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!

47.3 % of Brands Plan to Invest More in Local for 2013

It might be too early to start thinking about your online marketing budget for next year… but think again! According to Balihoo’s study of nearly 400 national US brands, 47.3 % of them plan to invest more in local marketing in 2013 from what they spent in 2012.

Although all the companies surveyed had an annual revenue of at least $100 million, it can also be a strong indicator of trends that small businesses are going to follow in the years to come. Take a look:

A surprising find was that “Other Social Media” was the top digital tactic for 2012 with Facebook second and SEO third. For 2013, marketers plan to add mobile, local blogs and customer reviews to the marketing mix.

The bigger a business is, the more likely it is that they’ll use different digital tactics in 2013. And that makes sense… especially in the volatile world of organic search nowadays, it’s important to not put all your eggs in once basket and diversify.

Here are some more helpful articles related to local and feel free to contact us if you have any questions about local marketing for your small business:

Google Introduces Targeting Improvements To Help More Marketers “Get Local” For Holidays
U.S. Mobile Local Ad Revenue Will Reach $5.8 Billion by 2016
Why Big Brands Are Going Local In 2013

3 Missing Elements of Social Media Success

social media influence

comScore and Buddy Media Research recently released a report on the effectiveness of social promotions during this past 2011 retail holiday season. If you haven’t seen the 17 slide presentation yet, it’s time to take a look before planning your next social media campaign.

While the report analyzes bigger brands like Amazon, Best Buy, and Walmart, there are some important takeaways that you can apply to your small business. Take a look at this slide above. This is an important slide because it addresses many conceptions that business owners have about utilizing Facebook to promote their business. The immediate thought is to 1) Get Facebook Fans 2) Become successful. As we all know, success doesn’t come that easily. According to this slide, you can look at the missing process in three steps:

1) Cut-through – As your fan base grows, you’ll need to broadcast brand messages that are interesting so that they capture your customers’ attention. The importance of this step is that most Facebook users spend 27% of their time on their Newsfeed. Spread out your focus to include updates for your newsfeed, media updates (using photos and videos) as well as status updates.

2) Engagement – Your Facebook Page can’t truly gain exposure if it’s not being talked about. Comments and Likes are both very desirable forms of engagement. Don’t forget that these actions now also play a greater role in your search engine rankings! Interestingly enough, Mashable recently came out with in infographic that showed that “positive” updates are more likely to get Likes, while “negative” updates are more likely to get comments. See for yourself, here.

3) Amplification – Facebook Shares, reposts and even private messages are also intermediary ways to help reach your end goal of success. The best part about sharing on social media websites (especially on friends’ profiles) is that there is an extra component of trust and credibility when customers vouch for your product/service. These shares will come naturally and no coupon, newsletter or commercial can replace the value of word-of-mouth advertising.

Make sure to check out the report for yourself and see what other elements you can use or learn from for your next social media campaign!