If you think that the 100 Facebook friends your personal profile has could be worth £100,000 then think again! But in the world of Facebook for business things are a bit different.
According to a recent survey by marketing company Syncapse the value of Facebook ‘Fans’ or ‘Likes’ has risen 30% since 2010, but the value varies significantly for different brands. The big winner in the value per fan stakes is BMW, which tops the scales at am impressive $1,600 (£1,000), which compares to a rather modest $70 for Coca Cola. So why is a ‘Like’ for BMW worth so much more than one for Coca Cola – one of the most recognised brands in the world?
What is a Facebook Like Worth?
Clearly a single purchase of a BMW will be worth far more than a single can of coke, and that is where the crossing point between a real purchase and the world of Facebook starts. The study interviewed over 2,000 Facebook users and compared a number of factors (including product cost) to determine the value of a Facebook ‘Like’.
Product spending – How much does the average customer of a brand spend?
Loyalty – How loyal are consumers to this brand?
Propensity to recommend – How likely is it that word-of-mouth recommendations will lead to future sales?
Media value – How many fans can you reach — and how frequently — via the Facebook platform?
Acquisition cost – How efficient are existing fans in driving new fan acquisition?
Brand affinity – How deep an emotional bond do fans have with the brand?
Fans are more valuable than average
The research found that people who ‘Like’ commercial Facebook pages are more engaged in social media, more likely to recommend and more influential than the average Facebook user. Therefore Fans are not only more likely to recommend your product, they are more likely to purchase themselves or lead to other people making a purchase.
What about buying fake Likes?
Just as Google has been fighting (and increasingly winning) an SEO war over the last ten years or so, Facebook has to step up to the plate on fake ‘Likes’. Before considering a purchase of fake ‘Likes’ you should consider what harm it could do to your business when (not if) you get found out and all those ‘Likes’ are removed, along with many genuine ones that get caught in the same net.
Just like anything that is fake there are always giveaway signs, such as all the ‘Likes’ coming from a country the other side of the world to your business and a huge volume of ‘Likes’ suddenly coming your way in a short space of time.
Creating value from Facebook ‘Likes’ in your business
One of the key metrics in this study looks at ‘media value’, i.e. How many fans can you reach, and how frequently via the Facebook platform? Guest Wi-Fi from Wireless Social stack up this equation right in your favour.
Every day you will be receiving new Facebook ‘Likes’ to add to your media value. What’s more, the social media marketing portal that comes with the Wi-Fi solution enables you to reach out to your Facebook audience as often as you wish and in a whole variety of ways.
It may take you a little while to reach the average value per ‘Like’ of $174 (a little over £100) but just think how many extra purchases would it take each month to realise, or even exceed, that value.