Alexander Babbage Shopping Center Industry Social Media Benchmark

Shopping Center Social Media Benchmarks Year-End 2013

REPORT CREATORS

Alexander Babbage continually monitors social media activity and consumer behaviors in the shopping center industry with benchmarks published annually. For more information about comparing your center or portfolio to benchmarks, contact:

Alan McKeon at 404-961-7602 or [email protected]

Charlotte Sykes at 404-961-7603 or [email protected]

Kyle Kirchhof at 404-961-7615 or [email protected]

Alexander Babbage, Inc. is an Atlanta based full-service research firm specializing in experiential research for destinations including shopping centers, professional sports teams, retailers, restaurants, the arts and financial institutions. It has the deepest experience and most extensive benchmark set among private research providers and is the shopping center industry’s leading provider of market and shopper research.

The Social Media database compares 1,776 shopping centers of 300,000 square feet or more in the United States including Alaska, Hawaii and Puerto Rico. Data and counts are effective as of December 2013.

Shopping Center Social Media Benchmarks Year-End 2013

Contents Summary Analysis ...... 3 In This Report ...... 4 Database Synopsis ...... 4 Findings ...... 5 Facebook Penetration ...... 5 Facebook Likes ...... 6 Twitter Penetration ...... 8 Twitter Followers ...... 8 Social Media Engagement (Klout) ...... 10 Early Adopters ...... 11 Glossary of Terms...... 14 Center Type ...... 14 Social Media Terms ...... 14 Management Company Affiliations ...... 15

Shopping Center Social Media Benchmarks Year-End 2013

Summary Analysis The end of 2013 showed that growth in social media use among shopping centers has plateaued, and by some measures, adoption rates began to decline. Year-end 2013 data revealed that 67% of shopping centers use Facebook, which is down from 71% compared to year-end 2012; and 57% use Twitter, which is down from 58% from year-end 2012.

Although the number of centers using these platforms has decreased, the content they are sharing is more engaging and is increasing shopper interaction. The average number of Facebook Page Likes rose 34% from 10,329 in 2012 to 13,820 in 2013. The total number of Likes for the industry in 2013 was 17.2 million, up 6 million from 2012. As of year-end 2013, there were 1.4 million Twitter followers for the shopping center industry, which was up from nearly 1 million at the end of 2012. This averages 1,573 Followers per center for 2013.

Individual center Klout Scores were analyzed to compare against their overall Klout score, scores with the most Facebook Page Likes, and scores with the most Twitter Followers. The content centers use to engage their shoppers must be interactive enough to be shared among other shoppers’ connections. Shopping centers with a lower number of Likes or Followers can boost their Klout by creating content that generates a high level of engagement.

There was notable early adoption of new forms of social media in the shopping center industry during 2013. Instagram was adopted by 292 shopping centers which resulted in 164,375 shoppers who shared pictures and engaged with their favorite shopping centers. The platform known as Pinterest, which involves sharing information and pictures in categorized interests, was added by 155 shopping centers. Only 109 shopping centers have featured a Google+ account while 232 shopping centers have implemented a form of Mobile Club to reach their shoppers using text messages.

Social media is the preferred source of information for Generation Z and Millennials. Leveraging an effective social media strategy will be critical to shopping centers if they want to engage and build profitable and meaningful relationships with their shoppers.

Shopping Center Social Media Benchmarks Year-End 2013

In This Report The Year-End 2013 Shopping Center Social Media Benchmark Report provides a gauge for you to understand how your center’s (or portfolio’s) social media efforts compare with that of the shopping center industry. Here you will find a ranking for industry leaders for Facebook Likes and Twitter Followers, and you will see who grew their social media footprint in 2013 compared to 2012. And perhaps even more importantly – you will see how your peers strengthened their social engagement – not only through Facebook and Twitter, but through new initiatives such as Pinterest and mobile clubs.

Database Synopsis The Year-End 2013 Shopping Center Social Media Benchmark Report features data gathered from 1,776 shopping centers – including nearly 1,200 regional and super-regional centers in all 50 U.S. states plus Puerto Rico.

