Beyond CPM and CPC: determining the value of users on OSNs

Not all of the over one billion users of online social networks (OSNs) are equally valuable to the OSNs. The current business model of monetizing advertisements targeted to users does not appear to be based on any visible grouping of the users. The primary metrics remain CPM (cost per mille---i.e., thousand impressions) and CPC (cost per click) of ads that are shown to users. However, there is significant diversity in the actions of users---some users upload interesting content triggering additional views and comments leading to further cascades of action. Beyond direct impressions, a user's action can generate indirect impressions by actions induced on friends and other users. Identifying the valuable user segments requires examination of profile data, friendships, and most importantly, their activity. Here we explore an alternate approach for measuring the value of users in OSNs by proposing a framework from the viewpoint of a popular OSN. Using a real dataset on the social network and activities of users, we show that a small subset of actions are likely to be key indicators of a user's value. Additionally, by examining the current targeting demographics available in Facebook, we are able to explore the relative (monetary) value that different users represent to the OSN.