Uh-oh for Brands Using Facebook to Advertise

[azgold]

I still don't have a fb account but I got this article in my inbox today from WebProNews. Apparently, fb is pulling a Googlesque maneouver on those who use their site for brand building. According to the article, some companies have seen a sudden drop of engaged users, up to 80%!

Anyway, here is a link to the article, if you're interested.

'Chilling' News for Brands on Facebook


Few of the post's comments (partials):

"I post a selection of content from my page and it would always get a decent reach. Links to quality articles (some of which have had over 2 million shares for individual articles) did use to get at least 70,000 impressions. Since the update, I am lucky to see 4000 impressions. From 3 million fans… WTF Facebook?"​

"There is nearly zero benefit to having a brand page on Facebook, unless you’re willing to continually pay Facebook, for visibility.....It isn’t worth building an audience, when only 2.5% of my audience will see what I post, if I refuse to pay Facebook for advertising....Want a better social network? Try App.net – way better than Facebook."​

"Not only are the posts on our Pages being throttled – the last post I “reached” 5 people out of 800. I am beginning to suspect that posts, with links, are also being throttled on our Personal Pages." ​

 

[EymardSiojo]

Actually, it is not knew. When they release their IPO, it started that when you PM a person that is not your friend. You should pay them to get it delivered in the inbox, if not, it will be delivered to others box which is in other terms spam box.

The limitation is because they are now a business that needs to generate million of dollars for their investors and share holders.

 

[azgold]

I did read that fb went public, so I guess that's why. Too bad, eh? Like I said, I don't have an account, but it sounds like the whole experience will be different from now on. Obviously, the affects have been felt immediately. An 80% drop in readership, that's gotta hurt.

Do you think this tactic will work for fb? Will the big companies pay up, or find a new venue? I'm betting they do both. They're probably a little nervous about what may happen next, so will start building a safety net elsewhere. Meantime, they need a way to communicate with their followers.

Isn't this kind of like extortion or kidnapping? When account holders pay the ransom, they get their fans back. Only this is legal.

 

[K]

TBH in the long run this will damage Fb - I think tho they are just trying to put importance on decent content and not just like and share this picture type things.

 

[azgold]

TBH in the long run this will damage Fb - I think tho they are just trying to put importance on decent content and not just like and share this picture type things.

Yeah, it said something about that in the article. The author compared what's going on with fb to Google's Panda update. I'm sure that Panda/Penguin/Hummingbird have played a big role in fb's changes. Aside from being accountable to their shareholders, they have to please the Google gods to stay on top.

All that being said, I've always been under the impression that facebook is primarily a social site. What I've been reading makes it sound like more of a content site. Different context.

 

[dustinp]

They are trying to improve the content that goes through the newsfeed, and they are basically telling businesses that hey if you want advertising you are going to pay us for it. I agree though this is supposed to be a social site, it will be interesting what direction FB will go. I believe what K says and thinks this could hurt them in the long run. As a marketer you will adapt and find other opportunities.,of course you don't even have a FB account so it probably doesn't affect you!

 

[azgold]

You're right Dustin, doesn't affect me. I was thinking that I need to start a fan page because I've read that there are big advantages for your business by doing so. However, in light of this news, I don't know if that's true anymore.