Research: How much is a Facebook Fan worth? US$174, says Syncapse

According to the study "Why consumers become Brand Fans" developed by Syncapse, the average value of a Facebook Fan is $174 across key consumer categories. This is an increase of 28% since 2010.

Syncapse’s Fan valuation methodology includes the following key drivers: spending, loyalty, propensity to recommend, earned media value, acquisition cost and brand affinity. "The effect is amplified given the exploding number of Fan memberships among the twenty major consumer brands under study; they have doubled, tripled or more", according to the study.

The 20 major brands included in the study were Mc Donalds, Zara, Disney, XBOX, Skittles, Nike, Adidas, Victorias Secret, Coca Cola, BMW, Walmart, Subway, Dr Pepper, Levis, Oreo, Target, H&M, Blackberry and Monster.

One of the most significant attributes of brand Fans is that they typically do not fan a brand without trying it first. 78% of Fans were users of respective brands

Exceptions to this rule can occur with passion and aspirational brands that are price prohibitive. For example, the one brand in this study that demonstrated this phenomenon was BMW, where the usage rate for Fans was 36%.

Since being a brand user is usually a prerequisite to becoming a Fan in consumer goods categories, according to the study marketers should prioritize their Fan acquisition investments on converting existing customers. Not only is acquisition cost and conversion friction lower, but the investment in a higher quality Fan base will
reap rewards down the line, and this is true for both lower-cost and higher-cost consumer brands.

Other conclusion from the study is that higher quality Fans tend to attract greater numbers of other high quality Fans, and they also tend to advocate more. Establishing a direct channel with Fans (who are customers) also empowers marketers to communicate more effectively and upsell to their most valuable audience segment.

Why consumers become Brand Fans?

49% of brand Fans cited a desire “to support the brand I like” as a reason for becoming a Fan -- making it the most popular reason across all brands. 42% of the fans said they have become fans to get a coupon or discount and 41% said they want to receive updates from the brand they like.

reazons.facebook

While transactional offers and incentives are prevalent reasons, emotional and relationship motivators were more universal.

reazons.fans.by.brand

Metodology: Based on a valuation model developed by Syncapse, the survey research for this study was conducted by Hotspex and consisted of a 25-minute survey using its online panel. After screening a large mega panel of U.S. consumers, data was collected from 2,080 panelists in Q1 2013. Respondents self-identified as Fans by indicating which brands they have “Liked” on Facebook. Next, information on past and projected future behavior was collected both at the category and individual brand level.

Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

Miami Tech Investors Provide LatAm Entrepreneurs with Path to Growth

We sit down with Raul Moas, the managing director of Accelerated Growth Partners (APG), a Miami-based angel investor network that provides capital to entrepreneurs in Miami, to discuss the city’s exciting startup scene, and how it has fostered the growth of Latin American businesses.


Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

Ad-Tech Play The Trade Desk IPO’s at Higher than Expected Price

California-based ad tech company The Trade Desk, Inc. has officially gone public on The Nasdaq Stock Market.The Trade Desk debuted on the Nasdaq at US$28.75 as opposed to the company’s US$16-to-US$18-per-share projection.


How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

How Brands Can Use Fan-Generated Video Content in Sports Marketing Campaigns

Sports marketing experts talk about what self created fans’ video content represents to them, at Portada’s Hispanic Sports Marketing Forum, held in New York on September 14.