In the course of doing research on Facebook’s valuation, I found some great articles and posts on the Value of a Facebook Like or Fan:
1. From the Brandbuilder blog, some of the best analysis I have seen on this subject.
Assigning an arbitrary (one might say “cookie-cutter”) value to Facebook fans in general, averaged out over the ENTIRE breadth of the business spectrum, is complete and utter bullshit.
2. Here is an argument (from Millward Brown) for how social media is not a means to building brands, but rather an end.
Social media can’t help build brands without the other ingredients that make brands strong: an effective business model, a great brand experience, clarity of positioning, and the ability to disrupt the status quo in a product category.
3. And this, a comparison between the value of Facebook and Twitter sharing from Eventbrite.
Sharing activity on Facebook equaled almost 4 times the amount of sharing on Twitter. We attribute this to Facebook’s reach (right now there are simply more people that use Facebook than Twitter) and the fact that connections on Facebook more closely mirror real-world, personal relationships.
4. Finally, a video on calculating the ROI of a Facebook ‘Like’ by Adobe. Note that this is a promotion for Adobe’s offerings, but I found the methodology interesting.
Update: Here is an infographic from Minter Dial’s blog.
The short story is that there is no way to place a single value on a fan. The answer is that “it depends.” Not only are some fans worth more than others, but the way you build up engagement on your page makes the value of a fan more or less potent.
I plan to follow up with a post distilling my readings and my own ideas on assigning a value to social media ‘Fans’ or ‘Followers’. Stay tuned!