FACEBOOK USER-GENERATED CONTENT (UGC) BENCHMARK REPORT

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1 FACEBOOK USER-GENERATED CONTENT (UGC) BENCHMARK REPORT PUBLISHED: FEBRUARY 13, 2017

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3 TABLE OF CONTENTS Executive Summary Introduction Methodology 2016 Trends UGC Benchmarks 2017 Opportunities Contact Us

4 EXECUTIVE SUMMARY KEY TAKEAWAYS Facebook users engaged with content more frequently in 2016, driving a 26.06% increase in average engagements per post annually But posted fewer original posts and earned fewer engagements overall: average posts per user decreased 29.49% and average engagements earned per user decreased 11.41% Facebook users increasingly engage with original, usergenerated branded content: UGC containing a brand earned 6.9x higher engagement than brand-generated posts While all users who post original content have potential to deliver value, not all users are created equal: micro-influencers (users in the 75 th influence percentile with 500+ friends) earned engagement rate is 3.5x higher than the average user TRENDS 26.06% AVG. ENGAGEMENTS PER POST 3.5x AVG. EARNED ENGAGEMENT RATE, PER MICRO-INFLUENCER VS. PER USER UGC BENCHMARKS AVG. POSTS PER USER PER MONTH AVG. EARNED ENGAGEMENTS PER USER PER MONTH % AVG. ORIGINAL POSTS PER USER % AVG. EARNED ENGAGEMENTS PER USER 5.38 AVG. ENGAGEMENTS PER POST PER MONTH 4

5 INTRODUCTION The challenges brands face when driving consumer engagement through organic publishing and sponsored posts are well documented. Organic reach has steadily Every marketer knows they need to engage consumers on Facebook none of declined since 2012, when Facebook first introduced ads to the News Feed and this is new. But their ability to do so is limited. Today, there are only three ways for shifted its focus to becoming a paid marketing channel as a publicly-traded you to get into consumers News Feeds: company. 1. Publish a post from your brand Page You Your Brand Page 1% -2% of your fans 2. Publish a sponsored post or paid ad Percent change YoY (%) Facebook Ad Revenue vs. Ad Served vs. Ad Rate Q1 '13 Q2 '13 Ad Revenue / User Ads Served Avg. Price / Ad Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 ' Average Revenue per User ($) Consumers, alternatively, do not want their content experiences disrupted by ads. Adoption of ad blockers is expected to increase 43.5% in 2017, a significant to Facebook s revenue growth and effectiveness of many brands digital ad strategies. 2 You Sponsored Post 1%-2% of your target audience 3. A Facebook user publishes a post about your brand The greatest opportunity for generating consumer engagement on Facebook lies in harnessing the power and influence of everyday Facebook users who drive high News Feed engagement among their network when they publish original content. This report determines the current factors driving positive News Feed engagement and UGC benchmarks for performance, providing a new playbook of best practices for social marketing in You Your customers 35%+ your customers friends & family 1. Facebook Quarterly Earnings Reports, , from Facebook investor relations website, accessed January 3, emarketer, US Ad Blocking Users and Penetration, By Device, , June, emarketer website Penetration-by-Device /192987, accessed January 3,

6 METHODOLOGY This report defines the current state of user News Feed engagement across the three primary post signals: post interactions (likes, comments, shares), content type, and who posted. The data in this report represents over 25 million user-generated Facebook posts published from users personal Facebook pages during Jan. 01, 2016 to Dec. 31, 2016, aggregated from the networks of 1.2M+ Facebook users authenticated via first party opt-in through the Mavrck platform. The data in this report was anonymized, categorized, and validated for consistency and accuracy prior to inclusion. This report, or part thereof, should in no way be published or redistributed without the express written permission from a representative of Mavrck. Please research@mavrck.co with any feedback or questions about this report. The data and insights included in this report in no way represent any official position of Facebook. Facebook is a registered trademark of Facebook Inc. ABOUT MAVRCK Mavrck is the leading digital word-of-mouth marketing platform trusted by consumer brands like P&G, American Eagle, and Hulu to harness the power of their most valuable asset: existing customers with social influence. Our patented influencer activation engine enables brands to discover and activate thousands of their most influential customers at scale through their existing digital experiences to share content and drive conversions across social networks. 6

