Be the first to know. Get our weekly newsletter.

newsletter_popup Join 25,000 of your peers. Get our stories delivered to your e-mail inbox every week.
Edit Interests

Articles Selected for You

No unread stories
 
ViralBlog Logo
Close this box

Sign-up to get the content you like


Our readers can personalize ViralBlog in Zite alike ways, and schedule e-mail alerts to get the most relevant answers to their specific questions.

Choose your sign-up method:

Could not connect to Twitter. Refresh the page or try again later.

 

By signing-up you agree upon our terms and conditions

 
22/01/2013 by
4817 views

What’s A Facebook “Like” Really Worth?

What do retailers Burberry, Starbucks, and Forever 21 have in common? Their brands are all in the top echelon of brand health, according to a new Facebook Likes Per Million (LPM) equation.

What’s A Facebook “Like” Really Worth? By Nick Hodson for ViralBlog.com

Brand strength has traditionally been measured by the number of consumers actively engaged with a product or service—often requiring marketers to employ costly, complicated analytics. Now there is an alternative.

Using a simple formula, you can calculate brand value according to the size of your brand’s Facebook community, adjusted for company size.

Simply measuring the total number of Facebook “likes” doesn’t provide a true indicator of your brand’s shape. Larger companies predictably attract more followers simply because of their scale, and that doesn’t tell the whole branding story.

To find out the true popularity of a brand, you also need to take into account the size of your company’s revenue stream. In other words, how many brand zealots do you have per million dollars of revenue?

At Booz & Company, we developed the Facebook LPM ratio to answer this question. LPM requires two steps. First, tally your total Facebook likes and divide them by your company’s revenue. Then, do the same thing for your competitors to find who is really winning the branding race in your industry.

This formula is immediately illuminating in comparing your brand with its peers and measuring overall consumer engagement. And it’s quick and easy to explain.

To test this theory, we evaluated a variety of consumer-facing companies in December 2011 and then again in May 2012 (see Exhibit 1 below). We found that company size doesn’t correlate with brand health. In fact, some of the leaders of the branding pack aren’t the companies with the most fans.

Specialty retailers Burberry, Forever 21, and Levi’s are winning the branding race over retail giants Walmart, Sears, and Target, when revenue to total brand advocates on Facebook is adjusted.

Similarly, Yahoo towers over Google, and Subway edges out McDonald’s, Pizza Hut, and KFC. See the following stats below:

What’s A Facebook “Like” Really Worth?

Many recent studies—and indeed a whole startup industry—have focused on trying to quantify the brand value of a Facebook “like”—whether it comes from a brand zealot (a truly engaged consumer) or a “mercenary” (a consumer who just “liked” your brand because of a particular offer).

Figuring out these numbers can be unwieldy, confusing, and inaccurate, which is why we simplified the equation.

The LPM formula isn’t a perfect measure, but it does offer a powerful and easy way to measure the impact of your branding activities in real time. Use LPM to track immediate spikes in brand value if you’re running a major campaign.

Regularly track the brand health of competitors in your industry, compared to your own, for a pulse check on your brand’s relevance. Tapping into these findings can help position you to accurately evaluate consumer engagement and brand strength.

Watch the video to find out how you can use Facebook to measure brand value:

YouTube Preview Image

What About You?
How does your company value a like? We’d love to hear your ideas in the comments below.

Follow & Share
Want to see more studies? Select our category Research & Cases, follow ViralBlog on Twitter, grab our RSS Feed or join our Facebook movement.


About the author

Nick Hodson is a Partner based in Booz & Company’s San Francisco office. He is a member of the firm’s Consumer, Media & Digital professional community. He has over 15 years of consulting experience, specializing in retail strategy and performance improvement.

 

Follow Category?

Follow Author?

Nick Hodson
3 more

Follow Tags?

advertisingFollowUnfollowfacebook likesFollowUnfollowlikes per millionFollowUnfollowlpmFollowUnfollowmarketingFollowUnfollowPoe mediaFollowUnfollowsocial networksFollowUnfollow
 

Comments (56)

  • Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

     
  • Bonus veren siteler 22/09/2023, 08:51

    I really love to read such an excellent article. Helpful article. Hello Administ . Shellerim.org

     
  • Deneme bonusu 22/09/2023, 16:49

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Shellerim.org

     
  • Online İngilizce Dersi al 01/10/2023, 01:25

    Thank you for great information. Hello Administ . online ders al

     
  • mosque carpet 15/10/2023, 11:33

    Everything is very open and very clear explanation of issues. was truly information.

     
  • hacklink panel 02/11/2023, 13:41

    Thank you for great content. Hello Administ. Website: hacklink

     
  • yün cami halısı 10/11/2023, 22:07

    Thank you for great article. Hello Administ .

     
  • Deneme Bonusu veren siteler 11/11/2023, 13:03

    I really love to read such an excellent article. Helpful article. Hello Administ . Website: Deneme Bonusu

     
  • Casibom Güncel Giriş 19/11/2023, 14:50

    Thank you great posting about essential oil. Hello Administ .

     
  • Casibom Güncel Giriş 21/11/2023, 00:22

    Nice article inspiring thanks. Hello Administ .

     
  • Casibom 21/11/2023, 10:39

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

     
  • After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

     
  • Thank you for great article. Hello Administ .

