Social Media Surge by the 2012 Fortune 500: Increase Use of Blogs, Facebook, Twitter and More

 Conducted By:

Nora Ganim Barnes, Ph.D., Ava M. Lescault, MBA and Justina Andonian
Charlton College of Business Center for Marketing Research
University of Massachusetts Dartmouth 

Introduction 

Fortune Magazine annually compiles a list of America’s largest corporations, aptly named the “Fortune 500” (F500) given their size and wealth. Due to the hugely influential role that these companies play in the business world, studying their adoption and use of social media tools offers important insights into the future of commerce. These corporations provide a look at emergent social media trends among America’s most successful companies.

Each May the list of the top 500 corporations is released in a special issue of Fortune Magazine. The F500 list includes publicly and privately held companies for which revenues are publicly available. For more information on the methodology used to select the F500 corporations, please visit http://money.cnn.com/magazines/fortune/fortune500/.  

In 2008, the University of Massachusetts Dartmouth Center for Marketing Research released one of the first studies on social media adoption among the F500 and has repeated that study every year since. The study has been expanded over the years to include the usage of the fastest growing social media platforms and tools as well as indicators of engagement (such as the number of Facebook fans and Twitter followers).

Last year’s F500 study drew attention for the leveling off of blogging with only 23% hosting a public facing corporate blog in both 2010 and 2011.  The latest iteration documents a leap forward for these titans as they show the first signs of really embracing a range of social media tools.

Methodology

As in previous years, the following definition was used to locate 2012 F500 corporations with blogs: A company was counted as having a blog if they had a public-facing corporate blog from the primary corporation with posts in the past 12 months.

Due to the complexity of corporate legal structures in this group and no clear methodology on how subsidiaries have been located or analyzed by others, the research presented here continues to focus on the primary/listed corporation. While we acknowledge that mergers and acquisitions along with expansions have resulted in segments or subsidiaries with blogs, our focus has consistently been at the corporate level. 

For the first time this year, we have also included specialty blogs for corporations that have created a blog to recruit new employees, to promote some topic or for fundraising purposes. These will be reported separately to maintain the integrity of comparisons with the past studies in which only public facing corporate blogs were recorded.  In addition, it is worth noting that there is evidence of usage of social media tools such as blogs inside these corporations. This research did not look at that subject, but instead focused on public-facing corporate blogs as a barometer of social media usage to engage the public.

All corporations were analyzed using multiple steps. First, working from the published 2012 F500 list, all corporate home pages were examined for links to, or mention of, corporate blogs. If none were found, a search on the company’s site was conducted using the key word “blog.” Any links resulting from that search were followed and evaluated using the established criteria.

If no blogs were located on the home page or through a site search, other search engines were used. Both Google and Technorati (a leading blog-focused search engine) were employed to check for corporate blogs using key words that included the primary/listed company name and the word “blog.” This proved to be an effective method since additional blogs were located.  A search of other sites gathering information on the F500 was also reviewed for any mention of blogs in that group.  

The same methodology was used to locate corporate Twitter accounts and Facebook pages.  In each case the appropriate sites for each platform was utilized.  In this year’s study, the number of corporate YouTube and Pinterest accounts was also studied. The same methodology was employed as described above for blogs, Twitter and Facebook.  Specialty (not corporate by definition) Twitter accounts and Facebook Pages were recorded and reported separately at the end of this report.

1a. Corporate Blogs

In 2012, 139 companies (28%) had corporate blogs showing the largest increase in use of this tool since the 2008 study of the F500. These include two of the top five corporations (Exxon and Wal-Mart), leaving the other three without a public-facing blog.  They include Chevron, ConocoPhillips and Berkshire Hathaway (replacing Bank of America in the top 5).  

1b. Corporate Blogs by Industry

The 139 corporations with blogs come from 54 of the 71 industries represented in the F500. A partial list is presented below showing those industries with the greatest presence in the F500. The percent of corporations blogging varies by industry. As might be expected, companies in the Telecommunications industry have 40% of their companies blogging.  Commercial Banks, Specialty Retail and Utilities have 25%-30% of their companies with corporate blogs.  In contrast, only one company in the Aerospace industry blogs.

The 17 industries with no companies blogging include Forest and Paper Products, Railroads, Tobacco, Toys/Sporting Goods, Real Estate, Building Materials/Glass, Trucking and Waste Management.

1c. Corporate Blogs by Rank 

Since 2008, rank has influenced adoption of blogging in the F500. Those corporations ranked in the top 200, out blogged those in the bottom 200. This continues to hold with 54% of all F500 blogs coming from the top 200 corporations and 28% coming from those ranked 300-500 on the list. With more than half of all F500 blogs coming from the top 200 corporations, rank continues to be a factor in the use of this tool.

1d. Level of Interaction on Corporate Blogs

All blogs were examined to determine the level of interactivity the blog allowed. This was done by looking at the blog to see if comments were accepted, if RSS feeds or email subscriptions were available and checking the date of the last post to determine how current it was. In 2012, 90% of the F500 blogs take comments, have RSS feeds and take subscriptions.

