Ben Wise on Branding

Watching the world through the lens of the brand

Your “fans” are worth $3.60? Think again!

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I recently came across an article on BrandWeek that discusses valuing a ‘fan’ on social media. Social media specialist Virtue has pinpointed that the equivalent media value of each fan is $3.60. The basis of this calculation assumes that an impression on social media is roughly equivalent to other advertising impressions online, at an average price of $5 CPM.

Unfortunately, this method is deeply flawed and greatly underestimates the value of a brand’s fans on social media.

Why Only Advertising?

From a strictly advertising point of view, the rationale makes some sense. But therein lies the problem – a fan on social media is about much more than advertising impressions.

I have written before that social media has sadly ended up a primarily marketing tool, despite potential applications throughout the organization. Being able to interact with and listen to your fans can provide you value far greater than advertising. What about forecasting, demand planning, inventory planning, just to name a few?

Social media has cross enterprise benefits that need to be captured if anyone is going to try to value a ‘fan’. Until then, any guess at the true value is just that – a wild guess.

What do you think? Can you put a dollar value on a social media fan?


Written by benwisebranding

April 13, 2010 at 8:13 pm

Posted in Uncategorized

Tagged with ,

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