Vitrue, a a social media marketing platform company, has recently tried to find the value of each “Fan” of a Facebook Page. Their findings, which were published in the recent edition of AdWeek, show that the value is somewhere around $3.6 per fan (per year). The firm has determined that, on average, a fan base of 1 million translates into at least $3.6 million in equivalent media over a year.
Vitrue’s findings are based on impressions generated in the Facebook news feed, the stream of recent updates from users’ networks. The company analyzed Facebook data from all its clients with a combined total of around 41 millions fans. And each client received about $3.60 in return from every user who becomes a Fan of the client’s Page on Facebook.
These figures may not apply to all companies. That is because Vitrue’s study was only limited to its clients, and each client has at least 1 million fans of their Page. Thus the figures may be different for those companies whose Pages have less than 1 million Fans.
However, the figures may be accurate for those Pages with 1 million fans. If there are two posts published by a company on its Page (with 1 million Fans) daily, then a total of 60 million (= 2 x 30 x 1 million) impressions by the company will be formed every month. Since the cost of 1000 impressions is $5 – as determined by Vitrue, the cost of the 60 million impressions will be $300,000 (= 60 million x 5/1000). This translated into a cost of $3.6 million (= 300,000 x 12) per year. Thus the return on each of the 1 million fans is $3.6.
These figures are important to all companies who are using Facebook as a medium to promote their brands. For a few companies, the return may be even greater than $3.6. This happens because the Fans may share the posts with their friends on Facebook which creates a viral effect.