How much is a Facebook fan worth?

For companies that are not sure how to deal with social media here’s a small step that can help the decision making process. Vitrue , a company that specialises in social media has put a valuation on a Facebook fan. It claims a Facebook fan may be worth $3,60. Vitrue says the value of a Facebook page with 1 million fans is worth $3.6 million in earned media per year.

The company has made the calculation on the basis of the fans it manages for its clients. It has found that single wall post can generate one impression. Two posts per day would create 60 million impressions per month on a 1 million-fan site. With a CPM (cost per thousand impressions) of $5 that would lead to revenues of $300.000. From the Vitrue blog:

“So there you have it: a simple valuation using metrics every marketer is familiar with. But that’s not all. Facebook wall posts have social engagement such as clicks, comments, likes, plays and shares. Wall Apps such as a coupon or a poll offer even greater levels of engagement. Brands engaging their Fans stand to earn much more value, potentially doubling or tripling these estimates.”

Of course the company has an interest in high valuations in social media because this is what its business model is based on. This means this is best to see as a starting point in putting a monetary value on followers in social media.

Picture: Stock Exchange | Music  Gabriella-Fabbri