These blogs are kept current with frequent posts on a range of topics. It appears that those companies that have made the decision to blog have utilized the tool well. There is frequent posting, on-going discussion and the ability to follow the conversation easily through RSS or email subscriptions.  While there are more blogs this year, this level of engagement has been typical.  Those companies that choose to blog use the tool effectively.

2.  Comparison with the Inc. 500

In the past, the F500 companies were blogging at a lower rate than other business groups, specifically the Inc. 500.  The Inc. 500 list is composed of the fastest-growing, private companies in the US, while the F500 is based on total revenue (not growth) and may include public and private companies. The Inc. 500 list is published in a special issue of Inc. Magazine in September of each year. 

In 2011, 37% of the Inc. 500 had corporate blog. This is a decrease of 13% from 2010. With 28% of the F500 companies hosting corporate blogs in 2012, that gap seems to be closing. It is particularly interesting to see a jump of 5% in blogging for the wealthiest companies while the most recent group of the fastest growing companies appear to be less likely to use blogs.

3a. Corporate Twitter Accounts

Three hundred sixty-five (73%) of the F500 have corporate Twitter accounts with a tweet in the past thirty days. This represents an 11% increase since last year. All of the top 10 companies (Exxon, Wal-Mart, Chevron, ConocoPhillips, General Motors, General Electric, Berkshire Hathaway, Fannie Mae, Ford Motors and Hewlett-Packard) consistently post on their Twitter accounts. 

Six of the 2011 F500 companies had Twitter accounts with no activity on them (Freeport McMoRan Copper & Gold, Medtronic, Sempra Energy, Sherwin Williams, Mattel and Owens Cornings). In 2012, searches revealed all six companies are now posting to their accounts. Medtronic has begun posting at least once a day, Freeport McMoRan, Sherwin-Williams and Mattel post at least once a week, Sempra Energy and Owens Corning post at least once a month.

3b. Corporate Twitter Accounts by Industry

The 365 corporations with corporate Twitter accounts come from all of the 71 industries represented in the F500. A partial list is presented below showing those industries with the greatest presence in the F500. The percent of corporations with Twitter accounts varies by industry.  The Food Consumer Products industry has 93% of their companies on Twitter.  Companies in the Specialty Retail industry and Aerospace industry have 86% of their companies on Twitter. Other industries listed have half or more of their companies using this tool while the Motor Vehicles industry has 44%. 

3c. Corporate Twitter Accounts by Rank

Rank appears to be less of an influence for the use of Twitter by the F500 than for the use of blogging. All the top 10 companies have corporate Twitter accounts. Forty-four percent of the Twitter accounts belong to the companies in the top 200 on the list, while 37% come from those ranked in the bottom 200.  Those ranked higher in the 2012 F500 are only slightly more likely to adopt Twitter than their lower ranked counterparts. 

3d. Corporate Twitter Followers

Google has the highest number of followers on Twitter among the 2012 F500, followed by Whole Foods Market, Starbucks, and Southwest Airlines.  Walt Disney had the largest increase in a year with 206,843 Twitter followers in 2011 to 1,289,222 followers in 2012 (84%). 

4a. Corporate Facebook Pages

Three hundred thirty-two (66%) of the F500 are now on Facebook. This represents an 8% increase since last year. Eight of the top 10 companies (Wal-Mart, Chevron, ConocoPhillips, General Motors, General Electric, Fannie Mae, Ford Motors and Hewlett-Packard) have Facebook Pages.  Exxon and Berkshire Hathaway do not.

4b. Corporate Facebook Pages by Industry

The 332 corporations with corporate Facebook pages come from 69 of the 71 industries represented in the F500. A partial list is presented on the next page showing those industries with the greatest presence in the F500. The percent of corporations with Facebook pages varies by industry.  Companies in the Specialty Retail industry have 89% of their companies on Facebook.  Telecommunications and Consumer Food Products industries have 80% and 86% with corporate Facebook pages.  Other industries listed have half or more of their companies using this tool while the Motor Vehicles industry has 44%. 

The industries with no companies on Facebook are Tobacco and Diversified Outsourcing Services.

Last year one hundred fifty-six companies (31%) had neither a Twitter account nor a Facebook presence. This year that number has dropped to one hundred fifteen companies (23%).

4c. Corporate Facebook Pages by Rank

Facebook pages among the F500 follow the same pattern of adoption by rank as Twitter. Forty-two percent of the top 200 have a corporate Facebook page while 40% of the bottom 200 use this tool.  Rank clearly impacts blogging more than it does either Twitter or Facebook.

4d. Corporate Facebook Fans  

Coca-Cola dominates for the second year with 42,226,297 fans. Walt Disney followed with 32,027,185 fans. Yahoo was not listed among the F500 last year. Walt Disney's and Intel's Facebook fans have more than quadrupled, while Yahoo's and Google's Facebook fans have more than doubled.

