What is the value of a Facebook Fan?

Facebook pages are becoming more and more popular with marketing your business; and perhaps you have already taken the necessary steps to build your fan base. Beyond that, however, have you ever wondered how much a Facebook fan is worth? The ROI of a facebook fan is $3.60 annually.

Virtue, a social marketing group, sought the answer. Their research indicates the earned media value of one Facebook fan is $3.60 per year. In addition, the impression that a single wall post makes on the fan page is 1:1; in other words, for every wall post made public, an impression is made on a fan. That means one post per day for a month with a fan base of one million would be 60 million impressions.

Virtue placed a $5 CPM (cost per thousand views) value to the earned media. The equation figures that a fan page with one million fans gives $300,000 in earned media a month.

1M impressions x 2 posts x 30 days = 60M impressions

60M impressions / 1000 x $5 CPM = $300,000

Considered in a larger scale, a fan page with one million fans would have the earned media of $3.6 million, annually.

Although it sounds like a very simple way to create free advertising for potential clients, having a fan page is not enough. The page needs to continue to attract new fans, while keeping the old fans coming back for more.

Insivia wants to know, what do you think about this equation?

We would love to hear what you think! Leave a comment.