L2 Facebook IQ Index 2012 - Ranking 100 Luxury & Prestige Brands on the Facebook Platform

Key Takeaways

l2's 2012 facebook iq index measures 100 prestige brands across 350 data points assessing the brand's competence on the world's largest digital platform our thesis is that competence on facebook is linked to shareholder growth and a proxy for innovation within an organization prestige communities grew more than 200 percent year-over-year as brands began investing in facebook advertising however the industry is still struggling to embrace the social in social media more than 20 percent of prestige brands still do not engage in any two-way conversation and one-third of prestige brands prohibit fans from posting on their facebook walls the growth coupled with limited response times has led to a decline in engagement rates of almost 50 percent since our first facebook iq index in june 2011. a bright spot for prestige brands on facebook is growth and engagement in emerging markets mimicking some of the macro trends in the industry forty percent of brands now maintain at least one local country page these local facebook pages have grown at double the rates of global and u.s prestige communities and register 50 percent higher engagement facebook's most popular city data provides further evidence that the center of gravity is shifting in the industry more than 44 percent of prestige brands including many icons register an emerging market city for example taipei dublisi tunis as the top city people are talking about the brand on facebook a lot has changed since the first facebook iq index a year ago some of the prestige industry's iconic brands are this year's biggest winners including bulgari dior and cartier which all catapulted from challenge to gifted on the backs of massive community growth innovative programming and stronger integration notorious digital laggard prada finally joined the facebook party in january 2012 moving from feeble to average however the facebook iq top 10 remains dominated by retailers and beauty brands that have been deft at facilitating higher rates of engagement via user generated content and local pages and posts on the date of its ipo facebook was worth more than lvmh ppr and richmond combined three weeks on facebook stock has lost a third of its value the culprit facebook investors have shifted the measurement stick from promise to performance similarly the marketing and digital professionals of prestige organizations charged with building an engaging communities on the world's biggest platform will face heightened expectations and scrutiny as tomorrow becomes today for prestige execs the issue of what and how return is achieved on facebook takes center stage our aim is to help prestige managers improve their performance on facebook l2 members can download the full study at l2thinktank.com