Facebook Fans Worth 20 Yearly Site Visits, $136 A Piece?

 

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Thursday, June 23, 2011 Theories about the value of individual Facebook fans What is a Facebook fan worth? It's a question that many have attempted to answer. These answers are often greatly debated. Can you place a set value on a Facebook fan? The latest attempt comes from Experian Hitwise. "We are constantly asked: 'What's the ROI with advertising on Facebook?' and until now that has always been a difficult question to qualify precisely," says the firm's Research Director in the UK, Robin Goad. "Leveraging our unique data sets we now have an answer: for retailers, each new fan acquired on Facebook is worth 20 additional visits to your website over the course of a year." How much is a Facebook fan worth? Tell us what you think. "Our data shows that for the top retailers, even if they have no Facebook fans they can still expect to receive on average 62,000 visits from Facebook each month," says Goad, plugging a new service the firm is offering, called Facebook Fan Acquisition and Analysis. "Within retail each new fan acquired will drive an additional 20 visits to a retailer's websites, which in turn will generate extra sales both online and offline." "The figure of 1 fan = 20 extra visits to a website uses a unique methodology that combines Hitwise data with data from Techlightenment," he says. "We took the top 100 retailers ranked in the Hitwise Shopping and Classifieds category and benchmarked visits to those websites against the number of fans those brands had on their Facebook page. We then also looked at the propensity for people to search for those retail brands after a visit to Facebook using our Search Sequence tool." A study (about a year ago) from Syncapse found that people who are Facebook fans, on average, spend $71.84 more per year on brands they are fans of than those who are not fans. In addition to that, they're 28% more likely than non-fans to continue using that brand. Michael Scissons, the CEO of Syncapse, talked about the study on the Fox Business Network: He says a Facebook fan is worth $136.38, taking into account factors like spend, loyalty, recommendations, earned media value, and cost offset for fan acquisition. Back in February, a report released by ChompOn (which just partnered with Loopt its interesting new u-Deals offering), proclaimed that a Facebook Share was worth $14, while a Facebook "Like" was worth $8. That's compared to a tweet being worth $5 and a Twitter follow being worth $2. "For shares and tweets, we were able to directly attribute sales to the original action, so we simply took the total revenue attributed to each action and divided it by the total number of shares/tweets," the firm said. "For likes and follows, we had to estimate attribution by looking at our traffic references and subtracting out purchases made through shares/tweets as well as purchases made through direct traffic." Last year, a study from Virtue found that Facebook fans are valued at $3.60 each in earned media for brands. The study was debated, but interesting nonetheless. "Despite the formula flaws, I do think it's a good start to something many marketers are looking for â€" i.e. what's the return on investing budget and human capital on a Facebook fan page?" wrote Yahoo Sr. Manager of Community Marketing Michael Brito in an article we ran about the study. "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." Brito took the formula used to come up with that valuation, and ran it for some major brands at the time. Based on this, Coca-Cola fans were wroth $0.96 a piece. YouTube fans were worth $1.92, Adidas fans were worth $2.40. NBA fans were worth a whopping $8.22. The formula used went like this: 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 What's a Facebook fan worth to you? Let us know in the comments. What are your thoughts? Comment Now... Subscribe to our Newsfeed About the Author: Chris Crum has been a part of the WebProNews team and the iEntry Network of B2B Publications since 2003. Follow WebProNews on Facebook or Twitter. Twitter: @CCrum237

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