Marketers have been, for a while, trying to truly quantify the value of a Facebook like. The problem with determining that value is that it’s very, very difficult to keep track of. Why? Because there are a lot of different factors and variables involved in measuring the value of a like, and in order to put an accurate value on that, one must take all of those factors into consideration. Despite that, some companies have tried to put a value on a Facebook like, ranging anywhere from $1.34 to $3.60, to as much as $10.00 (then, even $136. See chart below).
But, as I’ve already pointed out, it’s not an exact science. There is no formula that will predict exactly what you will earn from a fan over the course of a year because, right now, information to predict that isn’t exactly available. Predictions that do arise usually just pay attention to the number of impressions versus any increases (or total) revenue. Again, not a science.
The Social Factor
But I don’t necessarily believe that the value of a Facebook like is something that you can pin down or quantify. Why? Because there are so many other factors behind the final sale price that one must take into account when determining that value. Namely, the social factor.
Facebook works in a way that encourages sharing. Basically, its EdgeRank algorithm gauges the social value of content that people post and share through how much feedback it receives from others. The higher that value, the higher up and longer that it stays in other’s news feeds.
Applying the Social Factor to Businesses
With Facebook business pages, that same ‘social factor’ (or EdgeRank) now applies to businesses. When someone likes a business’s Facebook page, they are essentially subscribing to hear from that particular business. So, a few times a week, that business might be finding its way into the news feeds of individuals. Maybe, once every so often, that person will like a status, or comment on a question.
And then, maybe, just maybe, their friends might start seeing that that person is interested in that business. They, too, may be big fans of that visit, so they decide to like it. And etc. etc. etc.
Talking About $$
Let’s put an average business’ Facebook fans into three groups: Primary, secondary and tertiary. The primary fans are the bread and butter of a business. Depending on what sort of business it is, they use its services twice a year. Let’s say, on average, they spend about $120. This is only a small portion of a brand’s fans on Facebook, maybe 10%.
Then, let’s consider all of their other fans — all 90% of them — the secondary ones. They might, on average, spend $10 at this particular business a year and aren’t nearly as exposed to it.
Then, there’s everyone else. Everyone that’s exposed to the business’s ads, sees their friends interacting with their page, and also hears about it from their close friends. These are the tertiary fans, but they are still important. They are constantly being exposed to the business and may, in the future, become patrons of it.
A Facebook like is more than just a single potential customer or impression. It’s access to their probably hundreds of friends and access to their news feeds. It grants you the ability to gain consistent and frequent exposure to them and their friends. By doing so, you’re not only gaining immediate impressions, you’re also gaining the ability to provoke them in the future with some sort of intriguing offer or special or event.
A Facebook like is like gaining a friend. They may not always be around to help you out in some way, but in the future, they could come through huge. They might also bring their friends to help out, too.
Source: MSM DesignZ, Inc. is a Westchester social media company based in NY specializing in advertising, web and graphic design, and SEO.