting
place for current and former employees, an information center for marketing
IBM’s services to customers, and a virtual retail area for IBM customers to meet
and discuss products. The company aimed to use its virtual world as a
IBM communications tool, where its executives, geographically dispersed employees,
and customers could meet and discuss its products. The company planned to use
Second Life as a meeting platform to host virtual employee meetings and
conferences to share knowledge internally. IBM uses a chat room environment
to generate fresh ideas, bringing together employees, business partners, and
customers.

Along with giving its geographically dispersed employee base a common forum
to meet, IBM uses Second Life to engage customers in discussions and improve
customer service.46,47

45
Sandra Fathi, “Thinking Outside of the Box,” B2B Marketing Trends (5 November 2007)
46
Shaun Nichols, “IBM shows off Second Life Creations,” VNUNet United Kingdom (18 December 2006)
47
Steve Hamm, “Palmisano Gets a Second Life,” Business Week (20 November 2006)

© 2008 Corporate Executive Board. All Rights Reserved.

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IMPLICATIONS OF SOCIAL N ETWORKING SITES FOR MARKETING (C ONTINUED )

V. Increase Brand Awareness

A 2007 study stated that advertisers engage consumers on social networking sites to generate brand awareness and
affinity. As consumers frequently visit social networking Web sites, these sites provide an attractive and cost-
effective medium for branding and creating awareness. 48,49

v Burger King marketed on a popular social networking site MySpace to increase its brand awareness among its
target population, who frequently visited that Web site.

Burger King, an international chain of fast food restaurants, rolled out a

campaign on social networking Web site MySpace to reach its target population
primarily composed of younger demographics.

The firm sponsored a special page reflecting the company’s U.S. marketing
slogan and used popular Burger King mascot, The King. Burger King also
teamed up with Fox Entertainment Group to offer popular Fox programs , such
as 24 and American Dad, free of charge to the 75 million members of MySpace.

As a result, an increasing number of MySpace members visited Burger King’s

page to download free recordings of their favorite Fox shows. Burger King
amassed more than 120,000 “ friends” who associate themselves with The
King’s profile. 50, 51

v Honda partnered with a social networking Web site MySpace to allow consumers to create their own user-
generated campaigns for Honda’s new automobile. This helped the company generate interest for its new
automobile and increase brand awareness.

Automobile manufacturer Honda decided to allow its customers to shape its

marketing message for its new Honda Element SC in 2007. The company
encouraged consumers to form user-generated online marketing campaigns. The
advertising campaign for the Element SC model included a variety of animal
characters, of which one character, Gil the Crab, resonated well with the
audience and gained immense popularity.

The company decided to create a Gil the Crab profile page on MySpace. Instead
of using the online profile to endorse its Element SC , Honda promoted its Gil
the Crab as a typical social networking visitor. Gil the Crab wrote blogs,
comments, and interacted with other visitors on its profile page.

As a result of this campaign, more than 100,000 people visited Honda’s

MySpace page to discuss the Element SC. 52

48
Robert Moskowitz, “Behavioral Targeting and Social Networking,” imediaconnection.com (16 January 2006)
49
“Social Networking Sites,” MarketResearch.com (9 March 2007)
50
ibid.
51
Aline van Duyn, “Burger King in TV Web Link-Up,” Financial Times (15 May 2006)
52
Grant W. Repsher, “Marketing Car Shoppers go Online for Advice; Customers Rely on Other Customers as Buying Guide,”
Automotive News (15 January 2007)

© 2008 Corporate Executive Board. All Rights Reserved.

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BIBLIOGRAPHY

Cashmore, Pete, “Facebook to Offer Credit Cards,” www.mashable.com (15 August 2006).

Davidson, Darren, “UK Is a Nation of Social Networking Obsessives,” Brand Republic (12 December 2007).

Dikshit, Sumita Vaid, “Now Domestic Brand Zoom in on Orkut Mode,” Daily News & Analysis (3 August 2007).

Duyn, Aline van ,“Burger King in TV Web Link-Up,” Financial Times (15 May 2006).

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© 2008 Corporate Executive Board. All Rights Reserved.

MARKETING L EADERSHIP COUNCIL PAGE 14
LEVERAGING SOCIAL NETWORKING SITES IN MARKETING COMMUNICATIONS ISSUE BRIEF

BIBLIOGRAPHY (CONTINUED)

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NOTE TO MEMBERS
This project was researched and written to fulfill the research request of several members of the Corporate Executive Board and as a result may
not satisfy the information needs of all member companies. The Corporate Executive Board encourages members who have additional questions
about this topic to contact their research manager for further discussion. The views expressed herein by third-party sources do not necessarily
reflect the policies of the organizations they represent.

P ROFESSIONAL SERVICES NOTE

The Marketing Leadership Council has worked to ensure the accuracy of the information it provides to its members. This project relies upon data
obtained from many sources, however, and the Marketing Leadership Council cannot guarantee the accuracy of the information or its analysis in
all cases. Further, the Marketing Leadership Council is not engaged in rendering legal, accounting or other professional services. Its projects
should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to
consult an appropriate professional. Neither the Corporate Executive Board nor its programs are responsible for any claims or losses that may
arise from any errors or omissions in their reports, whether caused by the Corporate Executive Board or its sources.

© 2008 Corporate Executive Board. All Rights Reserved.