How much is my Twitter worth? – Few steps to calculate it

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How much is my Twitter worth?

Every single hashtag or account on Twitter has an economic market value that can be calculated. That’s a fact: everything on Twitter has a translation in money. When you tweet about a brand, do you get paid for it? We guess not but if you’d get paid, how much should you charge?

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Or, if you launch a hashtag on Twitter and it gets a lot of traction, how much money would it be worth in the advertising market? We have developed a formula that calculates that along with other Twitter analytics.

This economic market value is generated by people using the hashtag, which generates impacts for our brand. It is known that many platforms allow users to 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 account (or term) used on Twitter. As there is no standard out there we have developed our own algorithm to calculate how much is our hashtag worth. In this case, we are talking about the economic market value of a tweet.

But know one thing for sure: everything on Twitter has an economic translation, your tweets have value and the hashtags you participate in have value. In this post we will learn about this, but if you want to start calculating that number in our free platform click the next button:

Calculate the value of a hashtag or account

There are two values we will be talking about in this post:

• Market value: what the market would pay you.
• Engagement value: what the market would pay you taking the engagement of your account in consideration.

It displays the value of an account on the market (according to Twitter ads or pay per tweet platforms). This value takes into account quantitative market variables (prices, followers, lists in which the user is included…). That market value is a great metric to know how the hashtag worked. From now on, Tweet Binder offers a new useful economic value too: the engagement economic value.

Tweet Binder launches this new economic value that takes into consideration a very important metric: the level of Twitter engagement of the users. The engagement of a tweet will depend on the number of retweets and Twitter likes it gets. A Twitter user with many retweets and likes will have more engagement than another user without retweets or likes. This is similar to the “economic market value” but considering the activity of the tweet. You can find yourself the number of retweets.

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 Twitter 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 developed 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. This way, 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. Where as if you get a lot of new followers, it will increase. Therefore, this could act as a Twitter follower tracker.

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 add all tweets to 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.

Economic market value of a hashtag

What is the economic impact of a Twitter campaign? What is the market economic value of a hashtag? Companies and marketers have been asking themselves these questions for years. Tweet Binder has developed a unique algorithm that calculates how much a hashtag is worth in the market, the market value of the campaign. This new metric is added to our Twitter analytics suite.

At Tweet Binder we think that the market value of the campaign is an important metric. Using the market values (prices and rates) we can estimate how much a hashtag would be worth on “paid media”. When people use the hashtag of a company’s campaign, they are creating impacts for a brand and that has an economic value on the market. It can be translated like “how much the company would have had to pay on the market to get those Twitter impacts and tweetreach”. By the market we mean Twitter advertising, pay-per-tweet platforms and online and offline advertising.

At Tweet Binder we have created a new formula that shows the market economic value of a hashtag or term used on Twitter in the market: “how much money that hashtag would be in the market”. We have created a new standard taking several variables in consideration. The way we do it is very simple, we use a three-step procedure:

First step: Economic value of the user in the market

We need to calculate the economic value of a tweet of the user. This can be similar to an influence score such as Klout or Kred but we do it from an economic point of view. 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 value of a Twitter impact (based on prices and rates from pay-per-tweet online platforms and CPMs by Twitter Ads)

This formula calculates the value of one tweet of each user in American dollars (USD). This value is a generic figure and the variables taken in consideration have a different weight on it. They have a different weight on our algorithm and they can change as one platform can changes its prices. This market economic value per user’s tweet is a generic score and will give us the value of a regular tweet (text tweets, in this case). We have several factors to rank each tweet that we will explain in the following section of this post.

Second step: Economic value of a tweet

In the previous section we explained how we calculate the economic value of each user. Now, we will see how much the tweets of that user are worth (how much we would have had to pay to that user). In order to do that, 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 1.1
• Retweet: value of the user times 0.5

Step three: Total market value of the campaign

Once we have calculated the value of each user and the value of all the tweets he sent, we need to see how much this hashtag is worth. The total market value of the campaign. To do that, we add all the tweets’ value. This way we will know how much the hashtag is worth.

The Market economic value of a hashtag is the sum of the value of each tweet. This amount of money is what we would have needed to pay to our users to get that number of impacts according to the market prices. As we said before, the value of each tweet and user is based on pay-per-tweet online platforms and the average CPM of Twitter ads. The market economic value of a hashtag or campaign on Twitter is going to become one of the most important metrics for marketers and agencies. This will show how much we would have had to paid (according to market values) to our users in order to get the impact our hashtag had. This formula and algorithm is going to offer the market value of the campaign.

The three steps to calculate the value of the hashtag are:

• Calculate the economic influence of each user
• Calculate the economic value of each tweet
• Sum all the economic values of each tweet

Tweet Binder offers this metric for free in all the reports, so all kind of users will be able to see the economic value of their hashtags. PRO users will have a deeper economic analysis with more metrics and rankings into their reports.

How do we calculate the economic market value of a tweet?

The first thing we had to do is to give 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 we 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 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: $19.22
• One tweet and link: $17.62
• Tweet with media and link: $21.15
• Reply with link: $3.52
• One Reply with media: $3.84
• Reply with link and media: $4.22
• Retweet: $8.01

We consider that a retweet has a unique value even if it contains a link or media.

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 a Twitter user and the economic value or each tweet he or she sends. Calculating 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).

It is true that most of the hashtag counters are very similar to each other. Each one of them has its features and outstanding aspects. In this case, Tweet Binder is in constant change. We want to cover all your needs. We have to reinvent the platform everyday to offer the best analysis for you! Tweet Binder offers all the main stats, user rankings, device information, timeline activity. However, since this summer, Tweet Binder includes completely new data which can not be found on any other platform. The economic market value of the hashtag has come to revolutionize the world of measuring tools.

