The average value of a Facebook fan to major consumer brands increased is $174, an increase of 28 percent since 2010, according to a study from the social marketing company Syncapse and market research firm Hotspex.
The fan counts of brand Pages have grown significantly since 2010, meaning that the total value of a Facebook presence has grown in the range of 50 to 75 percent for most major brands.
The study debunks growing industry sentiment that simply having fans on Facebook is of little value.
“Brand marketers are sobering up and beginning to ask hard questions around the ROI of social marketing. Perhaps no question is asked more than ‘What is the value of a Facebook brand fan?'” said Syncapse founder and CEO Michael Scissons.
Even so, the study documented that not all fans are created equal. Brands with smaller retail prices have smaller fan values, for example. Especially well-liked brands, such as Coca-Cola, Xbox, Nike and Walmart, saw lower value from fans.
“Essentially, non-Fans appreciate these brands as well, thus lowering overall Fan value,” the report concluded.
But fans tend to be customers before they become fans, the study concluded, weakening the case for brands to invest in wooing new fans to their Facebook pages.
“Since being a user is a prerequisite to becoming a Fan (in most cases), brands should prioritize their efforts on converting existing customers… The second priority should be acquiring new Fans that are not users,” Syncapse advises.
The study compared buying behaviors of 2,000 Facebook users, who self-reported as fans or non-fans of 20 major consumer brands. It measured the users’ consumer behaviors, including purchasing, word-of-mouth marketing and purchase intent.