7 2016 TRENDS 7

8 USERS ENGAGED MORE FREQUENTLY IN 2016: 26.06% ANNUAL GROWTH IN ENGAGEMENTS PER POST Average Engagements per Post per Month, ENGAGEMENTS PER POST 26.06% ANNUAL GROWTH RATE Engagements Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Based on analysis of 25.4 million posts via the Mavrck Platform 8

9 OVERALL, 2016 SAW A 30.7% INCREASE IN LIKES PER POST, 19.84% INCREASE IN COMMENTS PER POST, AND 4.81% DECREASE IN SHARES PER POST Average Engagements per Post: Likes vs. Comments vs. Shares, Likes per Post Comments per Post Shares per Post Engagements per Post LIKES PER POST 30.7% ANNUAL GROWTH RATE Engagements 4 3 COMMENTS PER POST 19.84% ANNUAL GROWTH RATE 2 1 SHARES PER POST -4.81% ANNUAL GROWTH RATE 0 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Based on analysis of 25.4 million posts via the Mavrck Platform 9

10 USER ENGAGEMENT DECLINED COMPARED TO 2015: 15.14% DECREASE IN ENGAGEMENTS PER POST Average Engagements per Post per Month, 2015 vs Engagements ENGAGEMENTS PER POST % YEAR OVER YEAR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Based on analysis of 25.4 million posts via the Mavrck Platform 10

11 COMPARED TO 2015, 2016 SAW A 7.87% DECREASE IN LIKES PER POST, 37.47% DRECREASE IN COMMENTS PER POST, AND 27.8% DECREASE IN SHARES PER POST Average Engagements per Post per Month: Likes vs. Comments vs. Shares, Engagements Likes per Post Comments per Post Shares per Post Eng per Post LIKES PER POST -7.87% YEAR OVER YEAR COMMENTS PER POST % YEAR OVER YEAR 3 2 SHARES PER POST % 0 YEAR OVER YEAR Jan '15 Feb '15 Mar '15 Apr '15 May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Based on analysis of 25.4 million posts via the Mavrck Platform 11

12 THREE KEY ALGORITHM CHANGES IN 2016 REVERSED 7 CONSECUTIVE MONTHS OF DECLINING NEWS FEED ENGAGEMENT Timeline of Algorithm Changes vs. % Change in Average Engagements per Post, Month over Month Reduces promotional Page posts and hoax links Instant Articles Launch Introduces News Feed Preferences & See First, Hide post functions Story surveys test user ratings vs. News Feed rank Factors in users post rating & engagement probability; Reactions Launch Factors in time spent viewing content post-click; Reduces clickbait links Prioritizes post ratings, relationship strength & engagement history; Launches new ad controls; Penalizes clickbait, spam headlines % Change Month over Month Prioritizes content from friends over Pages Factors in time spent viewing post & video actions Begins testing Reactions on posts Factors in Facebook Live video Prioritizes friends, family & core value content Penalizes fake news: Introduces Dispute function; Adds Moments to top of News Feed 1 0 Jan '15 Feb '15 Mar '15 Apr '15 Based on analysis of 25.4 million posts via the Mavrck Platform May '15 Jun '15 Jul '15 Aug '15 Sep '15 Oct '15 Nov '15 Dec '15 Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 12

13 USERS GENERATED LESS ORGINAL CONTENT IN 2016: 29.49% DECREASE IN POSTS PER USER Average Posts Generated per User per Month, POSTS PER USER % ANNUAL GROWTH RATE Posts 30 Posts Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Based on analysis of 25.4 million posts via the Mavrck Platform 13

14 USERS EARNED FEWER ENGAGEMENTS IN 2016: 11.41% DECREASE IN ENGAGEMENTS PER USER Average Engagements Earned per User per Month, ENGAGEMENTS PER USER % ANNUAL GROWTH RATE Engagements Jan '16 Feb '16 Mar '16 Apr '16 May '16 Jun '16 Jul '16 Aug '16 Sep '16 Oct '16 Nov '16 Dec '16 Based on analysis of 25.4 million posts via the Mavrck Platform 14

15 USER-GENERATED CONTENT CONTAINING A BRAND DROVE 6.9x HIGHER ENGAGEMENT THAN BRAND-GENERATED CONTENT Post Type vs Engagement Rate: User-Generated vs. Brand-Generated Post, 2016 User-Generated Post Containing a Brand 6.9 x Brand-Generated Post Shared by a User 1x Increase in Engagement Rate Analysis based on sample size of 536,238 micro-influencer brand activations completed via the Mavrck Platform 15

