How much are your customers worth on social media?
A recent report has come out showing some impressive social media statistics for Facebook usage and profitability. The headline figures are*:
- Since Q3 in 2015, Facebook has grown to have 1.59bn users per month (up 40bn).
- 50% of the world’s internet population have an active Facebook account.
- Daily active users are up to 1.04bn users.
- Mobile-only users have increased to 51.7% of their monthly active users
- 80% of Facebook’s revenue is via mobile – mostly from advertising!
- Facebook took $5.841bn in revenue for advertising alone in Q4 (up $1.3bn from the previous quarter).
Pretty impressive stats!
But what we found the most interesting is the value that Facebook places on each individual, which varies per region based on the amount of advertising money spent and the active users within that area. With Europe spending half the amount that the US do on Facebook adverts, our ‘value’ has been calculated to be $4.50 per quarter ($18 per year or approx £10). This is still over the ‘Worldwide’ average value of $3.73 and up a third on ‘our’ worth in Q1 ($2.99).
How does this compare?
All social networks have different functions, are at varying stages of maturity with regards to advertising, utilise adverts in different ways and attract a variety of audiences, so there is no real comparison. They also do not like to nail their colours to any particular flag! However, Twitter has reported that each ‘logged-in’ user is worth $4 per year.
What does this mean?
Every click to your website counts! Not every fan or follower is created equal.
By this we mean, if you have a Facebook page with 10000 ‘fans’ and you are only getting 5 likes per update…not all your ‘fans’ are worth $4.50 per quarter.
Engagement and website referrals rule over fan or follower numbers. A business should take 300 fans where 150 of them take action on each post (50% engagement rate) over higher numbers for a lower return.
If you are noticing a decline in engagement, it may be time for a social media audit to check to see who you are posting to and what is or is not working. Ask yourself, are they your target audience? How were they acquired originally? Do you need to rethink your community growth strategy?
This is good news.
These reports and statistical data mean that every click to your website from Facebook, Twitter and other networks are worth something. It is time to add this information to your analytical data to see what your website ROI is from social media, even if you add value at a fraction of what is reported.
It doesn’t mean that a click from Facebook is 4 times more important than a click from Twitter. Surely a click is worth the same if the audience and tactics are right? We hope that this information from other social media outlets is more readily available in the future, to marketers, social media managers and businesses, to really be able to show the true worth of social media marketing.
Does your social media need an overhaul?