You are viewing our site as an Agent, Switch Your View:

Agent | Broker     Reset Filters to Default     Back to List

How Much is a Facebook Fan Worth?

October 29 2010

socialmediaFor a while now the return on investment (ROI) for a Facebook fans has been hard to measure. Social media takes time.  Each day posting, linking and building a followership that you should engage with takes time.

A not so underlying concern for real estate professionals is: is it paying off?  It this the best use of my day?

Take heart, those of you who are faithfully working on your social presence, recent findings from Syncapse indicate that the average Facebook fan is worth $136.38 to a brand and Facebook fans spend an average of an extra $71.84 on a product.

However, previous ExactTarget research indicates only 17% of US consumers reported that they're more likely to buy as a result of liking a brand.

In a recent blog post by MarketingCharts.com MarketingCharts.com, they provided the below chart and provided some interesting insights.

social media influence on brand buying

The above chart was created based on a recent Syncapse study. It shows an interesting pattern between user engagement in three online activities and the direct releationship between user engagement and its influence on purchases.

The Syncapse's study establishes that the average annual spend of a Facebook fan is $134.38 to a brand. ExactTarget advises this data doesn't suggest the increase in value that can be attributed to Facebook, since many of these consumers have already reached their limit to purchase additional products, goods, or services from brands.


If you look at the pervious chart, it is interesting that 37% of a brand's Twitter followers are strongly influenced to purchase from a brand. Compare that figure to Facebook's 17%.  Twitter starts to look a little more interesting, at least in terms of return on investment (ROI).

In MarketingCharts' post, they state that ExactTarget recommends marketers resist the temptation to view Facebook as merely an acquisition or loyalty channel, where number of fans is directly linked to ROI. Fans are a valuable part of a marketing strategy, but must be empowered to act as viral advocates for a brand with their own friends and contacts.

While the study shows that 6 out of 10 social media fans/followers feel "more connected" the real value is to take that connection and move it into action.  A fan may like you or think your product is a good one for people who need it, but unless they are inspired to buy for themselves, the fact that they simply follow you or are fans, doesn't increase your bottomline.

You now need to engage this fan/follower with clear calls to action, and educational materials so that when they find themself ready to sell a house, or looking to move into a new neighborhood, suddenly your real estate links and posts have increased relevance.

Please feel free to share any ideas you may have for increasing fan/follower engagement.  

 

Read-More-Articles-button-150px