Center Type (300,000 square feet or larger) 2011 2012 2013 Super Regional Centers 26% 26% 24% Regional Centers 46% 46% 43% Lifestyle Centers 22% 22% 26% Entertainment Centers 1% 1% 1% Value Centers 5% 5% 6%

Using Using Using Using Using Using Facebook Facebook Facebook Twitter Twitter Twitter Center Type 2011 2012 2013 2011 2012 2013 Super Regional Centers 83% 87% 87% 72% 75% 78% Regional Centers 58% 64% 60% 45% 48% 48% Lifestyle Centers 60% 65% 56% 47% 51% 47% Entertainment Centers 69% 69% 63% 56% 63% 63% Value Centers 89% 89% 80% 83% 83% 74% Total Industry 67% 71% 67% 55% 58% 57%

Value centers were the early adopters for both Facebook and Twitter in 2011, while regionals and super- regionals were slower to come onboard. As of year-end 2013, super-regional centers have eclipsed all other center types in their use of both Facebook and Twitter. Without the growth among super- regionals, the overall industry use of Facebook and Twitter would be below 2011 levels.

Shopping Center Social Media Benchmarks Year-End 2013

Findings

100% Shopping Centers Using Facebook and Twitter

80% 72% 68% 67% 58% 55% 57% 60% 54% 45% 40%

20% Facebook Twitter

0% 2010 2011 2012 2013

100% Percent Change in Shopping Center Facebook and Twitter Use 80% 71% 67% 58% 57% 60%

40% 6% 2% 20% 2012 2013

0% Facebook Twitter

Facebook Penetration The shopping center industry ramped up its use of both Facebook and Twitter between 2010 and 2012, but penetration plateaued in 2012 and – mostly driven by a decrease in use among Value Centers – the use of both mediums saw an industry-wide decrease in 2013. Nevertheless, more than two-thirds of all shopping centers rely on Facebook as their primary social media tool.

Shopping Center Social Media Benchmarks Year-End 2013

100% Shopping Centers Using Facebook by Center Type

80%

60%

40%

20%

0% 2010 2011 2012 2013 Super Regional Centers Regional Centers Lifestyle Centers Entertainment Centers Value Centers Total Industry

Facebook Likes As evidenced by the growth in the number of Likes across all shopping center types, marketing teams put a significant focus on shopper engagement in 2013. The growth in Likes among super-regional centers is particularly noteworthy given the growth in the number of centers that added Facebook in 2013.

While Plaza Las Americas still holds the top spot with more than 489,000 Likes – and growing – three centers moved onto the Top 20 List for the first time. Sawgrass Mills saw a surge in Facebook Likes from 2012 to 2013, and as a result, moved onto the Top 20 List with more than 107,000 Facebook Likes. In addition, Pike Place Market (205,923 Likes) and Hollywood & Highland Center (82,254 Likes) are both Top 20 newcomers.

Average Number of Facebook Page Likes Per Center Percent Change Center Type 2011 2012 2013 2012 to 2013 Super Regional Centers 7,412 15,062 22,050 46% Regional Centers 2,480 5,560 7,268 31% Lifestyle Centers 4,566 7,674 11,232 46% Entertainment Centers 18,698 43,049 71,839 67% Value Centers* 6,145 7,836 16,533 111% Total Industry Average 4,895 10,329 13,820 34%

* Tanger Outlets and Premium Outlets are excluded from this count because all branded centers share the same social media platforms creating outliers.

Shopping Center Social Media Benchmarks Year-End 2013

Top 20 - Number of Facebook Page Likes GLA % change Rank Rank Center Square Facebook Facebook 2012 to 2013 2012 Center Name Management Company Type Feet Likes 2012 Likes 2013 2013 1 1 Plaza Las Americas Plaza Las Americas, Inc. SR 2,174,000 432,874 489,283 13% 2 2 Mall of America Triple Five Corp. SR 4,200,000 421,151 456,531 8% 3 3 Universal CityWalk Universal CityWalk EC 400,000 160,983 261,776 63% 4 N/A Pike Place Market Pike Place Market PDA LC 1,000,000 N/A 205,923 N/A 5 4 The Cosmopolitan 3700 Associates, LLC LC 300,000 124,810 196,191 57% 6 5 Westfield Valley Fair Westfield LLC SR 1,477,679 102,728 128,393 25% 7 17 Florida Mall Simon Property Group, Inc. SR 1,769,207 55,603 121,515 119% 8 16 Seminole Paradise Seminole Properties Retail EC 350,000 55,708 120,201 116% 9 6 King of Prussia Mall Simon Property Group, Inc. SR 2,690,922 85,653 113,426 32% 10 7 The Houston Galleria Simon Property Group, Inc. SR 2,221,000 85,411 111,152 30% 11 18 Bal Harbour Shops Bal Harbour Shops RC 520,000 55,372 109,521 98% 12 8 Westfield Garden State Plaza Westfield LLC SR 2,178,402 80,943 108,347 34% 13 32 Sawgrass Mills Simon Property Group, Inc. SR 2,153,000 40,522 107,134 164% 14 9 Downtown Disney Walt Disney Parks & Resorts EC 300,000 74,394 102,187 37% 15 12 Memorial City Mall Memorial City Mall, L.P. SR 1,700,000 65,121 92,189 42% 16 10 Ontario Mills Simon Property Group, Inc. SR 1,365,440 67,972 90,610 33% 17 13 The Grove Caruso Affiliated LC 575,000 62,183 89,493 44% 18 11 Westfield Culver City Mall Westfield LLC SR 1,059,699 67,534 85,510 27% 19 21 Westfield Topanga Westfield LLC SR 1,637,088 50,642 84,366 67% 20 23 Hollywood & Highland Center CIM/H&H Retail, L.P. EC 640,000 44,679 82,254 84%

