The Free-Marketing Gravy Train Is Over on Facebook

The Power of Social Media
January 6, 2014

Over the past several months, Facebook has been reducing the organic reach of Pages. A recent study found that companies’ posts dropped from reaching 12% of their followers in October to just 6% by February.

Facebook and its popular Pages platform have been a cornerstone of most companies’ social-media marketing strategies for years. But if the brands, organizations and celebrities that use Pages want to continue to reach Facebook’s 1.23 billion monthly users in the future, they’re going to have to pay up.

The solution for brands with declining engagement, according to Facebook, is to buy ads. “Like many mediums, if businesses want to make sure that people see their content, the best strategy is, and always has been, paid advertising,” a spokeswoman said in an emailed statement.

The transition to paid marketing on what has long been a free-distribution platform may be a tough sell for some brands, particularly small organizations or individuals who have built up audiences over years. So far, though, pressing the screws to Pages hasn’t hurt Facebook’s bottom line — the company generated $7 billion in ad revenue in 2013, and research firm eMarketer projects that figure will grow to about $10.8 billion this year. That’s good news for the company’s investors, but maybe less so for the people suddenly being asked to fund the social network’s financial growth.

 

Read the entire article here.

 

– Times.com ~ Victor Luckerson @VLuck