(This is an excerpt from Todd Denis’ detailed post about Facebook fan value on Augmo.)
What should you pay for a Facebook fan heading into 2015? Common sense and the average marketing budget says it’s about $1 per fan – but the potential value of that fan to your brand is likely much higher.
This in-depth article addresses the pros and the cons of widely known Fan Acquisition Costs (FAC), focused heavily around Facebook. It also provides three models for calculating your brand fans’ potential value (aside from costs): Halo Value, Leads Value and Revenue Value. Under these three models, I’ve calculated some unscientific but (hopefully) entertaining Facebook brand fan value examples:
- Oreo’s Facebook fan = $5.90
- Hubspot’s Facebook fan = $3.71
- Audible’s Facebook fan = $10.04
Recently, Facebook tested a feature that apparently told page admins which fans were valuable or irrelevant.
The test was first spotted by Inside Facebook reader Matteo Gamba. A Facebook spokesperson confirmed that this was something the site was testing, but the test has been called off. When asked if this could identify influencers, in terms of engagement, the Facebook spokesperson said, “Not necessarily.”
Gamba found this feature in the banned users section of his page’s settings menu. He was able to select from a drop down menu valuable or irrelevant, but both options resulted in zero results, Gamba said.
Facebook has been doing all it can to give marketers more of a reward for posting videos to the site. According to a study published recently by Facebook Preferred Marketing Developer Socialbakers, the number of videos Facebook admins directly upload to the site could soon surpass videos linked from YouTube.
Socialbakers analyzed more than 180,000 Facebook video posts from 20,000 Facebook pages, taking into account content uploaded to Facebook, as well as links to clips from YouTube, Instagram, Vimeo and others. The results show that Facebook has been quickly gaining ground on YouTube as the dominant video format.
Evan James, Socialbakers’ Head of North American Marketing, discussed these results in a blog post:
Back in 2012, marketers were not even considering alternative options for sharing video content on Facebook. The standard process was to create a video, publish it to YouTube and share it via Facebook. However, the recent trend is clearly showing that content marketers are directly uploading video content to Facebook, meaning that Facebook is retaining the traffic at the expense of YouTube.
Telecommunication brands continue to lead the pack in terms of responding to customers and fans on Facebook. According to Facebook Preferred Marketing Developer Socialbakers, Sprint was the most socially devoted major brand on Facebook in September, responding to 90 percent of comments and questions from fans.
Waggin Train Dog Treats was the leader in terms of post engagement rate, coming in at 15.92 percent.
Want to see what other brands performed well on Facebook engagement? Check out the infographic below from Socialbakers.
People say that the holiday shopping season starts earlier every year. Retail brands on Facebook should take note.
New data from Facebook Strategic Preferred Marketing Developer Marin Software shows that while brands traditionally go heavy on advertising in December, the most ROI-friendly activity happens two weeks before Thanksgiving — when people click on more Facebook ads.
Marin Software published a report outlining best practices this holiday season for Facebook advertisers: budget around user behavior, start early and sequence ad messaging, target based on intent and making sure ad campaigns are mobile-ready.
Marin’s Director of Product Marketing, Dan Morris, talked with Inside Facebook about strategies for the holiday season:
Advertisers are betting big in December. They’re investing heavily in advertising mid-December through Christmas. However, Facebook consumers may not be using Facebook to interact with ads during that same time period. We made the joke internally that, go figure, maybe Facebook users, instead of clicking on ads, they want to be sitting down and talking with friends and family. Consumers are starting to begin their shopping earlier and earlier every year.
Pages’ posts reach a smaller amount of their Facebook fanbase, but those who do see posts are engaging more and clicking on posts — according to a study by Komfo.
The study took into account 8,000 brand pages internationally from August 2013 to August 2014, finding that overall clickthrough rate is up 48 percent year-over-year, but fan penetration is down 55 percent year-over-year.
Komfo notes that in August 2013, the brand pages monitored were reaching 25.2 of their audience. That was cut to 14.53 percent in November, and now sits at 11.34 percent.
People use Facebook to share their latest thoughts and happenings, where they have been recently, what they have eaten recently and their thoughts on the recent news. Facebook is a place of sharing, with users sharing their opinions about anything with each other.
But when it comes to sharing, not all posts or comments will be positive. People will share their negative experiences they had with your products all over social media, and some of them can be really nasty experiences.
A new study by G/O Digital detailing shoppers’ habits with consumer-packaged goods (CPG) brands shows that shoppers polled turn to Facebook more often than Twitter when it comes to engaging with food and beverage companies.
The study found that 55 percent of moms and 47 percent of dads surveyed believe that Facebook is the most efficient social channel to converse with brands. Only 5 percent of moms and 7 percent of dads felt that way about Twitter. These parental shoppers were also more accepting of Facebook ads — 39 percent of moms surveyed and 42 percent of dads reported clicking on a Facebook ad at least once a week before going to their local supermarket.
Jeff Fagel, the Chief Marketing Officer of G/O Digital, discussed the findings:
The rise of social media has revolutionized the way retailers and brands approach their consumer audiences, creating a myriad of possibilities for marketers to gain shopper insights and leverage real-time data in order to drive in-store execution.
The value of social media channels like Facebook isn’t derived by posting hundreds of quirky photos, but instead, it’s about targeting every single social message, post, advertisement, coupon and offer to be as intuitive, personal, contextually relevant and engaging as possible. Only then will a CPG brand see the types of benefits that matter beyond brand building – like increased foot-traffic and sales in local stores.
How valuable are Facebook fans? YetiData and Collective Bias conducted a four year-long study of a major grocery store’s Facebook page (150,000 fans), discovering that Facebook fans of the store on average bought 125 more items than a typical customer — a 35 percent rise.
Additionally, Facebook fans who engaged with the page at least 10 times spent more than $1,000 annually than a typical customer, a 95 percent jump. Fans who engaged that much also visited the store 40 more times annually than a typical customer. Collective Bias managed the business’ Facebook page, posting content that would “lock in” current customers, as opposed to trying to lure in new customers with discounts or deals.
Bob Loos, the Director of Analytics at Collective Bias talked with Inside Facebook about how key engagement is when trying to convert Facebook fans into paying customers:
I think the general opinion is, “Why wait until you have them in the store to make them a buyer?” If you have very good content, then by the time they’ve engaged with this really great content, they’ve already, in their minds, used this product. You can convert before you have to win them in-store. … When you’re starting a new Facebook page, you need fans. But it doesn’t necessarily help to grow you fanbase if you’re not going to engage. You’re then throwing good money after bad. There’s a lot of test-and-learn that goes on when we post things on a page.
While most companies and brands can claim to be active on Facebook, a few go the extra mile.
Socialbakers, a Facebook Preferred Marketing Developer, tracks the most engaged and active Facebook brands each month. Among major brands, Waggin’ Train Dog Treats was tops in engagement, while T-Mobile was a superstar at answering fans’ questions.
Wondering how industry leaders are performing on Facebook? Check out the infographic below.