Fans on Facebook worth $3.60 Each

A new social media study released by Virtrue reveals good news for companies with a presence on Facebook.

According to the study, the more fans on Facebook that a company has, the better, as each one is worth $3.60 in equivalent media. When this calculation is applied to fanpages with one million fans, this becomes $3.6 million annually.

Vitrue made these calculations by examining its clients’ data to find the wall post to Fan ratio. In other words, to find out how many impressions a wall post receives based on the number of fans that the company has. The average ratio was found to be almost 1:1, meaning that if a company has one million fans on Facebook , it gets an average of one million impressions per wall post. Based on a company making two wall posts per day for 60 million impressions per month, Vitrue then applied a $5 CPM (cost per mille or cost by thousand) and arrived at the following conclusion:

Impressive as these numbers might be, it is important to remember that this study is not weighted for brand recognition and is based on a company having one million fans on Facebook . However, it is still yet indicator that uses for Facebook are by no means restricted to keeping in contact with friend and family. The commercial potential in social networking is immense, as the CEO of Vitrue, Reggie Bradford acknowledged. Commenting on companies having a presence on Facebook, Bradford said to Mashable :

“It’s no longer an option. It’s a necessity.”

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