Some of the best users of social media are the people traditionally thought of as the weakest at marketing. Authors have become experts at using Facebook, and in particular Twitter, to stay in touch with their readers and build their brands. Neil Gaiman, for example, the British author of American Gods, Coraline and the Sandman comic book series, skips Facebook but maintains a blog on Tumblr and an active Twitter account with more than 1.65 million followers.
He uses his stream to talk about books, to interact with his fans and also to promote the events in which he participates with his wife, performer Amanda Palmer.
It would be great if we could put a figure on the value that sort of activity can bring for a business.
Fortunately, we can.
Gaiman recently tweeted that he had been offered $12,500 from a fast food company to tweet a recommendation to their restaurants. That valued his followers at around 7.6 cents each. (He turned the offer down.)
Or rather this offer valued the Twitter contacts as an advertising resource at 7.6 cents each. According to research firm Nielsen, the typical short-term return on an advertising spend is nine cents for every dollar. That fast food company then was expecting Neil Gaiman’s 1.65 million followers to immediately spend at least $13,625 in their restaurants if Gaiman were to endorse them, valuing them at a little over 8 cents each.
Indirect Endorsements Are Lazy Advertising
But celebrity endorsements like these have limited effect. They are what ad man hero Don Draper dismissed in Mad Men once as “lazy advertising.” Neil Gaiman does not tweet about restaurants so the fast chain was hoping that his star power — and most importantly, the trust that his timeline has built with his followers — could translate into some cash.
Presumably if Neil Gaiman were to recommend a book, the result would be far more valuable. And if he were to start talking about one of his own books, a novel that he was about to release, it would be more valuable still.
That is where your business’s online presence kicks in. It is much harder for small or medium-sized business to pick up a following as large as a superstar author’s. And it is harder to build with corporate customers the same level of trust and personal closeness that Neil Gaiman has managed to build with his fans.
But all of that effort — the tweets and the images, the opinion-sharing and the responding — does have a real value.
It is something that is easily forgotten as you are doing all of the social media activity that you are supposed to do to build a business. There’s no immediate return from answering a tweet or posting your opinion about a new product accessory. There is no sudden rush to your website when you write a comment about a conference you’re attending or a colleague you just met with a great idea.
But all of that activity continues to build an asset. It deepens the relationship you have with your followers — and it adds a few numbers to the value of that relationship so that when you’re ready to cash in with a product announcement, you can save more than 8 cents from every follower.

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