19 Sep 2010

So Much Is a Facebook Fan Worth

You might have asked yourself or somebody else: “What is a Facebook fan actually worth?” And nobody has been able to answer this question. Until now! The answer is somewhere around €104 (£87). An average Facebook fan of your company is worth about €104 (£87), according to a report from Syncapse. However, if you work intelligently with social media and have done as described in my earlier blogs (eg How to Become a Social Media Champion) and if you have to avoided Social Media pitfalls the value of a Facebook fan can be quite high. But if you haven’t got a clue what’s going on social media wise the value is almost insignificant.

The report is one of the first to try to put an actual amount on the value of a Facebook fan which isn’t easy and can only be an estimate. However, it's interesting to see that the daily work with social media is probably worth the effort - and then some.

An average fan may participate with a brand ten times a year and will make one recommendation. But, an active fan may participate thirty times and make ten recommendations. The impact this has on fan value is quite dramatic. The report mentions that in the case of Coca-Cola, the best case for fan value reaches €243 (£204) which more 225 per cent more than the average value of a Facebook fan.

If a customer is fan of a product or service they are 28 per cent more likely than non-fans to continue using the brand. Fans are 41 per cent more likely than non-fans to recommend a product to their family and friends. This means that a company must try to move its Facebook fans up the value ladder that is trying to move the average fan value to the active end of the range.

Not only in terms of recommendations are Facebook fans more valuable. Fans buys more on average than do non-fans. Fans are on average spending €55 (£46) per year more than people who are not fans of the product. McDonald’s has the largest variability. Fans of McDonald’s are spending €122 (£102) more during a year than non-fans.

Product spending: Fans vs non-fans:
Company Fans Non-fans
Nokia €131 (£110)      €49 (£41)
BlackBerry €101 (£85) €75 (£63)
Motorola €122 (£102) €53 (£44)
Secret €68 (£57) €41 (£35)
Gillette €98 (£82)€49 (£59)
Axe €78 (£65) €47 (£40)
Dove €108 (£91) €44 (£37)
Victoria’s Secret     €175 (£147)€117 (£98)
Adidas €96 (£80)€56 (£47)
Nike €157 (£131)€54 (£64)
Coca-Cola €146 (£122) €93 (£77)
Oreo €54 (£64) €43 (£36)
Skittles €98 (£82)€34 (£40)
Nutella €78 (£65)€41 (£34)
Red Bull €87 (£73)€38 (£32)
Pringles €102 (£85) €47 (£39)
Playstation €144 (£120) €93 (£78)
Xbox €133 (£111) €107 (£89)
Starbucks €180 (£151) €85 (£71)
McDonald’s €237 (£198) €115 (£96)
Source: Syncapse (September 2010)

The conclusion is quite obvious: The companies which are engaging its Facebook fans are receiving a generous ROI. Companies which aren't engaging its fans aren't.


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