A lot of opinions have been flying around since Facebook latest bombshell announcement that they would be re prioritising meaningful conversations between friends and family over brand content. There is a lot of confusion, mainly due to speculation within the industry as to what brands will do next and what impact it will have on both organic reach and also the knock on effect on paid traffic.
Here was our response to a confused client of ours. We thought people may wish to know our thoughts.
Today a client asked us:
What are your thoughts on Facebook’s decision to remove business advertising from peoples newsfeeds.
How is that going to impact on the model we have been discussing with yourselves?
Here was our response
We of course don’t know what impact this will have on cost of impressions, however, it is widely interpreted that this was actioned to combat Zuckerberg’s ‘broken Facebook community’.
There has been much said about the post election fake news and mental health impacts of social media in the younger audience, however these changes were introduced to prevent the amount of meaningless social sharing pushed out from brands and media outlets to get viral content spreading and build huge organic audiences that gift them millions in traffic and on site ad sales. Think ‘Tag a mate who’ style posts.
In my humble opinion, this move has provided FB with a way to tackle its community problems whilst pushing organic brands towards paid traffic.
For 95% of these brands, a paid traffic replacement wont stack up because they reply heavily on social sharing (which is being throttled for brands) and because the cost of reaching the volume they require wont return the margins it did before.
Ad Costs may rise, mainly because there will be less inventory available, however the feed clutter will be decreasing and our CTR may increase, which means lower CPCs.
It’s a waiting game, however the changes in my opinion actually favour ad buyers.
If you are a UK brand, confused and unsure what options you have with paid advertising, please get in touch. We are happy to talk it through with you.