You are worth more than $1.07

They say you can’t put a price on friendship, but how about Facebook Fans? In early February, the WSJ ran a great article discussing a Webtrends’ whitepaper which found the cost of advertising on Facebook to encourage users to become a “fan” on the brand’s Facebook page is $1.07.  Personally I had hoped I was worth at least…three times that!

Now obviously this metric is going to change based on the industry and company, but I think it unwise for a brand to focus too much on this way of thinking, viewing fans in terms of acquisition cost on the social networks. Fans cannot simply be categorized into commodities that can be purchased. In fact Dennis Yu of BlitzLocal recently presented at a conference I attended, and had some fantastic points regarding this issue. He adroitly pointed out that the people who love you on Facebook, will hate you if you advertise (think of those ads on the side of the page) to them too much. You can’t look at Facebook marketing solely through the CPC lens.

The study shows that it is getting more expensive and far more difficult to get clicks through paid advertising.  Frankly I think users are just getting used to ignoring the ads. Creativity has to increase in order to earn clicks. Brands will have to turn to new ways to get fans, not being able to rely on a CPC strategies. So the question that looms is, how do you acquire more fans then?

You empower your digital audience and mobilize them into an evangelizing army of ambassadors who market for you. You create incredible content that is different and unique… and then you inspire them to start sharing. Mr. Yu had another great point, which do you remember more, the banner ad you may have seen yesterday or what your friend told you? Your fans are a force to be reckoned with, and they should be treated as such.

Currently a quarter of all internet time in the US is spent on Facebook. There are over 600 million active users on the site. With so much happening on this incredible site,  brands cannot afford to take their fans lightly and assume that once they are in the door, they are there to stay. Many “likes” never return to the fanpage, in fact over 90% never do. To give the great Seth Godin a shout out, it is time for some Purple Cow thinking for Facebook marketing.

Lastly, there are many brands who have enormous digital followings, but do not have a Facebook following indicative of their online strength. Many of these brands probably shy away from starting the race to acquire fans as they don’t want to appear to have too few fans. What is the value of the overall number of Facebook fans your page has? While individually you may not be able to price them, as a collective number, every brand can benefit from having more fans. So get on Facebook, start creating amazing things, give people a reason to share, and watch it grow!

 

 

 

 

 

Comments

comments

2 responses to “You are worth more than $1.07”

  1. remote tank level monitoring systems

    A very usefull blog – big thanks I hope you dont mind me writting about this article on my site I will also leave a linkback many thanks

  2. Scott Schimmel

    Thanks, Ryan- reminded me to dial back my ‘advertising’ to my friends, or at least balance it with authentic, personal posts. Appreciate it!