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What’s a 'like' worth?

We’re all rushing around trying to get social media fans, but how much does it cost to get a Facebook like and how much are these fans worth to your business?

Likes can be costed if they are bought through Facebook advertising. Most Facebook advertising works on a ‘cost per thousand impressions’ or ‘cost per click’ basis, paying either when 1,000 people have seen an ad or when the little box is clicked.

Facebook has recognised the limitations of these measures with a new ‘cost per action’ charge. This paid for action can include liking your page or clicking on a link.

So, fans can have a price, but what is there value? It’s a difficult – maybe impossible – calculation to make, but social media agency Syncapse have teamed up with researchers Hotspex to try to find the elusive figure.
And, the answer is $174 on average.

That average comes from a large range of values. At the top of the tree is fashion store Zara, whose fans are said to be worth an impressive $405.54 each, Levis come second. At the bottom are Coca Cola, whose $70.16 value per fan is still pretty impressive, Xbox are next up.

It’s easy to see that Zara and Levis are relatively highly priced brands in a business where influence is everything. Coca Cola is cheap and many Xbox fans are probably too young to be spending their own money – it might be an interesting exercise to see where your business fits. Syncapse says the main determining factor is purchase price, but still finds MacDonald’s’ fans are more valuable than both Nike and Adidas.

Max Kalehoff, vice president of product marketing at Syncapse, says businesses need to measure what their fans do. Do fans spend more, or more often than non-fans? Do they promote your business?
Only when you know what a fan is worth can you know what it’s worth spending trying to get new ones, says Kalehoff.

Facebook ad buyer, Marc Grabowski, says you need to go even further because some fans are worth more than others. How many people will like Manchester United’s Facebook page without ever handing any money over to the Old Trafford club?

And it also costs to keep fans. They need to be entertained, which means producing content.

Of course, there is a value to every Facebook fan – if they’ve given their click any thought they’ve shown at the very least an interest in your business.

The research required to measure all this may be too expensive, too technical or too time-consuming for a small business to consider.

However, there is a lesson you can learn here however small your business:
Blindly chasing fans without any idea how you are going to interact with them is probably going to be wasted effort.

Do take a look at who are your most valuable fans and design your marketing around them.

The research also found that, three-quarters of fans share good experiences and promotions and discounts with Facebook friends. And, be warned, two-thirds will tell their friends when they’re unhappy.

Toolkit can help you find your feet in social media by setting up your presence on all the most important sites – from YouTube to Twitter – with some great discounts on bundles of services. Check out our websites Social Media page via:

http://www.toolkitwebsites.co.uk/Social_Media_Services

For more information call our team on 02380 633 644 or email info@toolkitwebsites.co.uk.

Get in touch with Toolkit Websites, expert Web Designers in Southampton, Hampshire, UK and see how we can help your business grow.