Calculating the “value” of a Facebook fan to an advertiser has become the social media equivalent of asking, “how many angels can dance on the head of a pin?” A new study says that value is about $10. The number was calculated by SocialCode, a research group, based on the extra it costs to trigger a Facebook fan into further engagement with a company’s brand, compared to a non-fan.

Before you get too excited, bear in mind that this is just one more study in a long string by various social media measurement agencies. Here’s how they break down:

• 2 cents: (offer for 500 new fans for $10.51; eBay).
• 57 cents: (offer for 1000 new fans for $57 by this fan-creating agency).
• $1.07: (the cost of advertising on Facebook that encourages a user to become a “fan”; Webtrends).
• $3.60: (as a media buy to reach 1 million fans; Vitrue).
• $9.56: (money saved in triggering a fan into a purchase or other action assuming a constant cost of $1-per-click, compared to the cost for a non-fan; calculated by SocialCode).
• $71.84: (extra amount fans spend vs. non-fans; Syncapse)
• $136.38: (average annualized value of total fan purchases; Syncapse).
• 20 extra visits to your web site: (vs. one visit from a non-fan; Hitwise).

None of the studies address the obvious fact that a person willing to become a Facebook fan of an advertiser is probably already buying that company’s brand. In other words, the extra value Facebook fandom adds for advertisers is $0 if the fan was already locked in.

If you want an extended discussion of Facebook fan value/angels-dancing-on-pins, The Brand Builder Blog will give you an idea of just how complex and quant-y this issue can become.

Source: SAI