Every brand is valued in 2 ways: 1) by the tangible brand value it holds in the form of revenue (Coke Classic revenue vs. Diet Coke revenue vs. Coke Zero revenue etc.) and 2) the intangible brand value it holds in the mind of the consumer, also known as brand equity. A brands equity depends on 2 things: 1) how aware the consumer is of the brand and 2) how positive the consumer is about what they know about the brand as perceived by its image. The consumer’s level of awareness of the brand is evident by 1) how well the brand is recognized by the consumer and 2) how well the brand is recalled when the consumer needs what it does. A consumer’s perception about the brands image is reflected in 1) the attitude they hold toward the brand and 2) how well the consumer perceives the brand to fulfill the purpose it intends to fulfill plus any other perceptions that can be scaled positive or negative. These metrics indicate a brands equity can be high, low or anywhere in between. It depends on the consumer.
A brands level of equity is what drives purchase, repurchase, brand loyalty etc. A brand with high equity will have a high number of purchases, repurchases, loyalty etc. Social networks such as Facebook and Twitter are what help drive much of a brands equity these days in what marketers call “many to many” marketing. Many people talking about brands to their many friends through social media. The infographic below shows how Facebook and Twitter stack up against each other, which is helpful in deciphering how each can be used to build brand equity.
Source: AYTM Market Research
Based on the infographic, Facebook is the better platform for building a brands equity. Seventy-four percent of Facebook’s 845 million active users use the site daily where only 35% of Twitter’s 100 million active users do. Fifty-eight percent of Facebook’s users have “liked” a brand where only 29% of Twitter users are “following” a brand (for those who don’t know, “liking” and “following” are synonymous). And though Facebook and Twitter are close in their number of users who mention brands in their posts (42% of Facebook users and 39% of Twitter users respectively), Facebook users are more likely to share someone else’s post about a brand than Twitter users are (41% vs. 29% respectively).
How does all this relate to building brand equity? Facebook has more users who use the site more often, are posting more messages about the brands they like and recirculating messages about the brands their friends like more often. Because of this, Facebook users are exposed more often to a brands messages, logos, positive press, customer success stories, promotions, discounts, events and of course what one’s friends feel about the brand which all influence the consumers knowledge of and perception of the brand. This frequency and depth of brand engagement compounded with the persuasiveness of one’s social contacts is what creates brand recognition, stimulates brand recall, promotes a positive brand attitude and a positive perception of how the brand is fulfilling on its promises.
As a side note, according to the infographic, the majority of posts about brands on both Facebook and Twitter are positive rather than negative and positive information spread by friends is remembered better than negative information. The sheer number of users Facebook has and their level of activity on the site mean that those positive posts cover more ground, making Facebook an essential tool for building brand equity.
If your company doesn’t have a Facebook account, consider getting one.
- A Business Paradox: What’s Your Brand Really Worth? by @TeaSilvestre (smallbusinessfinanceforum.com)
- Strengthen Your Brand name Equity As a result of Social Media (ronmedlin.com)
- 9 Hot Tips for Small Business Marketing on Facebook (mashable.com)