Saturday, March 19, 2011

Two important factors determine the value of a "fan"

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A number of reports have come out recently which argue that a Facebook Fan is more valuable that a Twitter Follower.

A recent study by Chompon found that every Share on Facebook was worth about $14, whereas every Tweet was worth only $5. And a Facebook ‘Like’, was worth $8, while each Twitter follower was worth only $2.

There are two important factors that determine the value of either a Fan or a Follower:
1. How successfully the brand manages ‘conversations’ with their Fans and Followers
2. How the Fan or Follower engages with the brand on the social media platform 

What do you think? How do you measure ROI on Fans and Followers? Drop a comment here. 

2 comments:

Frederic Page said...

Interesting post. My company's social media manager recently shared with us the results of a study conducted by a doctoral student at Pace University in New York with assistance from London-based Famecount. The study looked at the share price performance of three of the most popular brands on Facebook, Twitter and YouTube – Starbucks, Coca Cola and Nike – over a 10-month span to demonstrate that there's a “statistically significant correlation” between rising popularity and a rising share price.

Another piece of research looked at the sales and marketing impact of positive online buzz from the blogosphere, Facebook and Twitter, concluding that the "producers", the most active members of a brand's Facebook fanpage community, are worth $22. 93 in earned media as they actively Tweet, Like and share details of new campaigns and products. The "producer" is one of the 5 categories identified in the study based on their behavior towards social media:

The producer (13.7%) – the ones who actively create and distribute new content through social networks and blogs.

The engager (24.9%) – engage brands and groups in online discussions

Participant (28.4%) - maintains and updates his or her status updates

Lurker (19.7%) – follows friends and family, but does little sharing

Abstainer (13.2%) – inactive on social networks.


Other key findings from the research include:

43 percent of consumers watch television and surf Facebook at the same time.

40 percent of respondents say a positive recommendation on Facebook would make a difference in their purchasing decisions; 60 percent say the same about blogs.

Producers spend nearly 20 percent more on the brands they recognize.


My conclusions:
There's a clear Business Case for the use of social media and Marketers should start measuring more accurately the ROI of their online campaign
Traders will become more and more interested in public companies' social media strategy and initiatives.

Miriam said...

@Fred Page, That is very interesting information, thanks a lot for sharing it! The Syncapse Research is especially informative. Would you want to do a guest blog piece some time?