You're worth every penny
You’re probably a fan of at least a handful of brands and/or products on Facebook, and that’s because you’re truly fond of them. But have you ever wondered how much your virtual support is actually worth to these companies? Vitrue, an Atlanta-based social media management company, has calculated the exact value of a Facebook fan. Let’s see how they developed the Facebook Fan Valuation:
Vitrue manages over 45 million fans and sampled data across varying pages from digital entertainment to retail to B2B to CPG to publishers to quick serve restaurants—in order to determine a wall post impression to Fan ratio. In other words, how many impressions can a single wall post receive? To our surprise we learned the average was approximately 1:1 (0.96:1 to be exact). This means our 1 million Fan Facebook Page can average 1 million impressions with a single post to the wall. Factor frequency; a two post per day strategy would garner approximately 60 million impressions per month. Now here’s a metric all marketers are familiar with – we’ve been buying impressions since the dawn of the Internet.
These impressions are practically free, similar to earned media – that we are all familiar with. So our last step is to place a CPM value to our earned media. We factored a very conservative $5 CPM – how much would you pay for highly targeted impressions?
This final assumption gives our 1 million fan page $300,000 in earned media per month or $3.6 million annually.
1M impressions x 2 posts x 30 days = 60M impressions
60M impressions / 1000 x $5 CPM = $300,000
Don’t get snobbish yet and appeal to your favorite brands for a cheque. You’re worth $3.60. That’s about the price of a Grande Mocha at Starbucks. Come to think of it, we’re fans of Starbucks on Facebook! A free coffee would be nice.
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