Facebook Fans Spend More Money
Syncapse the social media marketing company did a survey on 4,000 Fans of the top 20 brands on Facebook, trying to find out their monetary value. The data is useful for companies which are considering marketing in the social media world.
The study is called The Value of a Facebook Fan: An Empirical Review. The investigation predicts that those who are Fans of a brand will generally spend $71.84 more annually than those who aren’t, which makes a Fan to be worth, on average, $136.38 per year.
This method is very different than the one employed by Vitrue in another fan value study a month ago. It is very easy and friendly for non-professional to judge if their fan pages are growing to a good direction.
Vitrue used the cost of recruiting the same amount of people through advertising as an indicator of how much a Fan is worth. If you have spent $100,000 on advertising and received 100 Fans afterwards, the value of a Fan would be $100.
Product spending was only one of six fan benefits that Syncapse studied. The others were loyalty, propensity to recommend, brand affinity (“perception and recall”), media value (efficiency of Facebook vs. other ways to reach consumers) and acquisition cost.
It is believed that Fans have higher value but there are exceptional cases too. There are Fans who have never spent a penny nor recommended the brand to others.
Note that this was just demonstrated as a correlation, nothing more. Nabbing someone as a Facebook fan hasn’t been proven to increase spending in this study. Whether you have spent because of fan pages, you know the best.
What Synapse suggests is merely the likelihood of Fans to purchase and preach. If they care to “Like” the brand on Facebook, chances are that they have purchased and preached already. Perhaps it is wiser to skip recruiting Fans?
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Tags: facebook, facebook applications, Facebook Marketing, facebook marketing solution, marketing facebook Hong Kong
