SocialTRAC™, Value o a Facebook Fan. ©2010 Syncapse Corp. All rights reserved.www.syncapse.com
THE VALUE OF A FACEBOOK FAN:AN EMPIRICAL REVIEW
As Facebook matures as a viable marketing and customer service channel, manyorganizations are looking to quantiy and understand the impact o their overall marketinginvestment on their business. Quantiying the Return on investment (ROI) o Facebookmarketing eorts includes multiple variables and companies oten ail to understand andto properly value their eorts in terms o the potential long-term business benets o theFacebook channel.Many brands overcomplicate their measurement requirements by tracking dozens oindependent variables. Many oversimpliy by trying to apply a single number concept ovalue, and ar too many ail to quantiy ROI in such a way as to convince a CFO o the merito increasing or shiting investment towards Facebook marketing.Syncapse has adopted a unique approach tounderstanding the nancial returns that social members onFacebook provide to a business. Facebook an ROI canbe understood though a knowledge o key perormanceindicators that have traditionally led to increased salesand prot in business and the key dierences betweenFacebook users who have opted to “an” a brand andthose who have not.This study will examine the ve leading contributors toFacebook an value. (1) Product Spending (2) BrandLoyalty, (3) Propensity to Recommend, (4) Brand Anityand (5) Earned Media Value.
Introduction: Understanding The Value O A Fan
Brand marketers have been struggling to understand the impact o their Facebook marketing eortscontribution to their overall marketing success. Many are attempting to establish the return througha campaign-based analysis rather than by a consideration o long-term business value. Conusion inthe industry is widespread and clear principles or Facebook measurement have not been commonlyadopted. This has resulted in missed advantage across agencies, brand teams, and executives in ullyrealizing the potential benets o Facebook marketing.Understanding long-term Facebook an value is a complex undertaking with advanced calculationsrequired across multiple variables. This understanding is rooted in the measureable dierencesbetween users who have “anned” a brand and those who have not. The value is refected not simplyby the action o being a “an” but rather by the value o the audience and the benets “anning” oersthe brand.
Value is refectednot simply by theaction o beinga “an” but ratherthe value o theaudience.