What is the Dollar Value of a Fan on Facebook?
mariagudelis | April 22, 2010
Maybe this will help justify your marketing budget for putting up a facebook fan page. Adweek came out with a very interesting article last week estimating the value of a Facebook fan.Read the article here… This study shows that, on average, a fan base of 1 million translates into at least $3.6 million in equivalent media over a year.
This means each fan is worth approximately $3.60 of equivalent media, or what you would be spending on traditional advertising to expect to generate the same marketing outcome.
To obtain these numbers, they analyzed Facebook data from a collection of large and small brand Fan Pages, with a combined 41 million fans, and showed that on average marketers who post twice a day are are capable of achieving monthly impressions of around 1.5 times their number of fans (i.e. 60 million monthly impressions yielded from a fan base of 41 million fans).
An “impression” is the equivalent of one ad view and, accordingly to the study, an impression using paid advertising generally costs around $5 per 1000 impressions. So according to the calculations in the study, a fan page owner that has 10,000 fans and posts content to their page twice a day, can expect that they’ll receive around $36,000 in ‘advertising’ value from these fans. In other words, if this fan page owner were to try to achieve the same level of exposure for her brand during the year, she’d have to spend around $36,000.
So… burning question. What does this mean for you?
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Are you saying it is cheaper to advertise in Facebook? Then again one of the problems is getting people to be a fan of your page. Also, didn't Facebook already change "fan" to "like" not too long ago?
Twitter: mariagudelis
says:
Yes – we teach all that in our social media certification program – check it out! Cheers, Maria
Never thought about the value of a fan on facebook is something that you will benefit in the near future, that's kind of new for me. Well as we all know there is nothing impossible now over the internet and still growing.
Great Info–Thanks again for the ammo.
This helps stop the question–"How do you measure ROI?"
Twitter: mariagudelis
says:
Thanks Keith – yes it is great for the ROI for a facebook fanpage or now “likepage”!
I can believe this, the most important thing to remember is to build a good relationship with your fans.
Comment on their status, share their content, use the chat feature to say hey from time to time.
And most importantly don't always be pushing your product down their throats. It's about relationships and networking.
Twitter: saundrajackson
says:
Maria,
Too me it means more revenue and a better reason to get all my clients on the Fan Page wagon. Thank you so much for being you. Keeping it real.
Twitter: mariagudelis
says:
Thanks Saundra! Keeping it Real is what it it all about!
Cheers, Maria
Twitter: http://www.marketinghuddle.com
says:
Maria
Do you know how to get fans of our FaceBook Fanpage to be notified of recent activity like we are able to on our regular Facebook fans?
Mike Saunders, MBA
Author of: "The PRISM Salvation-a 3-Step Solution to Social Media Domination for Busy Business Owners"
Available on Amazon in May!
Get the 1st Chapter here:
http://www.ThePrismSalvation.com/Book
Twitter: mariagudelis
says:
Hi Mike,
From Facebook:
How do I update my fans?
Page Admins can update their fans about new Page content, promotions,…
Page Admins can update their fans about new Page content, promotions, upcoming events, and more. Pages can send messages to either their entire fan base or target their update to fans in a specific demographic. The messages Pages send their fans will appear in the “Updates” tab of a user’s Inbox.
-trish