Everybody likes somebody sometime, but if you are a business or a marketer, you especially want your product or brand to be "liked" on Facebook or "followed" on Twitter. But what is it worth?
There have been several attempts over the past year to quantify these new engagement metrics with varying results. Hitwise determined that one Facebook fan is equal to 20 additional visits to a retailer’s website over the course of a year. According to the online competitive intelligence service, “We took the top 100 retailers ranked in the Hitwise Shopping and Classifieds category and benchmarked visits to those websites against the number of fans those brands had on their Facebook page. We then also looked at the propensity for people to search for those retail brands after a visit to Facebook using our Search Sequence tool.”
Earlier this year, ChompOn, a social commerce platform operator, determined that a Facebook ‘Share’ was worth $14, a Facebook ‘Like’ $8, a ‘Tweet’ $5 and a ‘Follow’ $2.
In the case of shares and tweets, the study said, "we were able to directly attribute sales to the original action so we simply took the total revenue attributed to each action and divided it by the total number of shares/tweets. For likes and follows, we had to estimate attribution by looking at our traffic references and subtracting out purchases made through shares/tweets as well as purchases made through direct traffic. This analysis did not capture long-term value of customers acquired through these social channels—which means the true value per action should be even greater."
Eventbrite, a social commerce event ticketing company analyzed over 11 million tickets the company sold in 2010. It determined that a Facebook ‘Share’ was worth $2.52 and a Twitter ‘Share’ .43 cents. Its report also found that the motivation to share is higher (60 percent) once a purchase is made and the attendee is committed, while 40 percent shared pre-purchase through Facebook on the event page. The transaction share rate (TSR) was determined to be 10 percent, meaning 10 times more people shared an event from the order confirmation page, as opposed to the 1 percent who share an event they saw on an event page before purchasing a ticket (the browsing share rate, or BSR).
Another study conducted last year by Syncapse, a social media measurement firm, polled fans of the then-top 20 brands on Facebook. The study found that the average value of a Facebook fan was $136.38 as measured across five measured variables: product spending; brand loyalty; likelihood to recommend; brand affinity; and earned media value.
The report also found that fans of a product spend an additional $71.88 on that product compared to those who are not fans. Fans are also 41 percent more likely than non-fans to recommend a fanned product to their friends. Sharing on Facebook was found to be nearly four times the amount of sharing on Twitter, which is not surprising considering that there are currently more people that use Facebook than Twitter.