If I “Like” Your Page, What Is That Worth?
We’re all still exploring new territory. Oh I know there are some people who have offered concrete facts based on opinion alone – keep your eyes on them they’ll be re-adjusting their facts with time, they always do. Let’s talk for just a minute about the value of a Facebook “Like”. Fortunately I’ll be able to give you some data from a reputable study and I’ll accompany that with my normal advocacy for thinking like a small businessperson. See most studies follow enterprise corporations like the one I currently work for. After all how exciting is data from Mary Lou’s Nails and Curls? Well, for Mary Lou it’s not only exciting but crucial to her success.
Our example proves enterprise data to be more exciting because the target mark for this Vitrue study from 2010 uses a factor of 1,000,000 fans. If Mary Lou has that many fans I’m giving this report only to her and in a closed conference room. She ain’t got that many – she’s reading this because it’s free and that’s her budget for social support (or at least that’s what she thinks so far). You’re more like Mary Lou than the example company with a million fans. Still, let’s look at their projections.
Essentially, according to a report in AdWeek, Vitrue’s studies and calculations conclude that with 1,000,000 fans (likes) this “translates into at least $3.6 million in equivalent media over a year”. In other words with 1,000,000 fans you can save $3.6 million in online (PPC) advertising, theoretically. This happens because “Likes” are shared on users activity stream and is syndicated to their audiences in addition to yours. You just increased your reach because of something your fan did and that did not cost you a cent.
“Vitrue arrived at its $3.6 million figure by working off a $5 CPM, meaning a brand’s 1 million fans generate about $300,000 in media value each month. Using Vitrue’s calculation, Starbucks’ 6.5 million fan base — acquired in part with several big ad buys — is worth $23.4 million in media annually.” – AdWeek
Chances are if you are reading my little blog post you don’t have 1 million fans. Sorry, that’s just the way it is. We need to graduate you from me. My readers are more likely to have 10,000 or fewer fans with the exception of a few guests from Social Media Edge Radio who just happened to be interested enough to read. More than like you are in the 300 to 3,500 fan range so how do we calculate the value for you?
Simple but oh so complex:
- Have a measurable strategy
- Use landing pages with analytics turned on
- Collect data or make a sale on your landing page
- Compare your data at least weekly if not daily
- Record your fans
- Record your click-throughs from Facebook
- Record the number of interactions/sales
- Keep track of your spending for Facebook ads
- Be prepared to make adjustment to your campaign but annotate your data as such
- After 90 days check your numbers and make the comparison
(If you don’t know how to do this that’s what I do so call me.)
As I was writing this today I got a call from Jeff Belonger who had questions and comments about this exact issue. Jeff runs MyPhillieAlive on Facebook. He told me he has about 330 fans and has a post that was placed about 18 hours ago that already has over 600 impressions. If Jeff uses the technique above and draws people to his website or asks for interaction within the post he can then follow the data of impression to actions to consummations.
Think about a like. Imagine if you have 100 Facebook fans on your business page and you post an invitation to your next bake off. Chances are those first 100 fans are going to be friends, family and true fans. They are going to “Like” your post. Suppose only 10 of them like your post but on average those 10 have 500 Facebook friends. Your new potential market is 5100 eyes including their combined 5000 and your initial 100. If your subject matter is appealing to those who read it chances are you’re going to have a nicely increased amount of activity to your event.
Measuring traffic and consummations is key to knowing where your time is best spent. Facebook requires an understanding of the language most appealing to your fan base, regular (daily or more) interaction with your fans by posting to your fan page, and convincing them to convert to a financial transaction.