It pays for businesses to invest in social media, according to a recent study that revealed how each Facebook ‘like’ to a brand’s page is worth $174.14. This was almost a 30 percent increase since 2010. This came as welcome news to marketers and brands seeking solid metrics on the true profitability of these popular social platforms. BusinessNewsDaily.com offered a closer look at the research and results that showed how social media marketing can really pay off.
Conducted by social intelligence firm Syncapse, the research determined the value of a Facebook ‘like’ by analyzing more than 2,000 Facebook users who had liked a brand. It examined a variety of factors, such as likelihood to recommend, product spending, brand affinity, loyalty, and media value acquisition cost.
Researchers found that Facebook fans spent an average of $116 more each year on the brand than non-fans, despite not having a higher income. Fans also felt 18 percent more satisfied with the brand and 11 percent more inclined to keep buying the brand than non-fans.
One of the main takeaways from the research was that brands which are able to identify their key customer segments can produce more targeted social media messaging and relevant promotions, which can subsequently increase both revenue and customer loyalty.
The study advised brand managers to strive to cater to these fans because they’re much more likely to be actively engaging in social media and tend to be more outspoken with their opinions and recommendations. These fans frequently share their brand experiences and discoveries via social media, yet they’re just as likely to share negative experiences as positive ones.
The study also encouraged brand managers to interact with these fans to better understand why they favor the brand, as well as to groom them as brand advocates by encouraging a sense of ownership and a feeling of being valued by the brand.
Since a brand’s Facebook fans are usually its greatest supporters, brands should allot a major part of their social media marketing investment toward keeping these fans feeling satisfied, appreciated, and vital to the brand’s success.
Overall, researchers concluded that the rise in average ‘like’ value was driven by the likelihood of these fans to become loyal super-consumers who engage more, advocate more and ultimately spend more to support their favorite brands. The enormous value of these fans clearly validated a brand’s social media marketing spending and should encourage greater investment in years to come.
MDG Advertising, with offices in Boca Raton and New York, NY, is a full-service advertising agency and one of Florida’s top creative ad agencies. MDG specializes in developing integrated marketing solutions, exceptional creative executions, and solid branding and media-buying strategies that give clients a competitive advantage. Our core capabilities include print advertising, branding, logo design, creative, digital marketing, creative media planning and buying, radio and TV advertising, Web design and development, email marketing, social media marketing, and SEO. For the latest on Facebook and social media marketing trends, contact MDG Advertising.
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Written by Michael Del Gigante