June 1st, 2012 by Tan Wei Shen under Commentary

The price of engagement

How much are our efforts on the social media worth?

For some time, I’ve been unable to answer clients’ questions on how they should value the entries they obtain through the social media. “How much is this blogger’s post worth?” “How much is a tweet about my client’s product in financial dollars?” Here at JamiQ, we deal with a lot of measurement and big data, but because of the different context of these posts (for instance, how would you differentiate the value between a Foursquare check-in on Twitter vs an actual Tweet about your client’s F&B outlet? Hint: I don’t think you can! Not yet anyway.), it’s often really hard to ascribe a fixed value to these posts.

But we all have to start somewhere. Cloud security company Backupify takes a more general approach in calculating the value of social media posts – taking each company’s estimated annual revenue and dividing it by the number of items of content.

This allows us to arrive at these magic numbers: a Tweet is worth USD$0.001; while a Facebook share, USD$0.024. Which means realistically, if you wanted to get 10 USD$ worth of value from Twitter alone, You would need a staggering 8,896 tweets about your product or brand.

(You can view the infographic here and the original post on it here!)

Of course, this is a really base calculation that doesn’t take into account the more indirect aspects of social media, such as the value obtained from additional eyeballs from the post, number of conversions to direct sales, etc. What it does show however, is the staggering amount of chatter and data present across the various mediums – and how the true value of engagement is often lost against the backdrop of the sheer total volume of chatter across social media.

How do we determine “true” value then? There isn’t a standard answer across brand or industry, but I can tell you – I am pretty sure it involves taking a stab in the dark and spending an arbitrary amount of money first.

More to be shared on this next week!

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