Experian Hitwise U.K. research director Robin Goad posted on the research firm’s analyst blog:
We are constantly asked: “What’s the return on investment with advertising on Facebook?”and until now, that has always been a difficult question to qualify precisely. Leveraging our unique data sets, we now have an answer: For retailers, each new fan acquired on Facebook is worth 20 additional visits to your website over the course of a year.
Facebook is the second-most-visited website in the United Kingdom after Google and is now the second-biggest source of traffic to other websites, as well. One in every six page views from U.K. Internet users goes to a Facebook page, and 20 million hours are spent on the website every day from U.K. users alone.
With this in mind, we’ve decided to launch a new service today in partnership with social media experts Techlightenment that allows brands to acquire thousands of new Facebook fans and then analyze other behaviors these fans exhibit online. We’ve very sensibly decided to call this our Facebook Fan Acquisition and Analysis service.
Our data show that for the top retailers, even if they have no Facebook fans, they can still expect to receive on average 62,000 visits from Facebook each month. However, by utilizing this new service, brands can more rapidly build a fan base within Facebook and therefore drive more traffic to their website. Within retail, each new fan acquired will drive an additional 20 visits to a retailer’s websites, which, in turn, will generate extra sales both online and offline.
The Syncapse study, released this month, found an average of $71.84 more per year spent on a brand by its fans, and they are 28 percent more likely to remain loyal to that brand. Syncapse arrived at its figure of $136.38 by considering factors including spend, loyalty, recommendations, earned media value, and cost offset for fan acquisition.
And Vitrue used the following equation to arrive at its figure of $3.60:
1 million impressions x two posts x 30 days = 60 million impressions
60M impressions / 1,000 x $5 CPM = $300,000;
$300,000 x 12 months = $3.6M;
$3.6M / 1M fans = $3.60
How much do you think a Facebook fan is worth to a brand?