Wednesday
Jun232010
Your Facebook Fans Spend More
Wednesday, June 23, 2010 at 11:01AM
I saw this eMarkter report, What Brand Fans Are Worth, the other day that I found interesting. So the main finding is that fans of a brand on facebook spend more than non-fans. I guess this intuitively makes sense that people that are engaged with a brand and enjoy / value the product or service would become fan’s on Facebook. It would also make sense that this same type of person would spend more money than a non fan. So one take away is that loyal fans spend more and Facebook gives you a good way to measure that value.
The part that I find interesting is that they measured fan acquisition at $0.47 while they pegged total value at $136.38 for large corporate brands. That gives an ROI of around 290% - which I think most markets would be ok with. So that type of number, while cannot be accepted as indicative of everyone else's ROI potential, does suggest that every marketer needs to start looking at these channels and making it part of their total strategy.
Making it part of your strategy means how do I leverage my investment? I guess the $0.47 is the one that I struggle with the most because what it does not / and cannot represent is the cost of maintaining that Facebook fanpage. You cannot drive 290% ROI out of a channel if you are not actively participating in it and responding to fan’s comments good, bad and otherwise. So there is an operating cost to it just like your web site.
The comments and goodwill generated in that community have value but it is only being shared with people already in the community. Display advertising can be used to promote the positive feedback of the fan page to people outside the community to drive more sign ups. Leverage the content of one channel to distribute a message in another channel. After that though – it is up to you to capitalize on the fan acquisition and make it a place that offers value to the members.
The study found that people spent significantly more on products they were fans of, compared with consumers who were not fans. In the case of many of Facebook’s most popular food and beverage marketers, fan spending was more than double that of non-fans.
The part that I find interesting is that they measured fan acquisition at $0.47 while they pegged total value at $136.38 for large corporate brands. That gives an ROI of around 290% - which I think most markets would be ok with. So that type of number, while cannot be accepted as indicative of everyone else's ROI potential, does suggest that every marketer needs to start looking at these channels and making it part of their total strategy.
Making it part of your strategy means how do I leverage my investment? I guess the $0.47 is the one that I struggle with the most because what it does not / and cannot represent is the cost of maintaining that Facebook fanpage. You cannot drive 290% ROI out of a channel if you are not actively participating in it and responding to fan’s comments good, bad and otherwise. So there is an operating cost to it just like your web site.
The comments and goodwill generated in that community have value but it is only being shared with people already in the community. Display advertising can be used to promote the positive feedback of the fan page to people outside the community to drive more sign ups. Leverage the content of one channel to distribute a message in another channel. After that though – it is up to you to capitalize on the fan acquisition and make it a place that offers value to the members.
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