When you see a person who has been given more than you in beauty and money, look to those who have been given less.
Facebook’s acquisition of Instagram has immediately sparked fears of another dotcom bubble, turning a handful of bright entrepreneurs into overnight multi-millionaires but threatening to leave a wider pool of investors with their fingers badly burnt.
Kevin Systrom and Mike Krieger, the two young Stanford University graduates who developed the addictive photosharing app, will make around $400m and $100m respectively from the deal. Mr Systrom, who turned down a job offer from Facebook in 2004 in order to finish his studies, joked that the sale will enable him to afford a few more bottles of Champagne. With that sort of money he could buy the Champagne producer and a lot more besides.
Facebook has doubled the value put on Instagram just a week ago, when it closed a $50m funding round from investors including Sequoia Capital. Put another way, it has paid $80m per employee and more than $33 for every one of Instagram’s 30m users. It’s even valued the company ahead of The New York Times, which has a market capitalisation of $942m.
my cousin with me.
What’s the value of a social follower? And does a fan on one platform, and their actions therein, have more value than that of another?
It’s a contentious issue. Moreover, are fans acquired by a promotional campaign, such as Facebook cost per click (CPC), less valuable than those who are attracted organically?
Tapping into the latest research, Imbue Marketing have taken a closer look at the value of social following in this attractive infographic.
Key takeaways include:
- 47 percent of customers are somewhat more likely to purchase from a brand that they follow or Like
- 63 percent of companies say social media has increased the effectiveness of their marketing
- A share on Facebook is the most highly-prized action in social media, with a value of $14, ahead of a Facebook Like ($8), Twitter tweet ($5) and Twitter follow ($2)
- Moreover, Facebook fans are cheaper to recruit via a promotional campaign, with an average cost per Like (ALWAYS the key metric, as opposed to straight CPC) of $1.07
- Meanwhile, a cost per follower on Twitter is a somewhat heady $2.50-4.00