The firm calculated this using a wide range of clients and their 45 million aggregate fans before coming to the annual valuation. A couple assumptions they make right up front are that each status update posted by the brand generates an average of 1 new media impression for each fan of their brand. They also assume that the brand is posting two updates per day. Lastly, they placed a value to each impression by assigning a $5 CPM which translates to $300,000 in earned media per month or $3.6 million annually for a fan page with 1 million fans. Here is the mathematical equation if you’re interested:
1M impressions x 2 posts x 30 days = 60M impressions
60M impressions / 1000 x $5 CPM = $300,000
$300,000 x 12 months = $3.6M
$3.6M / 1M fans = $3.60
John Lawson is a top rated analyst, speaker and consultant. John is the CEO of 3rd Power Outlet and the founder of the award-winning online business industry blog at ColderICE.com. Formally of Accenture consulting, John grew his home-based business to Platinum eBay Power Seller & Top-Rated Amazon Seller status on eBay and Amazon. In recent years his social media personality has amassed a following of over 51,000 Twitter followers and over 300,000 views on YouTube.
The firm calculated this using a wide range of clients and their 45 million aggregate fans before coming to the annual valuation. A couple assumptions they make right up front are that each status update posted by the brand generates an average of 1 new media impression for each fan of their brand. They also assume that the brand is posting two updates per day. Lastly, they placed a value to each impression by assigning a $5 CPM which translates to $300,000 in earned media per month or $3.6 million annually for a fan page with 1 million fans. Here is the mathematical equation if you’re interested:
1M impressions x 2 posts x 30 days = 60M impressions
60M impressions / 1000 x $5 CPM = $300,000
$300,000 x 12 months = $3.6M
$3.6M / 1M fans = $3.60