What is the actual dollar value of a Facebook Fan?

May 21, 2010 | Posted by Carolyn Pikoulas
Well, technically the question should now be, "What is the dollar value of one person who ‘likes' your brand's Facebook Page?" The answer, according to an article from AdWeek, could be worth up to $3.60! These findings are based on impressions generated in Facebook's news feed.

Facebook data of 45 million combined fans from a variety of branded Facebook Pages was analyzed, and it showed that the brands who post twice a day are able to achieve monthly impressions of about 1.5 times their number of fans (i.e. 45 million fans equaled 60 million monthly impressions). An "impression" is the equivalent of one ad view. Let's say that paid advertising costs $5 per 1000 impressions. That would mean a Fan Page owner that has 1,000,000 fans and posts content to their Page twice a day can expect that they'll receive around $3,600,000 in "advertising value" per year from these fans.

Here's their simple equation:
1,000 impressions x 2 posts x 30 days = 60,000 impressions
60,000 impressions / 1000 x $5 CPM = $300,000 (x 12 months)

So what does this mean for you? It means that the time and effort you put into building your fan base now has a more tangible return on investment. It also means that the more regularly you post information, the more impressions you'll likely be achieving and thus the greater the value of your fans.

Of course, not all Fan Pages can achieve these figures. Some Pages are far more engaging for their fans than others. The study found that some Fan Pages achieved as low as 0.44 impressions per fan. How can you achieve a higher value with your fans? For starters, customizing your Page with contests, coupons, and interactive features can help engage your fans even more. A custom Page is also far more likely to spread throughout the Facebook networks.

Talk to us today to see how WDC can develop a custom Facebook Page for your business!