RIM’s Facebook Fans Worth $245 Million According to Syncapse

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Syncapse is a company that specializes in social networking for brands and corporations and develops software called SocialTRAC. The software attempts to analyze purchasing habits and brand loyalties in order to determine social value. The company has said that the fans of BlackBerry on Facebook are valued at $245,214,042 (or $83.98 per user).

The idea that RIM’s 3M or so Facebook fans could be worth $245M seems far fetched. The company that is promoting these numbers has an obvious motive to inflate the value of social networks in order to promote the value of their product SocialTRAC. Also, the numbers don’t seem to add up. The official BlackBerry Facebook page has 1,149,891 users, and Syncapse is clearly including the 23 related pages for BlackBerry. These pages include all of the carriers and regions that would probably have duplicate users across several pages.

Compare these valuations with monetized social games and you get an idea of just how ridiculous an $83.98 per user valuation really is. EA bought Playfish for around $400M, and the company had 60M active users monthly. These users had direct spending which resulted in around $75M in yearly revenue for the company. At this revenue level, users were valuated at a mere $6.6 each. How much revenue is directly attributed to BlackBerry fans on Facebook? Zero.

While brand awareness and reach does have value, you have to make these numbers relative to real spending in order to get accurate valuations. The only per user valuation I have seen as high as Syncapse’s valuation of BlackBerry users on Facebook is LinkedIn users, which according to Web 2.0 Weekly, were valued at around $88. These users are owned by LinkedIn and therefore LinkedIn has the ability to sell them and collect revenue from premium services. RIM can’t do anything with their Facebook users other than message them and collect basic demographic details.

Overall, it looks like Syncapse has to completely reevaluate how their software works.

  • http://twitter.com/dapshore dapshore

    Users can be valued in 2 ways – how much they generate (in revenue and hopefully profit) or by what someone else is willing to pay for them (because of what the investor thinks a user can generate in revenue/profit). As we saw with AOL/Bebo – that can change very dramatically in a fairly short time. AOL paid ~$38 per Bebo user when they acquired it in 2008 – and sold Bebo for under $1/user just 2 years later. See my updated Web 2.0 chart (page 26) here: http://scr.bi/cP2vLx

  • http://twitter.com/dapshore dapshore

    Users can be valued in 2 ways – how much they generate (in revenue and hopefully profit) or by what someone else is willing to pay for them (because of what the investor thinks a user can generate in revenue/profit). As we saw with AOL/Bebo – that can change very dramatically in a fairly short time. AOL paid ~$38 per Bebo user when they acquired it in 2008 – and sold Bebo for under $1/user just 2 years later. See my updated Web 2.0 chart (page 26) here: http://scr.bi/cP2vLx

  • http://twitter.com/dapshore dapshore

    Users can be valued in 2 ways – how much they generate (in revenue and hopefully profit) or by what someone else is willing to pay for them (because of what the investor thinks a user can generate in revenue/profit). As we saw with AOL/Bebo – that can change very dramatically in a fairly short time. AOL paid ~$38 per Bebo user when they acquired it in 2008 – and sold Bebo for under $1/user just 2 years later. See my updated Web 2.0 chart (page 26) here: http://scr.bi/cP2vLx

  • Bry79hc

    wow
    it's too bad fb for bb sucks
    who do i talk to get my $84 back?

  • http://www.socialtalk.com/ Meg@Syncapse

    Hi Kyle,

    To offer some clarification, this finding came from a research study we conducted in June with Hotspex Market Research. We surveyed 4,000 online panelists across North America to come up with an average fan value for twenty of the top brands on Facebook (in addition to BlackBerry).

    We found five major contributors to Facebook fan value: product spending, brand loyalty, propensity to recommend, brand affinity, earned media value and fan acquisition cost. The value we assigned to Facebook fans for each of the twenty brands represents an average of these five factors.

    If you haven't seen it previously, I’d like to invite you to download the white paper here: http://www.syncapse.com/media/syncapse-value-of

    Any questions, let us know!

    Thanks,

    Meg@Syncapse

    twitter.com/syncapse
    facebook.com/syncapse

  • http://twitter.com/chrispycrunch Chris Lau

    BB now has 5M users. What is the fans page worth with the increased user count?