How Much Are Your Company's Facebook Fans Worth?

Posted: April 22, 2013 by Courtney Iovanovich

For years, marketing agencies have stressed the importance of Facebook to businesses. There are a variety of ways to measure Social Media ROI, but how much is a fan really worth?

Facebook has been the dominating leader in social networking since its start in 2004. From the introduction of Pages, to the new graph search, Facebook continues to create unique experiences for businesses to reach consumers. Since 2010, the value of a Facebook fan has increased by 28%. According to Syncapse, a Facebook fan is worth $174.17.

To calculate the average worth of a fan, Syncapse used 6 factors:

1. Product spending – the difference in spending habits on each brand within the category

2. Loyalty – the consumer intention to keep purchasing the brand in the future

3. Propensity to recommend – how likely word-of-mouth recommendations lead to future sales

4. Media value – efficiencies of earned reach and frequency

5. Acquisition cost – how effectively fans entice others to participate and drive organic membership

6. Brand affiliation – the perceived brands’ personality felt by fans

Most of the companies that participated in the study had over 15 million fans, so these amounts may not correlate for smaller businesses. That doesn’t mean these results are meaningless.

Syncapse’s study noted several key finds, but stresses the importance of two-way communication between businesses and consumers.

“Facebook fans and social media intelligence must be at the center of a brand’s overall marketing strategy. The key to smarter marketing – including better planning, execution and measurement—lies in social marketing and big data expertise, tools and infrastructure, and new marketing models that embrace social. Business now is social.”

Click here to download the entire whitepaper.

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