* Tanger Outlets and Premium Outlets are excluded from this count because all branded centers share the same social media platforms creating outliers.

Shopping Center Social Media Benchmarks Year-End 2013

Twitter Penetration With the exception of super-regional centers, the number of centers using Twitter remained at or below 2012 levels signaling a potential pause point to gauge – and perhaps refine – the role of this communications tool relative to other emerging mediums such as Instagram and Pinterest.

90% Percent of Centers Using Twitter by Center Type 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013

Super Regional Centers Regional Centers Lifestyle Centers Entertainment Centers Value Centers Total Industry

Twitter Followers The Lifestyle Center category led the way in 2013 for growth in the number of Twitter Followers. Half (50%) of centers on the Top 20 List are Lifestyle Centers. The top ranked center – The Cosmopolitan – saw extremely strong growth of 120% boosting its number of Followers to more than 200,000. But the other 19 centers on the Top 20 Followers List rank far behind The Cosmopolitan with 18 of them having fewer than 30,000 Followers each. Only two Regional Centers (Americana at Brand and Bal Harbour Shops) made the Top 20 List in 2013.

Four centers – two of them in Kansas City – moved onto the Top 20 List for the first time in 2013. Pike Place Market in Seattle ranks fifth for the number of Twitter Follower with nearly 25,000, while Country Club Plaza and Kansas City Power & Light rank 12th and 15th with approximately 10,000 Followers each. Town Square Las Vegas (8,174 Followers) also made the Top 20 List moving from 35th in 2012 to 18th in 2013.

Shopping Center Social Media Benchmarks Year-End 2013

Average Number of Twitter Followers Percent Change Center Type 2011 2012 2013 2012 to 2013 Super Regional Centers 558 827 1,189 44% Regional Centers 290 487 575 18% Lifestyle Centers 1,313 2,380 3,361 41% Entertainment Centers 3,075 4,934 6,439 31% Value Centers* 812 890 1,175 32% Total Industry 644 1,124 1,502 34%

* Tanger Outlets and Premium Outlets are excluded from this count because all branded centers share the same social media platforms creating outliers.

Top 20 - Number of Twitter Followers GLA Twitter Twitter % change Rank Rank Center Square Followers Followers 2012 to 2013 2012 Center Name Management Company Type Feet 2012 2013 2013 1 1 The Cosmopolitan 3700 Associates, LLC LC 300,000 108,423 239,044 120% 2 2 The Grove Caruso Affiliated LC 575,000 49,415 75,307 52% 3 4 Mall of America Triple Five Corp. SR 4,200,000 20,310 29,211 44% 4 5 Universal CityWalk Universal CityWalk EC 400,000 17,999 25,910 44% 5 N/A Pike Place Market Pike Place Market PDA LC 1,000,000 N/A 24,938 N/A 6 6 Atlantic Station Town Center North American Properties LC 586,296 13,729 22,513 64% 7 8 Ala Moana Center General Growth Properties, Inc. SR 2,100,000 11,141 14,007 26% 8 9 The Americana at Brand Caruso Affiliated RC 600,000 9,485 12,410 31% 9 10 Patriot Place Strategic Retail Advisors LC 1,300,000 9,194 12,198 33% 10 15 NorthPark Center NorthPark Management Company SR 2,000,000 6,852 11,240 64% 11 7 Bal Harbour Shops Bal Harbour Shops RC 520,000 12,430 11,167 -10% 12 32 Country Club Plaza Highwoods Properties LC 900,000 4,480 10,275 129% 13 11 Opry Mills Simon Property Group, Inc. SR 1,166,379 8,290 9,719 17% 14 16 The Houston Galleria Simon Property Group, Inc. SR 2,221,000 6,591 9,686 47% 15 24 Kansas City Power&Light District The Cordish Company LC 500,000 4,849 9,572 97% 16 12 Crystals at CityCenter MGM Resorts International LC 500,000 8,278 9,450 14% 17 13 Gilbert Town Square Triple Five AZ Development Corp. EC 500,000 8,187 9,213 13% 18 35 Town Square Las Vegas Forest City Enterprises LC 1,648,530 4,383 8,174 86% 19 14 Dana Park Village Square Triple Five AZ Development Corp. LC 400,000 7,757 8,167 5% 20 18 Pearlridge Center BRE/Pearlridge LLC SR 1,300,000 6,034 8,100 34%

