LOS ANGELES: Social media marketing agency Fanscape unveiled a formula it says accurately calculates the elusive business value of a social network friend.
Dubbed the Social Relationship Value Formula and released in a white paper to clients and on the company's website yesterday after six months in the making, the formula underscores a critically debated issue as PR and communications pushes social media strategy to clients, but struggles to prove ROI.
The formula looks like a calculus equation and considers 10 separate variables, including the number of fans or followers, spending per follower and retention and conversation rates.
Fanscape CEO and co-founder Larry Weintraub said the formula is a reaction to clients wanting to justify social media spending. Though he's yet to put the formula into practice, he said his clients, which include MTV and video game maker Electronic Arts, are eager to try it.
Weintraub welcomes criticism of the formula and said: “We would like people to poke holes in it and get people talking.”
The Facebook and Twitter app Vitrue and social media consulting firm Syncapse also offer their own social network value assessment tools.
“For PR and communications, all we are saying is hopefully this helps your measurements. You are under the same fire as anybody in measuring results,” Weintraub said.