When people use the hashtag of a company’s campaign, they are creating impacts for a brand that has an economic value on the market.
As discussed before, #ALSIcebucketChallenge collected over $41.8 million in 2 months cause of mass tweet-reach. This was made possible by people around who have added value to the hashtag, whilst the increasing economic value of a #hashtag.
“How much money that hashtag would be in the market?”
For that, we have to calculate them based on three things.
First step: Economic value of the user in the market
The authenticity and virality of an individual differ from one.
we can calculate by these factors:
- Number of following
- Ratio followers/following
- Number of lists the user is in
- If the account is verified or not
- Average impressions per tweet (given by Twitter)
- The economic value of a Twitter impact (pay-per-tweet of online platforms and CPMs by Twitter Ads)
Second step: Economic value of a tweet
Though the value of the user is accountable, the tweet has several streams of value in it.
Let’s take these values as an example:
- Reply: the value of the user (x 0.2)
- Tweet with media: the value of the user (x 1.2)
- Tweet with link: the value of the user (x 1.1)
- Retweet: the value of the user (x 0.5)
Final step: Total market value of the campaign
To get the overall worth of a hashtag is to add up all values obtained from the user and tweet. The outcome result is what we would have needed to pay our users to get that number of impacts according to the market prices.
The market economic value of a hashtag or campaign on Twitter is going to become one of the most influential metrics for marketers and agencies.
This is how our users are to be paid according to the market value to get the impact on a hashtag.
The three steps to calculating the value of the hashtag are:
- Calculate the economic influence of users (Followers, verified status, etc..)
- Calculate the economic value of each tweet (Retweets, Likes, replies, etc..)
- Sum all the economic values of each tweet (++)
Let’s see the economic market value of a tweet with an example. We will analyze the Twitter account @web3foundation, which has an economic value today of $154.94.
Note: The value is what that type of tweet sent by that specific user at that moment is worth, taking as reference pay-per-tweet platforms and the average cost of an impact on Twitter Ads and others.
This value will change if any variable changes: followers, following, lists, etc.
Twitter handle of web3foundation
- Text tweet: value of the user (x 1) = $154.94
- Reply: value of the user (x 0.2) = $30.98
- Tweet with media/link: value of the user (x 1.2) = $185.92
- Retweet: value of the user (x 0.5) = $77.47
Calculating the economic market value of a tweet is just part of calculating the economic market value of a hashtag.
The economic value is created by considering several criteria. It comprises two values: the value of the user and the value of their tweets.
Two are unique to each other and proportional.
First, we calculate the influence of each Twitter user who tweeted with your hashtag. This influence will give us an economic market value of the tweets of that user. It can be $2 or $2,000 per user. This is a generic value that shows how much a regular tweet of that user will cost. Once we have the economic market value of the user’s tweets, we see how many tweets he sent using the brand’s hashtag and we will give them an economic value.
This economic value of one tweet will vary depending on the type of tweet the user sent: text tweet, tweet with a link, with the image as mentioned earlier. Once we have the value of each type of tweet, sum them all and calculate the market value of a hashtag. To do that, sum all the tweets’ values. This way, we will know how much the hashtag is worth.