Each Facebook Fan Is Worth $3.60 Annually

By Raj Dash Comment

-Vitrue Logo-Social media marketing platform company Vitrue has determined that the average value of a Facebook ‘fan’ is about $3.60 in equivalent media each year. This calculation is based on having one million Fan Page fans, and is not weighted for brand recognition.

In some figures published in AdWeek, Vitrue revealed how they determined this per-fan value. They made their findings based on the aggregated fans of their client base for their Wall Apps Facebook applications, which is part of their SRM (Social Relationship Manager) software suite. Collectively, Vitrue’s clients have 41M Facebook Fan Page fans. Their study results show that companies with a fan base of 1M find an average return of $3.60 per fan in the form of “equivalent media,” spread out over a year.

The numbers work like this. If a brand posts to their Facebook Fan Page twice a day and have a million fans, that’s 60M impressions per month in the collective “news feed”. Vitrue used a figure of $5 CPM (Cost per Mille, aka Cost per thousand impressions), so 60M impressions would result in $300K/month of media value. I.e., what the brand might have to spend elsewhere to get the same eyeballs. That $300K /month is $3.6M/ year, meaning that with 1M fans, the average value is $3.6 per fan.

These numbers are just averages, but the general statistic is important to those who need to measure social media metrics. Brand notoriety seems to play a part in whether all companies realize the $3.60/ Facebook fan value, or go above or beyond. E.g., a popular brand might get additional impressions from the Facebook news feed, partly because of fans sharing information with friends.

If you want to learn more about Facebook Page-related promotion opportunities, have a listen to our sister site MediaBistro’s podcast interview with Vitrue CEO Reggie Bradford, from early Mar 2010.