Are Prestigious Brands Underestimating Facebook?

By Jackie Cohen Comment

Facebook accounts for one out of every eight minutes spent online, yet none of the 100 most prestigious brands engage in commerce on the leading social network.

And that’s just the beginning of L2’s findings, compiled in partnership with Buddy Media, in an index of the 100 most prestigious brands’ usage of social media, in partnership with Buddy Media.

Scott Galloway, founder of L2 ThinkTank, says:

“While many prestige brands wait for hard [return on investment] to justify a shift in human, creative, and financial capital from traditional to emerging platforms, others have taken a leap of faith and are in an arms race to acquire Facebook likes.” With cost-per-click “ads on Facebook up 40 percent” in the first quarter of 2011 versus the same time last year, “the industry may look back and regret not having aggressively built communities for a fraction of the cost. However, winning on Facebook is more than just like count. Although many prestige brands maintain monocular focus on the size of their Facebook community, they have failed to embrace the authentic two-way communication and marketing activation required to monetize the platform.”

The Top Ten

Auto and beauty brands hold the top ten spots in the list:

  1. BMW
  2. Clinique
  3. Audi
  4. Lexus
  5. Bare Escentuals
  6. Benefit
  7. Bobbi Brown
  8. Johnnie Walker
  9. Belvedere
  10. Tory Burch

About Those Wall Posts

Other highlights of Buddy and L2’s findings include:

  • Twenty-percent of prestige brands do not allow fans to post on their walls, but they all got lower ratings than the brands that do let people post on their walls.
  • Analysis of more than 800 brand wall posts demonstrates that posts about products garnered the highest interaction rates across the study.
  • Posts around contests and promotions registered the lowest interaction rates.
  • Prestige Facebook efforts are poorly integrated across digital platforms. Just over half are promoted on brand sites through share technology, and only 29 percent incorporate the open graph like application programming interface.

“Our thesis is that competence on Facebook is inextricably linked to shareholder growth in the prestige industry,” says Galloway.

Click here to download a copy of the report. Now, what do you think about Galloway’s theory, dear readers?