Money vs. fans (5 posts)

  • Many people spend a lot of money on facebook ads to gain more fans for their FB pages, but generally do not know if the campaign was successful because they have no point of comparison. If you spent $100 and gained 40 fans…is that good or bad? are you doing the right things or doing wrong?

    I think it is a question asked by many people who are starting to use facebook ads as an advertising medium.

    What is a appropriate average range of gained fans vs. spend money?

  • That’s a double sided sword. It depends on so many other factors other than how much you spend on ads. Content is king. If your page has engaging content people are interested in, then you will get more. If not then don’t expect your retention rate to be very good.I hope this helps. Cheers!

  • wow, tough question.

    and one that i dont think will ever get answered correctly for anyone.

    depending on your business a “fan” can keep buying from you over and over again.  so even if you spent $100 and got 1 fan, he/she can earn that back 10 times over.

    even though were quick to monetise every aspect of our business, there just simply isnt the right metrics with which social media can be quantified.

    even thinking well into your post there are just far too many variables to work out a formula for your request.

    if you spend 100 on fans and get 50, then put up a sale on FB to which 75 people buy (25 new likes and 50 existing) how do you work out the “value” in that??  its something thats far too difficult to work out and time spent on it should be time spent on your facebook page  :D

    @sgsrecording i used to think content is king, though its a little bit more than that  :)   i blogged about it here

    :D

  • Great question @fernandocortes!  So many people want to know the ROI (especially of social media) and it’s not always clear or easy to measure.  
    I think there can be a couple of factors.  You need to know what percentage of your fans buy things from you when you put a sales message up.  Have tracking in place that you can track sales from Facebook vs other platforms.  If you are getting people to sign up for your e-mail list, as well as like you on Facebook then that $1 spent on the fan might be even more valuable.  I track what percentage of my e-mail list buys from me on average.  

    When you know those figures then you know how much you can spend on an ad campaign.  The problem with all the return on investment tracking is that it takes time and usually people don’t want to put in that time to figure it all out.  

    But if you are asking a straight benchmark question on how much people pay for fans through ads, that figure varies widely by industry and page.  I know people who have pages like “I love my dog” and you can advertise those and get tons of cheap fans because it’s easy to target and easy to click like.  But there are other industries where even with optimized ads you can pay $2/fan.  I recently ran an ad and paid about $0.70/fan.  So you have to experiment with ad optimization and what works in your industry.

  • Thanks for you detailed answer @andrea-vahl
    I think this clarifies the picture.


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