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Monetizing Facebook: Dollar Value of Facebook Fan

ByLaurel Papworth

An interesting way to calculate Return on Investment (ROI) of a Facebook Fan Page. Sorry Brand Page. and we don’t Fan brands anymore, we like, Like them. $3.60 Facebook Fan Valuation Is Just the Tip of the Iceberg What’s the value of a Facebook Fan? – a question we are asked every day. Savvy marketers…

An interesting way to calculate Return on Investment (ROI) of a Facebook Fan Page. Sorry Brand Page. and we don’t Fan brands anymore, we like, Like them.

$3.60 Facebook Fan Valuation Is Just the Tip of the Iceberg

What’s the value of a Facebook Fan? – a question we are asked every day. Savvy marketers continue to invest substantial sums in building a presence on social networks like Facebook and Twitter.  They clearly see the Return on Investment (ROI), and we want to help you understand some of the reasons why.  So we developed the first-ever published Facebook fan valuation

According to our research a Facebook Page with 1 million fans is worth a minimum of $3.6 million in earned media annually. Honestly that’s just the tip of the iceberg as I’ll explain.

How does it work? I’m assuming that the term “impression” here means shows up in a Facebook profile personal newsfeed, not just seen on the Fan page.

  • Vitrue “manages” 45 million fans, so sampled that data to look at wall post impression to fan ratio.
  • They figured out that every wall post receives almost exactly a 1 to 1 impression (0.96:1)
  • Example given – 2 wall posts a day will garner 60 million media impressions a month.
  • They then assumed companies would pay at least $5 per CPM (cost per 1000 impressions)
  • 60 million impressions a month at $5 per 1000 impressions is $300,000
  • they make the point to then look at clicks, comments, likes, plays, and shares.

You can see “interaction” on your Facebook Page Insights area

My unloved unfed fanpage

There ya go- that’s how they came up with an interaction/engagement CPM based on Facebook fanpage numbers

Students:

Marketing Course: Why not meander your way through Fanpages: List of top 100+ Australian Facebook Fan Pages… work out the CPM of the popular Australian fanpages and figure out the engagement $$ value. If you get stuck yell out – you don’t have to leave comments on this blog post 😛

15 Comments

  11. It is interesting for those who have started Facebook Fan Pages without considering this ROI thing, it will be interesting to see what comes up later when your Fan Page presence grows and grows.

    I started my online community for women in Spanish not long ago and it has more than 4600 Fans already I just thought about it like a way to promote the community but never considered anything about ROI for it.

    Thanks for your useful info as always. I’d like to listen to your comments about the new changes in the Facebook Fan Pages from fans to “like it”

    2. You have quite the potential to realize ROI based on your great fan following, Karina. There are probably a number of creative ways in which you can offer incentives or other trades to yield more returns.
      Nice work!

  12. Pingback: Why I Deleted My Facebook Account | Oli Young

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