FAQ

This FAQ and Glossary helps you to understand how the Social Media Calculator is working.

How do you measure the social media value?

We multiply the reach with a platform multiplier.

For our calculation model, we take historical ad data from different social media platforms. We calculate a median of the cost per 1,000 impressions (CPM) and divide it by 1,000. For YouTube we take the cost per view (CPV) In the end we have the cost to reach 1 impression. This is our platform-specific multiplier. For example, you have to spend $ 0,05 to reach 1 impression on Facebook.

But there is a big difference between one person who saw your post and a person who interacted with your post. Interactions are more valuable. This is why we decided to combine the CPM with a qualitative factor – the interactions.

Engagement includes in our model likes, comments, and shares. If you take all engagements and divide them by reach, you will get the engagement rate.

In our model, we weight the different interactions: Like=1x; Comments=2x, Shares=3x. Then we get a so-called "weighted Engagement Rate". Is this rate over the benchmark, the platform multiplier will increase. Is the rate under the benchmark, the multiplier will fall. So all in all, the engagement can change the multiplier and in the end the social media value.

Why don’t you use just public data?

Some other tools are only working with the number of fans and the average engagement rate. We think this assumption does not address this issue in its entirety. In particular because social networks regularly change their algorithms and therefore you need more valid data. The only valid data are the insight data (reach and/or impressions).

What’s the difference between a ROI and the Social Media Value?

Our Social Media Value is just an monetary express equivalent for a public relations value. It shows how much an advertising would have cost instead of an organic social media post. The Social Media Value does not consider a return. Furthermore, a ROI is working with goals and with your own invest. All these things are not part of the Social Media Value.

Glossary

Cost per 1,000 people reached
This is the average cost to reach 1,000 people. Typically online advertisers look at CPM (Cost per Mil / 1,000 Impressions) but reach can be a more insightful metric than impressions.
Cost per 1,000 Impressions (CPM)
CPM is a common metric used mainly by online advertisers to gauge the cost-effectiveness of ad campaigns. In our model we use the CPM as an equivalent for the social media value. We compare the CPM of campaigns with the reach of your organic social media posts. For example, you spent $100 and got 10,000 impressions, your CPM was $5. If your organic post reach is 10,000 impressions, the social media value is $10 as well.
Cost per View (CPV)
CPV is an important metric to measure your cost per view on YouTube. Therefore advertisers pay per view of their ad. A view counts if the video was watched at least 30 seconds, or, if it is shorter than 30s seconds, if it was watched to the end.
Cost per Click (CPC)
The CPC shows how much a click costs you. The CPC is mostly used to measure clicks on advertisements or to measure clicks on special campaign links.