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Big brands, small brands, and EVERY brand that is building a community of targeted traffic on a social media platform are also building intrinsic value for their company. Hooray! Their efforts equate to marketing power and real dollars.
Why? Because this community is comprised of potential customers, reaching them has an equivalent offline media price.
Social Media Marketing Traffic Equals Value
Attracting eyeballs has historically cost advertisers hard-earned dollars in the traditional media world.
Now, these same advertisers capture the attention of their target market through social media platforms. I would go so far as to argue that social media platforms if used wisely and strategically, can be more valuable than traditional media vehicles.
Social Media Marketing Traffic is Niche-Specific
Social media traffic can be highly niche-targeted, and those potential customers are usually eager to be heard and want to engage in meaningful discussion. When a two-way interaction is initiated, the company begins to develop a very real relationship.
The Value of a Social Media Fan
For example, Facebook Fans (now “Likes”), have committed to the relationship by associating their profile with that of another profile, often a business. Those commitments have now been valued. According to an AdWeek article by Brian Morrissey, quoting social media specialist Vitrue, the social media value of each fan (I use the term loosely since Facebook converted to “Likes”) is $3.60.
Starbuck’s Social Media Value on Facebook
Vitrue arrived at its $3.6 million figure by working off a $5 CPM, meaning a brand’s 1 million fans generate about $300,000 in media value each month. Using Vitrue’s calculation, Starbucks’ 6.5 million fan base — acquired in part with several big ad buys — is worth $23.4 million in media annually.
For the full AdWeek story, see Value Of a Social Media Fan
Do you think the value of a ‘Social Media Fan’ or ‘Like’ will eventually be recognized by Generally Accepted Accounting Principles (GAAP)?
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For more resources, see our Library topics on Marketing and Social Networking.
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ABOUT Lisa M. Chapman: With offices in Nashville Tennessee, but working virtually with international clients, Lisa M. Chapman serves her clients as a business and marketing coach, business planning consultant, and social media consultant. As a Founder of iBrand Masters, a social media consulting firm, Lisa Chapman helps clients establish and enhance their online brand, attract their target market, engage them in meaningful social media conversations, and convert online traffic into revenues. Email: Lisa @ LisaChapman.com