16 THE MICRO-INFLUENCER EFFECT: EARNED ENGAGEMENT RATE IS 3.5x HIGHER FOR USERS IN 75 TH + INFLUENCE PERCENTILE WITH 500+ FRIENDS Avg. Engagements per Post vs. Percentile Social Influence Engagement Rate per User vs. Friend Count SOCIAL INFLUENCE PERCENTILE Avg. Engagements per Post Engagement Rate per User (%) A user s Influence Percentile is a predictive measurement of a user s ability to generate a reaction from their friends, family and followers when creating content on behalf of a brand on a social network. This is based on a user s influencer score, as determined by Mavrck s patented relationship-based algorithm. Each user s influence score is compared globally to all users authenticated by the Mavrck platform and given a percentile (0-100) ranking used to filter and identify influencer segments. Facebook Influence Percentile Friend Count Analysis based on sample size of 10,500 users with an average network of 512 friends 16

17 FACEBOOK UGC BENCHMARK REPORT 17

18 Q FACEBOOK USER-GENERATED CONTENT BENCHMARKS Q Engagements per User per Month Posts per User per Month Engagements per Post per Month AVG. ENGAGEMENTS PER USER PER MONTH Q AVG. POSTS PER USER PER MONTH Q Q AVG. ENGAGEMENTS PER POST PER MONTH

19 Q FACEBOOK USER-GENERATED CONTENT ENGAGEMENT BENCHMARKS Likes per User per Month Comments per User per Month Shares per User per Month Q AVG. LIKES PER USER PER MONTH Q AVG. COMMENTS PER USER PER MONTH Q AVG. SHARES PER USER PER MONTH Q

20 OPPORTUNITIES IN

21 THE CURRENT STATE OF FACEBOOK UGC ENGAGEMENT IN 2017 Facebook users are engaging more frequently with user-generated content 26.06% AVG. ENGAGEMENTS PER POST Facebook users are publishing less original content and earning fewer engagements on average. Microinfluencers (users in the 75 th influence percentile with 500+ friends) earned engagement rate is 3.5x higher than the average user % AVG. ORIGINAL POSTS PER USER % AVG. EARNED ENGAGEMENTS PER USER Original user-generated content that contains a brand outperforms brand-generated content. 6.9x INCREASE IN ENGAGEMENT, UGC THAT CONTAINS A BRAND VS. BRAND- GENERATED CONTENT 21

22 FRIENDS AND FAMILY COME FIRST ADAM MOSSERI, VP, PRODUCT MANAGEMENT, NEWS FEED. 3 During both Q and Q earnings calls, Facebook warned that it expects to run out of ad space, hitting peak ad load mid Ad dollars fuel Facebook s revenue engine, and up until now it has shattered analyst estimates with unlimited ad supply to meet marketers demands. With its ad auction marketplace, Facebook s ad rates are predicated on competition, with premium display units going to the highest bidder. If you plan on maintaining your impact without blowing your budget, the actions you take now to implement an alternative marketing strategy could be the difference between having News Feed visibility or being outbid and off-network buying your CPMs through Facebook s Audience Network. There are three primary signals that determine News Feed rank: who posted, content type, and post interactions. As such, your UGC Facebook strategy requires three things: Facebook users who publish original content, user-generated content featuring your brand, and engagement from that users network. With engagement up 26% and continuing to grow, we know users are hungry for content as long as it s shared from friends & family. The critical factors for success depend on discovering customers who will advocate, and identifying relevant opportunities for them to create quality branded content. POST CREATOR: YOUR CUSTOMER ADVOCATES & INFLUENCERS CONTENT TYPE: UGC WITH PHOTO, VIDEO FEATURING YOUR BRAND POST INTERACTIONS: NETWORK ENGAGEMENTS Putting our benchmark data and best practices to work, here are our recommendations for becoming a UGC-powered machine in Mosseri, Adam Building a Better News Feed for You, Facebook, June 29, 2016, on the Facebook newsroom website, accessed January 3, Facebook Quarterly Earnings Transcripts, Q3 2016, from Facebook investor relations website, Q416-Earnings-Transcript1.pdf, accessed January 3,

