What is the value of a "fan?" In other words, can we quantify the business value of social supporters of brands?
A study of Christmas and holiday promotions by Amazon, Best Buy, Target and Walmart suggests that social engagement can drive better results, at least as quantified by visits to retailer online sites.
The data suggets that earned social media impressions can stack up favorably against paid ads for brands that are effective with their social efforts, at least i terms of website visits.
Using an estimated value for earned impressions of $3.55 cost per thousand, Walmart earned $417,000 worth of impressions while Best Buy earned $86,000 in impressions.
When looking at the lift received from promotions that started in November 2011, all four brands received a lift of 2.2 times or higher. Target received the highest lift between October and the end of November at 3.5 times.
For most retailers, a significantly higher percentage of fans and friends of fans visited the retailer’s website, as compared to the rest of the Internet. About 64 percent of Amazon’s fans visited Amazon.com, compared to 27 percent of the total Internet.
For Best Buy, 18 percent of fans and 13 percent of friends of fans went to BestBuy.com, compared to eight percent of the total Internet. Earned social media: