Once Facebook ramped up its advertising program in order to monetize its platform and mollify its investors, unpaid posts by companies and brands were sure to be the collateral damage.
Sure enough, the recent monthly stats show that the “organic reach” of unpaid content published on company and brand pages on Facebook has been cut in half from where it was just a short time ago.
To illustrate, look at these stark figures gathered in an analysis by Ogilvy of 100+ country-level brand pages measuring the average reach of unpaid posts:
- October 2013: 12.2%
- November 2013: 11.6%
- December 2013: 8.8%
- January 2014: 7.7%
- February 2014: 6.2%
What these stats show is that within the span of less than six months, the average reach of unpaid brand posts dropped by nearly 50%.
To go even further, an anonymous source familiar with Facebook’s long-term strategy is claiming that its new algorithm could ultimately reduce the reach of organic posts to 2% or less.
Actually, the reason for the squeeze is more than just Facebook’s desire to increase advertising revenue.
Here’s a dynamic that’s also significant: A Pew Research study conducted in mid-2013 found that the typical adult American Facebook user has around 340 friends.
That average is up nearly 50% from approximately 230 friends in 2010.
Of course, more friends mean more status updates eligible for feeds … and Facebook’s not going to display them all to everyone — even if it wanted to.
Also, Facebook users “like” an average of 40 company, brand, group or celebrity pages each, according to a 2013 analysis done by Socialbakers, a social media analytics firm. That translates into an average of ~1,440 updates every month.
Compare those figures to five years ago, when the average number of page “likes” was fewer than five … yielding fewer than 25 monthly updates on average.
Clearly, there’s no way Facebook is going to to be able to display all of these updates to followers. So … the content is squeezed some more.
The final nail in the coffin is the rise in “promoted” posts – the ones that brands pay dollars to promote. It’s only natural that Facebook is going to give those posts priority treatment.
Thus, the hat-trick combination of more friends, more likes and more promoted posts is what’s causing “organic” brand posts to go the way of the dodo bird.
In retrospect, it was only a matter of time before a major social platform like Facebook would seek to monetize its program in a big way.
In some respects, it’s amazing that the free ride lasted as long as it actually did …
Filed under: Advertising, Branding, Business, Marketing Communications, Social Commentary, Uncategorized | Tagged: Advertising, Advertising Reach, Branding, Facebook, Marcomm, marketing, marketing communications, Nones, Online Advertising, Pew Research, Promoted Posts, Social Media, Social Platforms, Social@ogilvy, Socialbakers | Leave a comment »