How we calculate Social Media Value
Paid Media Equivalence (PME)
Every valuation on ValuePerFan is calculated using Paid Media Equivalence (PME) — a methodology that measures the earned media value of organic social media content by answering one question: what would a brand pay in paid advertising to achieve the same results?
How Paid Media Equivalence (PME) works
1. Content Analysis
We analyze all content published by an account during the month — posts, reels, and videos. For each piece of content, we measure organic reach, impressions, and engagement (likes, comments, shares).
2. Market Rate Matching
Each content metric is matched against current advertising market rates for the same platform. What would it cost to buy the same number of impressions? The same reach? The same engagement? We use real CPM (cost per thousand) and CPE (cost per engagement) rates from the advertising market.
3. Value Calculation
The total Paid Media Equivalence (PME) value represents what a brand would need to spend on paid media campaigns to achieve the same results that this account delivers organically. This is how we calculate media value: a concrete, defensible number grounded in real market data — not an arbitrary score.
Value Per Fan
Value Per Fan divides the total Paid Media Equivalence (PME) value by every 1,000 followers (following the CPM convention). This normalization reveals who generates the most economic value per follower — regardless of audience size. A micro-influencer with highly engaged followers can rank above a celebrity with millions of passive followers.
Why Paid Media Equivalence (PME) is different
Most social media valuation tools use arbitrary scoring algorithms or simple follower-based multipliers. Paid Media Equivalence (PME) is different because it's grounded in real advertising market data — the same methodology used by professional sports teams, leagues, and entertainment companies to value their social media portfolios.
Trusted across professional sports and entertainment
The Paid Media Equivalence methodology behind ValuePerFan is developed by Horizm, the AI-powered platform trusted by professional sports teams, leagues, and entertainment companies worldwide to value their digital partnerships.
See who trusts this methodology →Limitations
- •Valuations are based on public data only. Private metrics (Stories views, DM interactions) are not included.
- •Instagram Stories are excluded due to their ephemeral nature — they cannot be reliably captured and measured.
- •Market rates fluctuate. Valuations represent a snapshot based on current advertising rates.
- •Paid Media Equivalence (PME) measures economic equivalence, not actual revenue. It represents what the content is worth in market terms, not what the creator earns.
See It in Action
Try our social media value calculator to see the Paid Media Equivalence (PME) valuation of any account.
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