This post is also available in: Español (Spanish)
The economic market value of a hashtag
Every single hashtag on Twitter has an economic market value that can be calculated. This economic market value is generated by people using the hashtag, which generates impacts for our brand. It is known that many platforms that permit that users earn money by tweeting. And brands can also pay Twitter to advertise their hashtags with Twitter Ads. At Tweet Binder we have created a new formula that shows the economic market value of a hashtag or term used on Twitter. As there is no standard out there we have create our own algorithm to calculate how much is our hashtag worth. We have already spoken about the first variable; the economic market value of the user. So, in this case, we are talking about the economic market value of a tweet.
Step 2: How do we calculate the economic market value of a tweet?
The first thing we had to do was giving each type of tweet a value. Is a retweet worth the same as a original tweet which contains a picture? No it is not. That is why he had to decide how much each type of tweet is worth. So, having different platforms in consideration we calculated the average value that it is normally given. We have considered that each type of tweet has a different value and some factors must be applied. These factors are:
- Text tweet: value of the user times 1
- Reply: value of the user times 0.2
- Tweet with media: value of the user times 1.2
- Tweet with link: value of the user times 1.2
- Retweet: value of the user times 0.5
Let’s see that with an example!
Let’s see the economic market value of a tweet with an example. We will analyze the Twitter account @TweetBinder which has an economic value today of $16.02 (Step 1). If @TweetBinder sends a tweet with a picture (tweet with media), the value of the tweet will be $19.22. These factors are accumulative, so if the same user added a link to that tweet, the value will increase 1.2 times, so it will be $28.83. Remember, that value is what that type of tweet sent by that specific user in that moment is worth in the market, taking as reference pay-per-tweet platforms and the average cost of an impact on Twitter Ads and online and offline advertising. This value will change if any variable changes: followers, following, lists, etc.
The value of the tweets sent by @TweetBinder, whose user’s value is $16.02, will be:
– Text tweet: $16.02
– Reply: $3.20
– Tweet with media: $24.03
– One tweet and link: $19.22
– Tweet with media and link: $28.83
– Reply with link: $3.84
– One Reply with media: $4.81
– Reply with link and media: $5.77
– Retweet: $8.01
We consider that a retweet has a unique value even if it contains a link or media. If you want to see how much your tweets are worth you can see it in this external website.
What about Lady Gaga and Katy Perry?
Let’s see this with celebrities. Let’s imagine that we are thinking about hiring a famous influencer/singer to tweet about our new product, the question will be: Lady Gaga or Katy Perry? We have to see their follower number, but also, and most important, their economic value at this moment, those are:
– Lady Gaga (78,5 M. followers) = $64,704.07
– Katy Perry (109M followers) = $86,904.81
So apparently Katy Perry wins, she has a higher economic value in the market, this means that we would have to pay them those amounts of money for a regular tweet. However we will need to see what type of tweet they will send. If Katy Perry, who has a higher economic value, sends a reply and Lady Gaga a link with a picture the value of the tweet will be different:
Tweet Binder offers the economic value of the user and the economic value or each tweet he or she sends.
To calculate the economic market value of a tweet is just part of the process of calculating the economic market value of a hashtag. In this case, we have considered that original content is much more valuable than a retweet or a reply (a reply is just seen by those who follow both of the users having a conversation). If you want to see how much your tweets are worth and the economic market value of a hashtag we will release a tool that will give you this info. Feel free to contact us if you want to know more about this!