     
  • Thank you great posting about essential oil. Hello Administ .

     
  • Thank you for content. Area rugs and online home decor store. Hello Administ .

     
  • Diyarbet 10/12/2023, 03:49

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.

     
  • Great post thank you. Hello Administ .

     
  • sollet 11/12/2023, 10:35

    Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

     
  • venusbet güncel giriş 15/12/2023, 15:01

    Thank you great posting about essential oil. Hello Administ . venusbet venusbet

     
  • bonus veren siteler 15/12/2023, 15:18

    Thank you for great content. Hello Administ. venusbet deneme bonusu veren siteler

     
  • hdxvipizle 15/12/2023, 19:51

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

     
  • Thank you for great information. Hello Administ .

     
  • casibom 17/12/2023, 22:38

    Great post thank you. Hello Administ .

     
  • Betandyou 18/12/2023, 20:09

    Everything is very open and very clear explanation of issues. was truly information. Website : https://www.saricahali.com.tr/

     
  • cami halısı 20/12/2023, 22:54

    Thank you for great article. Hello Administ . Website : cami halısı

     
  • Casibom 22/12/2023, 15:33

    Everything is very open and very clear explanation of issues. was truly information.

     
  • Bahis Forum 23/12/2023, 17:37

    Thank you for content. Area rugs and online home decor store. Hello Administ .

     
  • Onwin 23/12/2023, 19:37

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Onwin , Onwin Giriş onwin

     
  • I really love to read such an excellent article. Helpful article. Hello Administ .

     
  • Thank you great post. Hello Administ .

     
  • Sarıca cami halıları 07/01/2024, 04:12

    Thank you for content. Area rugs and online home decor store. Hello Administ . Website : cami halısı

     
  • Good info. Lucky me I reach on your website by accident, I bookmarked it.

     
  • Thank you for great content. Hello Administ.

     
  • Diyarbet 18/01/2024, 10:30

    Thank you for great article. Hello Administ . Diyarbet

     
  • onwin 22/01/2024, 07:29

    Thank you for great information. Hello Administ . Onwin Giriş için Tıklayın onwin

     
  • onwin 22/01/2024, 17:14

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across.Onwin Giriş için Tıklayın onwin

     
  • Sahabet 23/01/2024, 04:16

    Thank you for great content. Hello Administ. Websiteye Giriş için Tıklayın. a href=”https://cutt.ly/SahabetSosyal/” title=”Sahabet” rel=”dofollow”>Sahabet

     
  • Sahabet 23/01/2024, 19:06

    I really love to read such an excellent article. Helpful article. Hello Administ . Websiteye Giriş için Tıklayın. a href=”https://cutt.ly/SahabetSosyal/” title=”Sahabet” rel=”dofollow”>Sahabet

     
  • Starzbet 23/01/2024, 19:41

    Thank you great post. Hello Administ .Website Giriş için Tıklayın. Starzbet

     
  • Starzbet 23/01/2024, 21:57

    Hi, just required you to know I he added your site to my Google bookmarks due to your layout. But seriously, I believe your internet site has 1 in the freshest theme I??ve came across. Website Giriş için Tıklayın. Starzbet

     
  • Starzbet 24/01/2024, 02:02

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader. Website Giriş için Tıklayın. Starzbet

     
  • Starzbet 24/01/2024, 03:21

    Nice article inspiring thanks. Hello Administ . Website Giriş için Tıklayın. Starzbet

     
  • Sahabet 24/01/2024, 15:22

    Thank you great posting about essential oil. Hello Administ . Websiteye Giriş için Tıklayın. a href=”https://cutt.ly/SahabetSosyal/” title=”Sahabet” rel=”dofollow”>Sahabet

     
  • Tipobet 24/01/2024, 22:12

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Website Giriş için Tıklayın: tipobet

     
  • Tipobet 26/01/2024, 09:58

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.Website Giriş için Tıklayın: tipobet

     
  • Tipobet 26/01/2024, 20:34

    Nice article inspiring thanks. Hello Administ . Website Giriş için Tıklayın: tipobet

     
  • Sahabet 27/01/2024, 01:54

    Thank you great post. Hello Administ .Websiteye Giriş için Tıklayın. a href=”https://cutt.ly/SahabetSosyal/” title=”Sahabet” rel=”dofollow”>Sahabet

     
  • Tipobet 27/01/2024, 04:21

    Great post thank you. Hello Administ . Website Giriş için Tıklayın: tipobet

     
  • Starzbet 28/01/2024, 09:16

    Thank you for content. Area rugs and online home decor store. Hello Administ . Website Giriş için Tıklayın. Starzbet

     
  • Tipobet 28/01/2024, 12:20

    Thank you for great information. Hello Administ . Website Giriş için Tıklayın: tipobet

     
  • Starzbet 29/01/2024, 09:21

    Good info. Lucky me I reach on your website by accident, I bookmarked it. Website Giriş için Tıklayın. Starzbet

     
  • Tipobet 29/01/2024, 12:10

    Everything is very open and very clear explanation of issues. was truly information.Website Giriş için Tıklayın: tipobet

     
  • CaSiBom 09/03/2024, 14:38

    Thank you great post. Hello Administ .

     
  • Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me.

     
  • Casibom 13/03/2024, 19:50

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

     
  • Nice article inspiring thanks. Hello Administ .