The Increasing Worth of a Facebook Fan

In 2010, the average worth of a Facebook fan was valued to be at $136.38, according to a study by Syncapse. This week, the company released another study which revealed that the average Fan is worth $174… and that price is climbing!

Spending and Making Money
The study also shows that in 2012, Facebook made about $5.089 billion in revenue, which comes out to about $5.32 per user. That revenue is coming from businesses, who are finding it to be increasingly profitable to their business and brand to invest in engagement through Facebook.

Study Overview
Brands included in this year’s study were: BMW, Xbox, Disney, Victoria’s Secret, McDonald’s, Starbucks, Walmart and more. So just how do you measure the worth of a Fan? There are different factors that were accounted for including: product spending, loyalty, propensity to recommend, media value, acquisition cost and brand affinity.

Here are some findings:

– Fans are 80% more likely than non-Fans to be “brand users”
– Fans spend more than non-Fans. 43% to be exact, even though they may not necessarily have a higher income.

– Fans are 18% more satisfied with their brands than are non-Fan users.
– Fans 11% more likely to continue using the brands than are non-Fan users.
– On average, 85% of Facebook Fans are likely to recommend the brand compared to 60% of non-Fans.

With social media marketing become more important and ROI becoming more transparent, it’s crucial for small business to make the most of their online campaigns.

Read more by downloading the study here. And continue the conversation by joining us on Facebook!

What Do Facebook Fans Want from Your Brand?

Facebook fans expectations after LikingDo you sometimes feel unsure of what Facebook fans want after they Like your brand? That’s why studies about Facebook consumer behavior are so helpful in guiding businesses on what to expect from their customers and how to fulfill those needs.

An eMarketer study shows that the top reason that customers Like a brand is that they want to gain access to exclusive content. 58% of users feel this way for a reason – they want to be special! With the holidays just around the corner, fans want to access coupons, sales and more. Next up, fans want to hear about updates about your company. Hearing about people and company events is a great way to encourage brand awareness and give fans a break from updates about services and products.

Different media uploads will help your updates get more clicks. 47% of fans expect posts, photo and video updates. These posts are more likely to get read and will add a more interesting touch to an otherwise plain text update. People are visual and would rather much SEE something than read it.

28% of fans want to interact with a person or brand. Check out Dr. Mike Dow and CareerBuilder for some examples of the different types of conversation that fans want to engage in. Next, 27% of fans want the company to have access to their public profile and information. Even with all the talk of privacy concerns, people are still willing to share their demographic information and interests with interesting brands that they trust.

The one thing that seems slightly confusing is that 37% of users “do not expect anything to happen” after Liking a company. I guess these people are also the 37% who also want the name of the company to show on up their profile. This endorsement is not a bad thing but the hard part is keeping up with the work to retain their interest in your brand.

Let us know what you think about this study and if it reflects why you associate with brands on Facebook. You can also read our related blog post on how Facebook Likes affect retail businesses.

The Value of a Facebook Fan

How much is a Facebook Fan really worth? When it comes to Facebook marketing, this is an answer that all business owners would like to know.

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.