What is the economic value of a hashtag?

We have analyzed the economic value of a tweet before, ok, now it’s time of doing the same but for a hashtag. This economic market value of a hashtag comes from many debates and conversations and effort. We knew we wanted to get it so we spent a lot of time discussing how to get it. The result of all the meetings and talks has been a very valuable fact. As a result, we could draw many conclusions. The economic value of a hashtag can help us to focus much better on our marketing decisions.

Calculate the value of a hashtag or account

Let’s explain it carefully. The economic value is created by taking into account several criteria. It consists of two values: the value of the user and the value of their tweets. With our own algorithm we can determine the economic (market) value of any hashtag. This is achieved by calculating the value of each user who has participated and the value of the tweets each of those users have sent. The result is obtained thanks to these two variables.

Data considered to calculate the economic value o a hashtag

Calculating this economic value of the hashtag seemed straightforward. However, we had to take into account data extracted from many sources. We dedicated time to find the value that is given in the market to the tweets of each user. We decoded the valuation that was given to each type of tweet. Moreover, how this relates to the properties of each account. As a result, we saw that it was not the same a person with 100 followers than one who had 1.000 followers. We also counted Twitter Ads and how much they charge for advertising on their platform.

Through these sources we were able to invent our own formula to calculate the economic value of the hashtag, an account and a tweet. We include all these stats in our reports and they can provide us with more information than we can think of.

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. 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.

Economic engagement value

To determine if a user has high or low engagement we need to know first the engagement that is expected from him. If a Twitter user with only 10 followers gets 100 retweets, it would be great. So the first thing we need to know is that we should expect different number of retweets and likes depending on the number of followers of the user. We analyzed millions of Twitter users to see how many retweets and likes they were getting and how many followers they had. After that, we got two interesting general metrics on Twitter: the number of expected retweets per follower and tweet and also the number of expected likes per follower and tweet.

Once we have those figures we put everything in the algorithm and it shows the engagement value of the user. That’s how Tweet Binder calculates the engagement value. We see how many retweets and likes (engagement) one user should have. Then, we check how many he actually gets. If the number is lower than expected, the market value will decrease. And if it is higher, the market value will increase.

Calculate your engagement value

Example with @katyperry vs @justinbieber

We are going to monitor two top Twitter accounts to see the difference between the market value (which only has in consideration quantitative variables) and the engagement value (which has in consideration the engagement). These two accounts are @katyperry and @justinbieber. Firstly, we will analyze the “market value”. @katyperry: $145,735.95 and @justinbieber: $147.963,96

So we can see that in the market, one tweet from Katy Perry is worth more than one from Justin Bieber’s. Let’s see now the “Engagement Value”. We will need to know how many retweets and likes are expected of them and how many they got. Then, we will have it, and the results are: @katyperry: $120,068.58 and @justinbieber: $2,076,909.64. Crazy, right?

The result is very different now: one tweet from Justin Bieber is worth much more. And the tweet value from Katy Perry is even lower than its market value. Why is that? The answer is simple: the expected engagement from Katy Perry is not as high as it should be, plus Justin Bieber’s tweets have a lot more engagement than expected.

The engagement economic value from a Twitter user is a revolutionary metric that takes many variables into consideration. The final value will be the real price one company should pay that user to send a tweet using its campaign’s hashtag. It is perfectly normal to have the engagement value lower than the market value. If that’s your case, you should work on your content because you are not getting as much engagement as expected. Contact us if you have any doubt!

Twitter also offers the option to advertise a brand or campaign if we pay for it. In order to give a market value to our hashtag. Partly based on that, in Tweet Binder we have developed a some new Twitter metrics. Read on and find out more about one of the most interesting: the market value of a hashtag.

How is the economic value of a hashtag calculated?

The truth is that there is no universal algorithm. That’s why we’ve created one of our own to calculate this Twitter metric. Sounds great, doesn’t it? Our team took time behind this data and have worked hard to create this algorithm. Thanks to it we can know how many dollars it would have been necessary to spend to get the impact that the campaign has naturally achieved. This way we distinguish the tweets shared and we give an economic value to each one of them.

The economic value of the tweets will vary according to the type of tweet that the user sends: tweet, tweet with link, retweet, etc. Once we have the value of each type of tweet, we add them all and calculate the total economic value of the hashtag.

In the blog you can find more post that are related to the economic value of a hashtag. In them we explain in depth how we calculate each of the figures that we enter in the algorithm. So you can perfectly understand how it works. We explain how to calculate the economic value of the market of the users and the economic value of the market of the tweets.

What can I get from this new Twitter metric?

As we have already said the economic value of a hashtag is translated into the value given to it, in the market, to the content. This is not an exact value but really accurate. Taking this into consideration, what data does this economic value offer us? Through the new rankings we can capture, in a single glance, those people whose tweets have a higher value. These ambassadors are people who represent a brand to make it known, create sales opportunities, create a specific image or increase consumer preference towards it.

Our rankings will make this work easier, showing us who have published quality content mentioning our brand. This will be of great help to us if, for example, we seek ambassadors for our brand. Therefore, contact with these users can be a great opportunity to generate or improve our image as a brand and to increase sales. In fact, you can also check out our complete Twitter services to succeed!

Try Tweet Binder now!

If you have any comment or you want to get to know better any detail about the economic value of a Twitter hashtag, do not hesitate to contact us!