23 WHO: DISCOVER YOUR EXISTING CUSTOMER ADVOCATES & INFLUENCERS When it comes to compelling UGC, you already have an untapped army of creators with brand stories to share in the form of your existing (or soon-to-be) customers. When determining who among your customer base has potential, look for customers who: 1. Are Loyal: These customers already have an existing relationship and possess positive feelings towards your brand that you can tap to share through content. Start with your existing loyalty program, or customers with a history of repeat purchases. 2. Will Advocate: The recommendation and public support of a loyal customer is the most trusted form of marketing. It s also necessary for content creation. Segment your loyalty list by those who have created content or stories about your brand, such as a contest entry, product feedback, reviews, referrals and social content. 3. Have Influence: In its most basic definition, to influence means to move another person to desired action. Segment customer advocates based on content performance aligned with your goals, such as comments on reviews, conversiongenerating referrals, and engagements on social content. While there is value in getting as many customers as possible to create content, the ability of that customer to inspire action is dynamic. Determining who among your customers has brand influence significantly impacts your ability to efficiently scale the success of your program. 23

24 HOW: IDENTIFY OPPORTUNITIES FOR CUSTOMERS TO CREATE & ADVOCATE Your customers who are loyal, will advocate, and have influence are your most valuable and underutilized assets when it comes to UGC activation. But with the decline of organic posts during the past year, user activation needs to be integrated around relevant, customer-initiated brand experiences that create organic opportunities for storytelling around the stages of your customer journey you want to impact the most. Start by taking inventory of your activation potential: 1. Which stage(s) of your customer journey are you targeting? 2. Which brand touch points generate high customer engagement (e.g. web, mobile, )? 3. What stories and content about your brand are your customers already sharing? 4. What relevant topics are your customers already posting about that are opportunities for brand and product integration? Your answers will help determine your best opportunities to engage customers to create content in the moments they re already interacting with your brand. For example, if your goal is to move target consumers from consideration to purchase and your highest point of customer engagement is , you would content activation notifications to lookalike customers post-purchase to share a review (with photo!) on Facebook. 24

25 WHAT: ORIGINAL & VISUAL USER-GENERATED CONTENT FEATURING YOUR BRAND With a wealth of customer influencers and no shortage of experiences to share about your brand, it s time to take a page straight from the source. Facebook gives higher priority to video (Facebook Live) and photo posts, which increase users time spent engaging with content. Keeping this in mind, your activation ask to your customers should prompt the creation of one of three types of UGC: 1. UGC that Informs & Educates: prompt customers to tell their stories of what your product allows them to do and accomplish. These use case driven, post-purchase posts include ratings & reviews, product samples, and unboxing videos. 2. UGC that Inspires & Entertains: prompt customers to tell their stories of who your product allows them to be and become. These aspirational, affirming product posts can tie into campaign-themed contests & promotions, or align with brand-relevant lifestyle topics, keywords and events. 3. UGC that Converts: prompt users to share exclusive product offers. These are promotional posts that include promo codes and other exclusive promotions that friends & family can redeem. These posts are often transactional, with the customer receiving a mutual incentive of equal or more perceived value (FTC disclosure required). It s best practice to provide minimal brand guidelines & requirements to allow customers the creative freedom to incorporate your brand as they see fit. 25

26 FINAL THOUGHTS: PUTTING THE PLAYBOOK INTO PRACTICE This benchmark report is designed to be a starting point for marketers to understand and realize the potential value they can create by incorporating a UGC-powered social strategy into their Facebook marketing initiatives (and Instagram, if history is any indication). We believe your most valuable asset are your existing customers. Facebook may change its algorithm frequently, but in highlighting the current factors and evergreen values that drive engagement, we hope we ve offered actionable solutions for success. Mavrck is among the technologies available that automate and scale this process, making it as easy to implement as your current ad strategy. If you have any questions regarding this report or best practices, feel free to contact us at research@mavrck.co 26

27 REFERENCES "US Ad Blocking Users and Penetration, by Device, " Data and Research on Digital for Business Professionals. Accessed January 03, Device / "Facebook Q Q Earnings Reports." Facebook - Home. Accessed January 03, "Facebook Q Earnings Transcript." Facebook - Home. Accessed January 03, Mosseri, Adam. "Building a Better News Feed for You." Facebook Newsroom. Accessed January 03,

28 Rise above the noise. contact us: 28

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