If
you use Facebook you must have noticed that you’re not seeing as much updates
from brands you ‘liked’ or even from some of your closest friends and family
members. How is that possible?
Since
last August, when Facebook began testing a newer ‘News Feed’, status updates now reach on average just 15% of a page’s fans. The reason is simple; Facebook
wants more of your money as FB 'Master-Mind Advertising Director', Gokul Rajaram,
explains; “if you want to speak to the other 80 to 85% of people who signed up
to hear from you, “sponsoring posts is important.”
Sponsoring
posts is important? Let’s do some math and discover why it is so important. I’ll
take Oman Collective Intelligence’s FB page (even though is not the best
example as, unlike most businesses, it is not my primary channel) and I’ll assume that I update my status
daily, just as most businesses do.
Look at this screenshot below and you'll see that one of my previous updates reached 305 people, just over 20% of my fans, while in theory it should have reached them all.
As you see from the next screenshot in order to reach all my fans I'll need promote my post and pay $5 per day.
If you multiply $5 into 30 days my monthly ‘investment’ for a ‘sponsored story’ would be $150, while for the whole year would be $1,825. Now, you can imagine how much that amount would increase if I had tens of thousands of fans and/or if I wanted to post more than once daily. I would need hundreds of thousands of $$$$$.
As you see from the next screenshot in order to reach all my fans I'll need promote my post and pay $5 per day.
If you multiply $5 into 30 days my monthly ‘investment’ for a ‘sponsored story’ would be $150, while for the whole year would be $1,825. Now, you can imagine how much that amount would increase if I had tens of thousands of fans and/or if I wanted to post more than once daily. I would need hundreds of thousands of $$$$$.
So
why do we need to pay for something we used to get for free? Most importantly,
why can’t we access our friends any longer? The answer is simple, 86% of Facebook’s current revenue
comes from advertising with its primary ‘social’ ad product now generating $1
million in revenue per day, about half of which comes from mobile. Facebook is greedy and wants more of it.
Personally I'll never pay for promoting a story and I'll look into more creative options to suggest to some of the brands I assist on social media. There is another aspect though which concerns me, and should concern Facebook too, and that is product quality, i.e. improving Facebook.
The beauty of social media is that is done by people, managed by people, written
by people, and all those people exchange information, enjoy conversations and interact. Having lots of ads, therefore a strong corporate presence on people News Feeds, won't make FB as genuine as it is supposed to be and will put lots of people off.
Call
it capitalism, call it extortion, call it betrayal, call it monopoly...or simply
call it Facebook. Take it or leave it.
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