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BizReport : Social Marketing : June 23, 2011

Hitwise latest to find value of a Facebook fan

Marketers desperate to justify budgets and prove the effectiveness of social media strategies may be interested in some new data released by Hitwise's Robin Goad who believes he has determined the value of a Facebook fan in terms of traffic to a retailer's website.

by Helen Leggatt

Hitwise research director Robin Goad undertook the research in partnership with full-service social media agency Techlightenment. Together they determined that one Facebook fan is worth approximately 20 visits to a retailer's website over the course of one year.

How did they arrive at that figure? I'll let Hitwise explain.

"We took the top 100 retailers ranked in the Hitwise Shopping and Classifieds category and benchmarked visits to those websites against the number of fans those brands had on their Facebook page," writes Goad on the company blog.

"We then also looked at the propensity for people to search for those retail brands after a visit to Facebook using our Search Sequence tool."

Interestingly, even those retailers who don't have a Facebook page were found to greatly benefit from traffic from the social network. According to Hitwise top retailers that don't have a Facebook presence can still expect an average of 62,000 visits each month driven by the site.

Earlier this year daily deals platform ChompOn came up with values (in terms of gross revenue per action) for various social actions. To do this they analyzed the conversion rate and action for deals broadcast on Twitter and Facebook.

They concluded that the value of a Facebook 'Share' ($14) is worth the most. It is almost twice that of a Facebook 'Like' ($8), almost three times more than a Tweet ($5), and seven times that of a Twitter 'Follow' ($2).

"Admittedly, we believe the true value for 'Likes' and 'Follows' to be much higher due to creation of long-term loyalty," noted ChompOn in its findings.

Tags: ChompOn, Facebook fan, Hitwise, ROI, social marketing, social media, social network, Twitter

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