Shopping Center Social Media Benchmarks Year-End 2013

Social Media Engagement (Klout) The number of Facebook Likes and the number of Twitter Followers alone do not determine a center’s social media influence; rather, it is the number of Likes and Followers (as well as other forms of social engagement) in combination with ACTIVITY within the mediums that determines a center’s overall impact or their “social footprint.” As evidence, six of the Top 20 centers as ranked by KLOUT score are not on either the Top 20 for Facebook Likes or Twitter Followers, but the social media activity these centers generate have the effect of boosting their KLOUT score above 60, ranking them among the most socially powerful centers in the industry. These six over-achieving centers are Fashion Island, Aventura Mall, Forum Shops at Caesars, Frisco Square, The Shops at Park Lane, South Bay Galleria and CityCentre.

Top 20 - Overall Klout Scores Rank GLA Square Klout 2013 Center Name Management Company Center Classification Feet Score 1 Mall of America Triple Five Corp. Super-Regional Center 4,200,000 87 2 Atlantic Station Town Center North American Properties Lifestyle/Specialty Center 586,296 84 3 Pike Place Market Pike Place Market PDA Lifestyle/Specialty Center 1,000,000 81 4 The Grove Caruso Affiliated Lifestyle/Specialty Center 575,000 80 5 Seminole Paradise Seminole Properties Retail Entertainment Center 350,000 79 6 The Americana at Brand Caruso Affiliated Regional Center 600,000 78 7 Bal Harbour Shops Bal Harbour Shops Regional Center 520,000 77 8 The Cosmopolitan 3700 Associates, LLC Lifestyle/Specialty Center 300,000 72 9 Pearlridge Center BRE/Pearlridge LLC Super-Regional Center 1,300,000 71 10 Ala Moana Center General Growth Properties, Inc. Super-Regional Center 2,100,000 70 11 Fashion Island The Irvine Company Super-Regional Center 1,200,000 69 12 Aventura Mall Turnberry Associates Super-Regional Center 2,099,768 68 13 Universal CityWalk Universal CityWalk Entertainment Center 400,000 67 14 Opry Mills Simon Property Group, Inc. Super-Regional Center 1,166,379 67 15 Forum Shops at Caesars Simon Property Group, Inc. Lifestyle/Specialty Center 675,000 65 16 Frisco Sq./MarketPl at Frisco Sq. Frisco Square Development Lifestyle/Specialty Center 500,000 65 18 The Shops at Park Lane Northwood Investors Lifestyle/Specialty Center 600,000 64 19 South Bay Galleria Forest City Commercial Management Regional Center 959,247 64 20 CityCentre Midway Lifestyle/Specialty Center 649,827 64

Shopping Center Social Media Benchmarks Year-End 2013

Early Adopters The shopping center industry began to embrace Instagram and Pinterest in 2012, but centers have been much slower to adopt these communications channels. At year-end 2013, 16% of all centers had an Instagram account and fewer still 9% had a Pinterest account. Perhaps not so coincidentally, the top three centers for Pinterest Followers (The Cosmopolitan, The Grove and Pike Place Market), also rank 1, 3 and 5 respectively for the number of Twitter Followers.

The integration of Mobile Clubs has been adopted by 13% of all shopping centers to communicate with their shoppers directly via text messages. The driving forces behind this adoption rate are Super Regional and Regional shopping centers, accounting for 85% of the adoption rate.

