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 😛