A Facebook ‘Like’, what is the value of it?

Last week I went fencing with some friends and we got a discount of €300,-. This because we promised to like their Facebookpage. We were with a group of 30 people, thus it would mean that every person got a discount of €10,- each. Afterwards I thought by myself, was this discount reasonable or could we have asked for more discount?

You post a photo on Facebook to show your friends what you did that day or maybe to make them jealous. Your friends see your post and like it or not: How many likes do you get on average?facebook_statistics_by_sedj-d3dw2uc

Because of the growing use of Social Media nowadays, companies must have marketing strategies and it is important to look for the social engagement for their brand. The more likes, the more credible it is for their customers and the better a company would perform.

I started researching the internet about the value of a page like and post likes. A page like is in my point a view very valuable for companies, it says something about the reliability of the brand’s content. If you look at the Facebook page of a company with lots of likes you automatically trust the brand more than a unknown company Facebook page. According to the research of Syncapse, one like was $174.17worth in 2013 (what would be about €130). This is concluded after a research in which they looked at two thousand Facebook users, who liked a certain brand, how much money they would spend on this brand, if they would recommend it and if they would purchase at the competition(Lobosco, 2013).

So if this would be true, you could calculate the  total company value if you multiply the number of likes by the value of one like? Sadly there are more factors who influence the value of one like. Pages are liked in more than 35 percent of the cases for participate in a contest,  to win all sorts of prices. Thus by setting out a contest, companies try to get as many people likes on their page. These kinds of contests calls not loyal ‘fans’ to like a page, they just want to win and are not real customers who are engaged to a brand.

In my opinion the value of one like really depends on in which stage the company is, the size and the interaction. The likers must be active and engaged to your company to be valuble. If a company operates locally and just started it is important to collect ‘likes’ and  publicity in their operating segment. Furthermore, because of the importance of social media in our life, and the average time spend on social media we should not underestimate the power of Socail Media and the ‘likes’. I think the discount was too big for the effort and our engagement to like the Fencing page.

‘What is your opinion about the value of likes? And when Facebook would include a ‘Dislike’ button on their site, what do you think will happen’?




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2 responses to “A Facebook ‘Like’, what is the value of it?”

  1. 419214fh says :

    I understand that your blog is written from the liked companies point of view, though, I would like to make a comment with a broader view of what a Like is worth for businesses. I think that the question that precedes the question of what a like on Facebook is worth, is what determines the value of a like on Facebook? We know that this is not just a like so that a company can keep its followers posted about developments and target marketing, companies such as Facebook are collecting huge amounts of data this way, people liking things are even not aware of it most of the time. The point is that there are more ways to determine the value of a like apart from computing the ROI of these people. An easy example of statistics…. If you like R&B music, Amazon, and Starbucks, so many things can be derived from this information only if you can make statistical inferences from a bigger database. Things like the chance that you will click on an advertisement of a suggested company can be calculated very accurately. As a result, you will maybe like the suggested company resulting in more personal data for Facebook so that they can even make more accurate predictions about you. This illustrates that it’s not that easy to label a like with a price tag. We are at a point that we know that data becomes an valuable asset for companies, the matter is that no one knows how to exactly determine the value of data…It might be true that the value can’t be determined since there is an infinity of statistical inferences possible to be made with data resulting in valuable findings.

  2. 349430am says :

    According to IBTimes UK (2015) Facebook is indeed soon coming with the dislike button. I think there will be consequences for companies that use Facebook for their marketing strategies. Logically, dislikes will create a negative image of a certain company.
    I think Facebook will fulfill the same kind of role as review websites for potential buyers, when the dislike button will be introduced. It is not clear yet how the dislike button precisely will be used. But seeing the ratio between likes an dislikes potential buyers can draw a fast conclusion (negative of positive) about a certain company. Which could be crucial for a potential buyer to trust a company.

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