5.  New 2012 Corporations

The following table shows a partial list of corporations that have moved on to the 2012 list (from the “Fortune 1000” last year).

New Specialty Accounts and New Tools

In addition to the findings presented above, specialty accounts were recorded separately from corporate accounts. Though some F500 companies are not currently utilizing corporate accounts, they are using social media to engage their audiences in a variety of other ways. There is also evidence of new tools being added to the F500 arsenal.  Data was collected on the adoption and use of the online video site, YouTube, and the content sharing service, Pinterest.

6a. Specialty Blogs

One hundred thirty-nine corporate blogs were found in the 2012 F500, while there were 7 specialty blogs located. Specialty blogs include those focusing on the company career paths and hiring information, social responsibility and community causes. Companies with specialty blogs include State Farm Insurance Cos., Liberty Mutual Insurance Group and American Electric Power.

6b. Specialty Twitter Accounts

Three hundred sixty-five corporate Twitter accounts were found in the 2012 F500, while there were 17 specialty Twitter accounts located. Specialty Twitter accounts includes company career paths and hiring information, social responsibility and community causes. Companies in this category include J.P. Morgan Chase, WellPoint and TJX. 

6c. Specialty Facebook Pages

Three hundred thirty-two corporate Facebook pages were found in the 2012 F500, and there were 18 specialty Facebook accounts located. Specialty Facebook pages include those focusing on company career paths and hiring information, social responsibility and community causes. Companies in this category include Boston Scientific, General Mills and Health Net.

6d. New Tool: YouTube (video sharing site)

For the first time this year, corporate and specialty YouTube accounts were recorded. Three hundred and nine (62%) corporate YouTube accounts were found in the 2012 F500 and 4 specialty accounts. Specialty YouTube accounts includes those focusing on fundraising and education. Companies in this category include Aon, Peabody Energy, Hershey and Fifth Third Bancorp.

6e. New Tool: Pinterest (content sharing site)

Pinterest has grown in membership since its debut in 2010 and is beginning to show up in the F500. In 2012, 11 (2%) F500 companies were found to have Pinterest accounts. Companies include: General Electric; Lowe’s; Starbucks; Nordstrom; Whole Foods Market; Bed Bath & Beyond; Dollar Tree; Dillard’s; American Family Insurance Group; Eastman Kodak and Live Nation.

Conclusion

The 2012 Fortune 500 is warming up to the new communications tools that have taken so many other sectors by storm.  In the past year, these business giants have increased their adoption of blogging by 5%, their use of Twitter for corporate communications by 11% and their use of Facebook pages by 8%.  Sixty-two percent of the 2012 F500 have corporate YouTube accounts and 2% (11 companies) are posting on Pinterest.

It is obvious that there has been a surge forward in the adoption and use of social media and new communications tools among this year’s Fortune 500.  For years, this group has lagged behind other sectors and at times appeared to shun social media.  These latest numbers show a renewed interest that includes using these tools for engagement, hiring and fundraising as well as for corporate advancement.  It is exciting to watch as these corporate giants embrace social media in a way they have not in the past.  It will be interesting to see if their enthusiasm for social media continues.

Bios

Nora Ganim Barnes, Ph. D. 

Nora Ganim Barnes is a Chancellor Professor of Marketing and Director of the Center for Marketing Research at the University of Massachusetts Dartmouth. Nora has worked as a consultant for many national and international firms.  Working closely with businesses in the Northeast US, Nora and her students have provided marketing research assistance to hundreds of small businesses. She has published articles in academic and professional journals and proceedings, has contributed chapters to books, and has been awarded numerous research grants. Her work has been covered online and in print by Business Week, the NY Times, Washington Post, CNN, Reuters, Wall Street Journal, Fox News and Computer World among others. She has been named a Senior Research Fellow by the Society for New Communications Research. Nora can be reached at nbarnes@umassd.edu.  

Ava M. Lescault, MBA

Ava M. Lescault is Senior Research Associate and Associate Director of the Center for Marketing Research at the University of Massachusetts Dartmouth. Ava graduated from UMass Dartmouth with a BS in Marketing and a Master's Degree in Business Administration with a concentration in Marketing Research. She recently completed a Certificate in Marketing Research from the University of Georgia.  Ava has worked on approximately twenty-five extensive research projects and is a published author. Her clients include the cranberry industry, the shellfish industry, a national juice manufacturer, the Massachusetts Department of Agricultural Resources and a Fortune 500 company. She was the first person to hold the position of Senior Research Associate in the Center. Ava can be reached at alescault@umassd.edu.

Justina Andonian

Justina Andonian is a graduate student at the University of Massachusetts Dartmouth. She has worked for the Center for Marketing Research for the past 3 years as a Data Collection Assistant and Social Media Manager. Justina received recognition by Masters In Advertising, a blogging site, after UMass Dartmouth Center for Marketing Research Blog was ranked #29 on their top 50 up and coming branding blogs. Justina has worked on several studies that involved social media usage of the Inc. 500, higher education, and top charities. She can be reached at jandonian@umassd.edu.

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