Business Week - "CEO Guide to Widgets: When Facebook Ads Flop"

When Facebook Ads Flop

For every marketing widget that takes off on the social network, dozens bomb. A look at why

Little wonder why big brands want their messages on Facebook. What smart marketer wouldn't want to reach the more than 60 million people who spend part of their Web surfing time on the social network? But conventional ads that show up as a banner alongside a person's profile have little effect, research shows. So advertisers are turning to so-called widgets, clusters of software in the form of games, quizzes, videos, or other tools that users can download, customize, and forward.

A widget success story is Parking Wars, a game created by the A&E Television Network to promote a new reality show about parking-meter readers in Philadelphia. Within eight weeks of its introduction, Parking Wars was installed by 151,294 Facebook users and by Feb. 11 had a daily active user rate of 51,440, or almost 34%.

For every marketing widget that takes off on Facebook, dozens bomb. "With nearly 17,000 Facebook apps available, having your own app stand out is challenging," says Eric Weaver, president of marketing consultancy Brand Dialogue. Data from Adonomics, a company that tracks Facebook user patterns, shows many brand-driven widgets had daily active user rates of as little as 1% to 2% on Feb. 11, 2008.

To find out why some campaigns fail, BusinessWeek.com consulted Weaver, as well as Sarah Hofstetter, vice-president of emerging media and client strategy at digital marketing agency 360i, and David Armano, vice-president of creative at Critical Mass, an interactive services company. The slides below highlight barely used applications, when they began generating enough traffic to be measured by Adonomics, and why experts say they failed.

1. Bad Chemistry
AMC Entertainment
Breaking Bad: Chemical Codebreaker
Peak installs: 7,700
Began generating traffic: Dec. 28, 2007

AMC's new acclaimed drama Breaking Bad is about a chemistry teacher played by actor Bryan Cranston (shown here) who breaks into the crystal meth business. The Facebook ad, a game that tests knowledge of chemistry elements, flopped. At its peak, in January, 2008, the ad garnered only 586 daily active users. That dropped to 65 by Feb. 11.

Weaver: "I really love this show. But let's say I'm a high school student who's hopped onto Facebook after getting home from school. What's the last thing I want to think about? A chem quiz! Beautifully executed Flash piece that requires too much thinking, provides too little reward."

2. Rough Cut Blockbuster (BBI)
Movie Clique
Peak installs: 68,900
Began generating traffic: Nov. 7, 2007

Blockbuster faces some stiff competition with its Movie Clique widget, which lets Facebook film buffs rate and suggest movies to friends. Its peak of 2,516 daily active users is miniscule compared to Flixster Movie's peak of 2.3 million daily active users. By Feb. 11, Movie Clique daily active users dropped to 453.

Hofstetter: "When a branded version goes up against an identical nonbranded app without an extra value or nuance attached to it, nonbranded will win every time. An alternate option would be to partner with and tap into (Flixster's) already large user base."

3. No Need for Speed
Electronic Arts (ERTS)
My Need for Speed
Peak installs: 54,200
Began generating traffic: Nov. 20, 2007

The Need for Speed ProStreet widget lets players of the popular racing game post in-game screen shots and stats to their Facebook profile. The number of daily active users surged to 2,976 about a week after the game's official release but had plummeted to 512 by Feb. 11.

Weaver: "This is a great example of those Facebook apps that require you to sign up friends before you can even start using them. Note to developers: huge turnoff. Forced 'virality' didn't work with Amway, either."

4. No Go
eBay (EBAY)
To Go
Peak installs: 1,600
Began generating traffic: Aug. 29, 2007

With eBay's To Go widget, the auction site's bargain hunters can highlight their favorite eBay discoveries on their Facebook profiles. Even at its peak, on Aug. 30, 2007, the widget had a meager 30 daily active users. By Feb. 11 the number had dwindled to 10.

Armano: "EBay To Go seems like a good idea. The question is, do people want to interact with eBay through Facebook? Maybe making something portable because you can isn't always the best strategy."

5. Brandless Is Better
Hallmark Cards
Hallmark eCards
Peak installs: 38,900
Began generating traffic: Nov. 5, 2007

On Christmas Day, the number of people sending Hallmark eCards to their Facebook friends spiked to 961. Still, by Feb. 11, that number had dropped to 233.

Armano: "Hallmark eCards is very easy to install and use and seems like a great idea. Problem is that there is a lot of competition in this space. Consider Cool Greetings eCards, which claim to be the second most popular eCard application on Facebook (70,000 users). In any social network, brands are competing with the 'nonprofessionals.'"

6. Widget Blues
Sony BMG
Bob Dylan
Peak installs: 24,900
Began generating traffic: Nov. 27, 2007

Sony BMG released a Bob Dylan Facebook video widget days before his new album was due in stores on Oct. 1, 2007. It featured a young Dylan singing the first verse of "Subterranean Homesick Blues" and holding up pieces of paper that Dylan fans can personalize with their own messages. Interest peaked on Sept. 27 with 1,671 daily active users but was down to 171 by Feb. 11.

Hofstetter: "There's limited long-term value in an app around a single album, though it can certainly do a lot to raise awareness during a very critical time, which is evidenced by the larger number of installs during a short period."

7. Faux Hip
Verizon Wireless
Verizon Tones
Peak installs: 4,800
Began generating traffic: Nov. 10, 2007

With the Verizon Tones widget, Facebook users can find a ringtone and suggest it to a friend. Of course, anyone who downloads the ringtone will have to pay for it. The application had 218 daily active users at its peak in January. The number dropped to 35 by Feb. 11.

Weaver: "Sending ring tones to friends isn't a bad idea. But how do you know if they're on Verizon's network? The cheesy stock photography of supposedly related cell-phone users is faux hip and doesn't smell very authentic."

8. Limited Appeal
Warner Bros. Records
The White Stripes
Peak installs: 6,000
Began generating traffic: Aug. 29, 2007

Jack White, shown here, and the White Stripes got a warm reception for the album Icky Thump, released in June, 2007. Yet, the Facebook widget, which lets fans download a song from the album to their profile pages, got the cold shoulder. With 77 daily active users at its peak in September, that number plunged to just 15 on Feb. 11.

Weaver: "I suspect fans just don't know about it and it duplicates the more functional, more popular iLike application. With iLike, I can share my affinity, view videos, look at concert dates, etc., for any band. Who's got time to manage all these applications?"

9. Tough Crowd
Yahoo! (YHOO)
Yahoo Finance
Peak installs: 2,300
Began generating traffic: Aug. 29, 2007

The Yahoo Finance widget lets money-savvy Facebook users add charts of three stocks to their profiles. Yet, Facebook might not be the best audience for stock quotes. The application had 118 daily active users at its peak in August and a mere 29 by Feb. 11.

Hofstetter: "It seems like it hasn't been updated in months. This may be better suited for a more business-oriented social network, perhaps like LinkedIn."