Shopping Center Social Media Benchmarks Year-End 2013

Glossary of Terms

Center Type Super Regional Center [SR] – Similar to a Regional center, but because of its larger size, a Super Regional center has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with Regional centers, the typical configuration is an enclosed mall, frequently with multi levels Regional Center [RC] – This center type provides general merchandise (a large percentage of which is apparel) and services in full depth and variety. Its main attractions are its anchors: traditional, mass merchant, or discount department stores or fashion specialty stores. A typical Regional center is usually enclosed with an inward orientation of the stores connected by a common walkway and parking surrounds the outside perimeter Lifestyle Center [LC] – Most often located near affluent residential neighborhoods, this center type caters to the retail needs and “lifestyle” pursuits of consumers in its trading area. It has an open-air configuration and typically includes retail space occupied by upscale national chain specialty stores. These center may or may not be anchored by one or more conventional or fashion specialty department stores Value Center [VC] – A center that includes outlet tenants as well as superstores, catalog, retail clearing houses, off- price or discounters, and food vendors Entertainment Center [EC] – A shopping center that encompasses theaters, restaurants and related retail

Social Media Terms Board – A Pinterest term referring to a collection of pins of similar interest Check-in – When a shopper uses a platform that has the ability to geo-tag their location and share it with other users Facebook – A publication for an organization, such as a school or business, which helps members identify each other; also, an online version of this, with profiles including a picture, name, birth date, interests, etc. Facebook Page – Pages are for businesses, organizations and brands to share their stories and connect with people Facebook Page Like – An action performed by Facebook members on a business, brand or product Page. Liking a page allows the member to connect to the business, brand or product [formerly known as a Facebook “Fan”] Follow – To follow someone on Twitter means to subscribe to their Tweets or updates on the site Follower – A follower is another Twitter user who has followed you FourSquare – A social media platform with geo-tagging capabilities for users to check-in and share it with other shoppers and obtain information about destinations Google+ - A social media platform where users can connect and share information with contacts organized in groups of their preference Instagram – A photosharing application on mobile devices Klout – The Klout Score, a number between one and 100, is a representation of overall social media influence. It is a calculated number based on online activity that allows us to report on a center’s ability to interact with and influence those with whom they connect. Actions used to measure influence include Twitter re-tweets and mentions; Facebook comments, wall posts, and likes, LinkedIn comments, likes; Foursquare tips, to-do’s, done; and Google + comments, re-shares, +1 (a way to indicate your public stamp of approval on Google+) Mobile Club – A platform where shoppers can subscribe their cell phone numbers to a shopping center to receive text messages about shopper center promotions or other information Pin(s) – A Pinterest term referring to a picture, interest or thought posted by an account user © 2014 Alexander Babbage, Inc. All Rights Reserved 14 www.alexanderbabbage.com

Shopping Center Social Media Benchmarks Year-End 2013

Pinterest – A mobile application and website that allows users to share interests and ideas about similar topics Post – The act of a user sharing a thought, picture, or information on Facebook, Twitter, or Instagram Twitpic – An image uploaded to a user’s newsfeed on Twitter Twitter – An information network made up of 140-character messages, typically sent as text messages Tweet – A message posted via Twitter containing 140 characters or fewer Yelp – A social media platform and website that allows shoppers to read and write reviews about destinations YouTube – A social media platform where users can watch and share videos of interest with each other

Management Company Affiliations

Management Company Aggregated by

CBL & Associates Properties CBL & Associates Properties, Inc. , CBL RM-Waco LLC

CB Richard Ellis CB Richard Ellis, CBRE Louisville, CBRE/MEGA

Forest City Enterprises, Forest City Commercial Management, Forest City Forest City Management, Forest City Ratner Companies

General Growth Properties General Growth Properties, Inc., c/o Grand Teton Mall

Inland Southwest Management, Inland American Retail Mgmt LLC, Inland Inland Commercial Property Mgmt, Inland Pacific Property Svcs LLC, Inland US Management LLC, Inland Continental Property Mgmt.

RED Development RED Development , RED Asset Management, Inc.

Simon Property Group, Inc., Simon Property Group (Chelsea), Kravco Simon Simon Property Group Company, Premium Outlets

The Pyramid Companies The Pyramid Companies, c/o Aviation Mall

Vornado Realty Trust Vornado Realty Trust , Vornado/Charles E. Smith

Shopping Center Social Media Benchmarks Year-End 2013

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