Social Networking Marketing Boiled Down To Dollars and Cents

January 3, 2011
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Marketing Monday Tip of the Week:

Market on Social Networks!

The big wave in marketing is marketing and branding through social networking sites. However, who is to say just how many dollars and cents this can make a company? The idea is sound, but where are the facts and figures?  The dollars and sense and cent value appears to reduce to which yardstick is used to measure the value and what values are being measured.

THE VALUE OF A FACEBOOK FAN: AN EMPIRICAL REVIEW

A June 2010 study by Syncapse recently reported on four major attributes that most brands strive for when connecting with fans on Facebook.

  • Spending – Facebook fans are larger spenders than non-Facebook fans
  • Loyalty – Fans are around 30% more likely to continue with the brand than others
  • Recommendation – 68 % of fans would recommend the brand to others
  • Connection with the brand – Fans are 81% more likely to feel a personal connection with a brand

So what does all that mean? Of course it means that social networking on Facebook almost surely works in a positive way. However it also means that these fans are worth money to the marketer. How much money is the question?  According to the study, each fan is worth about $136.00.

However there are some gaps in the figures and although the study is an excellent stride forward, it is not definitive as there is no reliable way to measure consumer behavior on Facebook or any other social networking site.

Online ticketing company, Eventbrite released a report indicating that a link on twitter netted the company forty three cents in revenue while one on Facebook was worth $2.43. Eventbrite while large in sales (they process tickets not sell them) is a relatively small company still raising venture capital. They however have learned the value in dollar and cents of social marketing venues and disdain none of them.

How are you using Social Media (Network) Marketing to add dollars to your bottom line?

Please comment and share below.

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