Every wondered what the value of a Facebook share or Twitter follower is?
Well a new report from Chompon.com (PDF) starts to answer those types of questions as their research allows them to put a value of social action in e-commerce transactions.
In generating the report, ChompOn focused on the immediate next sale, which means that these numbers are low. That being said, they do provide a starting point in discussing the value of social actions.
- Facebook Share: $14
- Facebook Like: $8
- Twitter Tweet: $5
- Twitter Follow: $2
To how did ChompOn calculate these values? Here is their methodology:
- For shares and tweets, we were able to directly attribute sales to the original action, so we simply took the total revenue attributed to each action and divided it by the total number of shares/tweets.
- For likes and follows, we had to estimate attribution by looking at our traffic references and subtracting out purchases made through shares/tweets as well as purchases made through direct traffic.
- None of our analysis captures long-term value of customers acquired through these social channels – which means the true value per action should be even greater.
- Gross revenue depends on the products/services being sold, but due to the diverse set of ChompOn publishers, we still feel the comparison between actions is reasonable.
What do you think of these values? If you took into consideration the long-term loyalty value, how much does that change these numbers?