The study, “The Value of a Facebook Fan 2013: Revisiting Consumer Brand Currency in Social Media” followed up on a nearly-identical study by Syncapse in 2010.
That $174.17 (in key consumer categories) represented a 28 percent increase in the value of a fan over that estimated in 2010. Much of this jump is attributed to the fact that fans are increasingly spending more and advocating more than non-Fans. Also of note: For most of the brands researched, the fan base doubled (and in some cases tripled) between the 2010 and 2013 studies.
The research focused on very large brands (all of them have well over 15 million fans). Analysts compared Facebook fans (those who have “liked” or fanned a page) vs. non-fans, across these variables:
– Product Spending
– Loyalty
– Propensity to Recommend
– Brand Affinity
– Media Value
– Acquisition Cost
Some other key findings from the most recent Facebook Fan value study:
– Brands with smaller price tags tend to have smaller Fan values. However, when the price is lower (think Coca Cola), Fan membership numbers tend to be high, so engagement strategies should focus on everyday touches/engagement.
– Fans who use the brand are more receptive to it than users who are not Fans. (Conclusion: it is beneficial to convert mere “users” to fans.)
– Fans are super consumers – much more active with social media and likely to share good experiences and promotions with their Facebook Friends.
– Fans advocate for the brand more, on average they are 85% more likely to recommend the brand (compared to 60% of non-Fans).
– The Fan value is lower for brands with high equity or longevity (For example, Xbox, Nike, Wal Mart). This is skewed in part because non-Fans of these brands purchase and recommend much more than the non-Fans of other brands in the study.
Monetizing Facebook is still in its infancy. Here at Analytic Marketing Innovations Inc., we are a little skeptical of studies produced by organizations with a vested interest. Syncapse is a marketing agency that specializes in social media data.
However, we agree that it can’t hurt to encourage customers to “like” company Facebook pages. We aren’t sure how the value was calculated (and Syncapse doesn’t give up their “secret sauce”). Still, the trend is noteworthy. The “likes” and Fans have doubled, sometimes tripled, in three years for these companies and shows no sign of slowing down. Much of our work at AMI hinges on finding clear market segments, and those who “like” a Facebook page certainly make up a segment with which companies can continue to foster and grow loyalty/purchases.
Some of the tools in our arsenal at AMI, such as media mix analysis and marketing attribution, would also be useful in gaining further understanding of Facebook spend/value.
Jill Giele, VP Marketing and Client Relations, Analytic Marketing Innovations, Inc.