However, it’s more difficult to calculate ROI on social media marketing because post impressions, Likes and comments can’t always be directly tied to dollar and cents. Many have tried and here are some interesting results:
- Last summer, Syncapse found the value of a Facebook fan to be approximately $136.38.
- Earlier, Mashable calculated that a Facebook fan was worth approximately $3.60.
Although all these numbers, formulas and stats are interesting, I don’t think that most local businesses can benefit from these facts. In fact, obsessing over these numbers could really distract from your marketing strategy. To me, this is like focusing on SEO ranking reports without looking at other factors, such as search volume.
Like many other forms of online advertising, Facebook marketing can’t just be analyzed through one factor because one of the most important ones is pretty intangible and that is potential.
That’s why I found this recent study by Hitwise to be so interesting. According to the study focusing on retailers, 1 Facebook fan means about 20 additional visits to your website over the course of one year. I find this to be useful because it comes from another angle on website traffic and doesn’t focus so much on the $$$. This study also puts customer loyalty into perspective and that is also another important factor that you can improve by using social media.
Do you think these numbers and studies about the value of a Facebook Fan really hold true? In the end, it’s about how much your Facebook fans matter to you and what you want to do about it.