What is the Value of a Facebook Fan or Like

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One of the reasons our social wifi system has been a runaway success is that people understand the value of social media, or do they? It is safe to say that most people know that there is a value in Facebook Likes and Followers on Twitter or LinkedIn, but what is the real value of a Facebook fan to you as a business? Marketers and business owners are spending a great deal of time and money expanding their social media presence and are keen to understand the ROI they are achieving.

Syncapse have recently published their annual report. In 2010 their report put an average value of $136.38 (just over £89) to a Facebook Like, whilst 2013’s figure is $174.17 (£114).

So why the rise in value over the last 3 years? The report tells us this is driven by the increased engagement of ‘Fans’, who are showing more loyalty and advocacy for brands now than ever before. “Pages and news feeds have become hubs, not only for publishing content, but for sharing and amplifying messaging through paid media”.

It’s important that brands understand that they must use this resource to maximise the value extracted from each ‘Fan’. The report explains that different categories of products and services enjoy differing average values, and brands which use social media well to interact with their fan base can achieve values far in excess of the $174 figure.  As you might expect, this is also based on the value and potential revenue achieved by the products sold by that brand. BMW’s fan value, for example, is an astounding $1613.11.

The report also outlines the stern loyalty of users who become Facebook ‘Fans’. Fans are 80% more likely than non-fans to be brand users. They are 43% more likely to spend within the product category than non-fans and they are 18% more likely to continue to use the product than non-fan users are. It’s therefore absolutely key that brands are able to convert users into Fans, to reinforce loyalty and create a Halo effect around their product.

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