In 2010, the value of a Facebook like was $136, but within three years, it climbed 28% to reach $174 in 2013. Those statistics come from a report from Syncapse, a social performance management platform. The company conducted its Facebook fan value study in 2010 when there were 610 million monthly active Facebook users. Today, there are 1.056 billion monthly active users on Facebook, and those users are driving revenues for Facebook. In 2010, Facebook revenue was $1.974 billion, and those revenues grew by 158% to $5.089 billion at the end of 2012. That means the average revenue per Facebook user is $5.32.
What do all of those Facebook users, likes, and page fans mean to brands? To find out, Syncapse studied 20 leading consumer brands, such as Coca-Coal, Walmart, H&M, McDonald’s, Nike, Disney, BMW, Xbox, Levi’s, and more.
Six primary factors were included in Syncapse’s Facebook fan value calculation:
- Product spending
- Propensity to recommend
- Media value
- Acquisition cost
- Brand affinity
The analysis of the data revealed that fan counts doubled or even tripled between 2010 and 2013, and the average fan value in the consumer brands category increased by 28% to $174.17. The Facebook fan value ranged from $70.16 for Coca-Cola to $405.54 for Zara. According to the Syncapse analysis, brands with smaller retail prices have comparatively smaller fan values. Furthermore, brands with high equity or longevity in the marketplace have lower fan value.
Fan behavior has a significant effect on Facebook fan value to brands. For example, Facebook brand fans are 80% more likely than non-fans to be brand users, and they spend 43% more in categories they’ve liked versus non-fans (even if they don’t have higher incomes). Fans are also more active in social media. They spend more time on Facebook, believe that social media is more important to them, and believe it’s critical to helping them research products and services, share information with other people, and connect with brands they like.
Syncapse identified several fan and non-fan behaviors that impact fan value:
- Fans spend more than non-fans.
- Fans advocate brands more.
- Fans typically use a brand before they like a brand’s Facebook page.
- More people like Facebook brand pages for personal expression than to access coupons.
You can follow the link at the beginning of this article to download the complete report. It’s filled with details about each brand, fan versus non-fan behaviors, brand recommendations, and more.
Image: Owen W. Brown
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