A recent series of articles have come out to define a cash value of a brand's fans. The numbers are interesting to look at:
- Digital consulting firm Syncapse and research company Hotspex have come up with an empirical formula that puts an average value of $136.38 on the Facebook fans of the site’s 20 biggest corporate brands. (emarketer)
- Social media management company Vitrue also attempted to put a dollar figure on Facebook followings. That study examined impressions in the Facebook newsfeed and their earned-media value to arrive at a figure of $3.60.
- Syncapse and Hotspex calculated the earned-media component of a fan’s value nearly twice as highly, at $6.79.
- More than one-half of Facebook fans said they are more likely to make a purchase for at least a few brands, and 67% of Twitter followers reported the same. (emarketer/Chadwick Martin Bailey and iModerate)
- The power of earned media gives a further boost to brands: 60% of respondents claimed their Facebook fandom increased the chance they would recommend a brand to a friend. Among Twitter followers, that proportion rose to nearly eight in 10. (emarketer/Chadwick Martin Bailey and iModerate)
The interesting points here stem from the power of social media to engage a brand with its fans and provide measurable value. We maintain that the RevenueNation methodology amplifies these activities further, as RevenueNation allows our Brand Advocates to leverage social media to use word-of-mouth to recommend brands and products to friends and followers--thus leveraging social media's power for the highly coveted coveted word-of-mouth marketing channel that brands seek.
Eventually, we will put together research to show how effective our RevenueNation Brand Advocates recommendations are for our advertisers!