Thursday, June 21, 2012

Wildfire, ComScore, Facebook say Likes are Powerful

Wildfire APP sends me an email about a White Paper on Facebook likes. Turns out it was created by ComScore and Facebook. Right away based on the three members here you know for a fact the White Paper is going to be bullish on Facebook and Likes.

Why? Facebook trying to justify it's $100b IPO wants to show how spending money on Facebook Ads combined with Brand Pages will generate sales.

Why would Wildfire APP care? Their business does not exist without Facebook which is the largest segment of their revenues. ComScore? The number one site for traffic. You see the bias here?

But then the reality comes through. They use Skittles as a case study. Skittles is the 14th most popular candy with $150 million in sales/year.

I can gather some things here now. First off Skittles sells a ton of candy without a website. They basically do paid media, TV commercials, store displays, etc. They sell over 10 million individual bags of candy a month is my estimate. 

Are the 320,000 visitors unique? They don't say. Let's look at their Facebook page:

22,145,827 Fans! So only 1.4% of their fans (if visits are uniques) came to the page! And btw remember this is world wide numbers sales data was just the US. 111,500 talking about. This is how many Likes for posts and Comments and Posts by Fans totaled up. Divided by 7 days it is about 15,000 total actions per day. Which if people take more than one action could be from 5,000 to 15,000 people per day. Worldwide.

So what we know is:

Facebook is not driving sales of Skittles.
People who are Fans are not coming to the page or talking about Skittles on the page.
And with 22million Likes having only 15,000 actions per day is 0.068% of Fans caring about Skittles on Facebook each day.


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