How much is social media worth to a brand?
Social media worth
According to a recent article, a simple facebook “like” is worth around $174 to a brand. We all knew the value in terms of link-building and loyalty, but now a new study has quantified the value of social media’s worth. Each social platform and business would have a unique value, but the main point is Yes! Social bookmarking does work.
One of the reasons it works so well is due to branding. People like things which are popular, so as one person “likes” your product and sees other liking it, it catches and builds up a certain momentum until within that circle of friends (and beyond) the brand has meaning and value. So when they need to purchase an item related to the product/service type, the brand name which they already “liked” comes to mind. How much is social media worth, well work out the advertising cost to establish similar branding using conventional means.
Social intelligence company Syncapse conducted the research using over 2000 Facebook users who had liked a brand. They found the following results
- facebook fans spend more money not only on the brands they fan ($116 more per year than non-fans), but also within the brand’s sector — 43 percent more, despite not having a higher income than non-fans
- those fans are also 18 percent more satisfied with their brands than non-friends, and
- 11 percent more likely to continue using the brand than non-friends
This means your social media circles/friends/groups are your evangelists. The study recommends prioritising social media marketing to get feedback and make sure they’re happy, they feel appreciated and nurtured by providing attention and value through activity or promotions, and to find ways to discuss your brand with them in a mutually beneficial environment.
The report said “The increase in average fan value is driven by fans’ tendencies to be super-consumers,”…. “Not only do they tend to be brand users first, they spend more, engage more, advocate more and are more loyal. The significant and increasing value of a Facebook brand fan affirms past social marketing investment and mandates deeper commitment and accountability in the future.”