What’s your Facebook fan worth?

What’s your Facebook fan worth?

facebook-fanAccording to a recent study released by Vitrue last week, Facebook Fans are valued at $3.60 each in earned media for brands. Not everyone was happy with the study and a few even poked holes in the formula and assumptions made.  I also wrote about it here if you’re interested. Despite the formula flaws, I do think it’s a good start to something many marketers are looking for – i.e. what’s the return on investing budget and human capital on a Facebook fan page? In fact, working on the brand side for many years, this question arises daily.  And, the reality is that we may never know the true value of a fan because human behavior changes all the time and technology isn’t quite there yet; not to mention the possible privacy implications.  I do feel that calculating fan value needs to involve more than just impressions.  For now though, I am okay with that.

Here is a quick recap of the formula used to calculate the valuation:

1M impressions x 2 posts x 30 days = 60M impressions
60M impressions / 1000 x $5 CPM = $300,000
$300,000 x 12 months = $3.6M
$3.6M / 1M fans = $3.60

Using this same formula, I did some quick research and found 10 high profile brands and calculated their fan value. You will be surprised and some of the results:

  • Coca Cola – $0.96 cents (5.3M fans and posted 16x in the last month)
  • Youtube – $1.92 (4.8M fans and posted 32x last month)
  • Pringles – $.030 (3.1M fans and posted 5x last month)
  • Adidas – $2.40 (2.7M fans and posted 40x in the last month. Also sharing links to their e-commerce store so one would assume that their fan value is much higher)
  • Red Bull – $1.14 (2.5M fans and posted 19x in the last month)
  • Starbucks – $1.20 (6.8M fans and posted 20x in the last month)
  • Pizza Hut – $0.30 (1.2M fans and posted 5x in the last month)
  • McDonalds – $0.24 (2.1M fans and posted 4x in the last month
  • NBA – $8.22 (2.1M fans and postes 137x in the last month; but this makes sense since it’s the Playoffs.  I am sure the value of fans decreases in the off season)
  • PUMA – $0.84 (1.5M fans and posted 14x in the last month

Now for those of you who are deficient in math like myself, you will notice that the value of each fan is solely based on the assumed $5 CPM and the frequency of monthly posts.  The value doesn’t change if you have 50,000 fans or 6,000,000 fans.

Also, in analyzing each of each of these fan pages, I am most impressed with the NBA.  They are doing polls, asking questions, posting videos; wallpaper downloads, linking to their e-commerce store, and their fans are extremely engaged.

If you work for a brand and have a stagnant fan page or if you are thinking about launching one; here are few pointers which might be useful.

Disclosure: Starbucks is an Edelman client.

About Michael Brito

Michael Brito has been making things happen online since 1996 with a legit hustle. He gets mad when the 49ers lose, really mad. Feel free to follow him on Twitter.

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    Nice one. I have stumbled and twittered this for my friends. My friends will enjoy reading it also.

  • http://twitter.com/matthewzinda Matthew Zinda

    I saw this post somewhere else also. If you are a marketer, this is very important information to know. Yes, it is a little rough around the edges, and not extremely accurate. But, it gives a marketer an idea of how much time, and money, to put into marketing on Facebook.

    I, just now, ran into this blog. I must say I like it, because you are not afraid to dive into any internet marketing issue. Actually, making a controversial post will help you, as you will get a buzz around your post.

    One piece of advice coming from your newest reader, so take it as you will. I think all blogs should take a page out of Lynn Terry's book, a successful blogger, owner of Clicknewz. She actually encourages her readers to make a comment with “your name @ your keyword” in the name section of your comment, creating an anchor text directly back to the readers website or blog, not to there twitter, or facebook page.

  • Meaghan Roberts

    I found this to be enlightening! How many brands really think about their fans and what they want. I find that social media is easy to use, but it is not always used in a productive manner. Brands still need to remember what their fans would like when using social media. It is a great quesiton to ask, how do you put a value on your fans? Thanks for the insight!

  • http://www.seomarketingireland.eu/ Patrick Long

    Thank you for this information! Now the question is how to keep your fans engaged. It's surely a case by case basis but yes, businesses can learn a lot from NBA's methods. What are your suggestions?

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    Social media can be very powerful if used in the correct way. Utilizing the 'fan' pages more could lead to a lot more benefit for companies. Social media is only one part to online marketing though, and a new one at that.
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    As for now I'm just as happy not dealing through Face Book.

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    That is an interested formula. I am not a huge fan of facebook to drive potential customers to my sites anyway. I believe it is too much work for very little return. Maybe I am not doing it right, but I haven't seen the money flow in from Facebook.

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    Excellent Post , Thanks for sharing great stats its really necessary to consider this points while making a fan page for Facebool…

    Didn't had any idea how much can worth the Facebook Fan Page … this was a new investigation for me !

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    Wow! That’s interesting, now I know why there’s so many fan page groups. 

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