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How to calculate the economic market value of a hashtag
Every campaign on Twitter has an economic value. When people use the hashtag of your campaign they are creating impacts for your brand and that has an economic value. Nowadays, there are many platforms online that pay users to tweet about a brand or a campaign. Also you can pay Twitter to advertise your hashtag: 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. Basically, what we are doing is to let you know how much you would have needed to pay to get the impact you got. There is no standard out there we can use so we have created one of our own taking several variables in consideration. The first one, it is the economic market value of the users.
Let’s do this!
The way we do it is very simple. Firstly, 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 our campaign’s hashtag and we will give them an economic value. This economic value of one concrete tweet will vary depending on the type of tweet the user sent: text tweet, tweet with link, with image, etc. Once we have the value of each type of tweet, we sum them all and calculate the market value of a hashtag. To do that, we sum all the tweets value. This way we will know how much the hashtag is worth.
We follow these steps
In order to calculate the economic market value of a hashtag, we follow these steps:
1- Calculate the influence of each Twitter user who tweeted with your hashtag (keep reading this post)
2- Check out how many tweets each user sent using our campaign and give the tweets their values according to the types of tweets
3- Sum all tweets and calculate the total economic market value of the hashtag (discover the final step by reading this post)
Economic market value of the users
As we said before, we need to calculate the economic market value of the users. This can be similar to an influence score such as Klout or Kred. Tweet Binder calculates this score taking in consideration the following variables:
– Number of followers
– 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, specialized blogs and experts)
– Economic market value of an impact on Twitter (based on pay-per-tweet online platforms and CPMs by Twitter Ads)
We have created a formula that calculates the market value of each user in American dollars (USD). This value is a generic figure that will give us a measure of the influence of a user. We have our own algorithm and all the variables have a different weight on it. We consider that having a lot of followers is important; however, to be in many lists or to have a high followers/following ratio is also important. This value is dynamic; it changes if the variables change so you can see your account ranked differently in different reports. For example, if you start following a new number of accounts your economic value will decrease. If you get a lot of new followers that will increase.
We have calculated the economic market value of the users, now what?
This value is a generic score and will give us the value of a regular tweet (text tweets, in this case). Once we have calculated the economic market value of the users, it is time to discover the market value of their tweets according to the types of tweets they have sent. Finally we will sum all tweets and calculate the economic market value of a hashtag. Please, visit our blog for more information. Let us know if you need a deeper explanation. We will be more than happy to help you.