Blog and Ideas
February 25, 2014
By Jorge Chávez

What is the Value of Active Users on Social Networks?

Really, I just paid Facebook for buying 450 million users?

What is the Value of Active Users on Social Networks?

Although there has been much talk about the $19 billion Facebook has paid for WhatsApp ($12 billion in equities, 4 billion in cash and $3 billion in restricted stock), if we consider the value that each user has with respect to engagement and activity, it’s really worth much more than Mark Zuckerberg ended up paying.

When an Internet user is logged into a social network that contributes to the level of site traffic. In this way, the user represents a certain value, calculated to be about $100 USD each, on average.

According to a study by Statista, that value of each WhatsApp user is averaged at $42 USD and considering that this application has 450 million active users, the $19 billion price tag doesn’t seem to be an outrageous price. In other word, Facebook paid only $100 million above the average value of WhatsApp users.

Various statistics indicate that the average WhatsApp user sends 1,267 messages per month and receives 2,267 so there are no doubts about the engagement levels.

Another example is the server crash that occurred last weekend, which despite having spent only two days under its acquisition by Facebook, became a trending topic on Twitter.

Although a record was set more than 4 million new users in one day in other application like Telegram, the demand for WhatsApp is so high that it’s not a real concern.

Currently Facebook is the social network which has the highest value users, reaching a price of $141.32 USD, followed by LinkedIn ($84.95 USD) and Twitter ($83.53 USD). However, these numbers are constantly changing so do not be surprised if WhatsApp catapults itself into the number one ranking with smart marketing strategies.

Which of these social networks do you use most frequently? Let your comments below!

Jorge Chavez is Senior Editor at Mijo! Brands, Mexico.

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