Dangerous Minds on Facebook's "bait and switch" for publishers: "I want my friends back" http://dangerousminds.net/comments/facebook_i_want_my_friends_back
Ryan Holiday succinctly laid out the case against the damage Facebook had inflicted upon its most active users with its recently rolled out Promote “option”:
It’s no conspiracy. Facebook acknowledged it as recently as last week: messages now reach, on average, just 15 percent of an account’s fans. In a wonderful coincidence, Facebook has rolled out a solution for this problem: Pay them for better access.
As their advertising head, Gokul Rajaram, explained, if you want to speak to the other 80 to 85 percent of people who signed up to hear from you, “sponsoring posts is important.”
In other words, through “Sponsored Stories,” brands, agencies and artists are now charged to reach their own fans—the whole reason for having a page—because those pages have suddenly stopped working.
This is a clear conflict of interest. The worse the platform performs, the more advertisers need to use Sponsored Stories. In a way, it means that Facebook is broken, on purpose, in order to extract more money from users. In the case of Sponsored Stories, it has meant raking in nearly $1M a day.
These comments, from that same NY Observer article, spell out what this all really means and lays bare why Facebook’s ham-fisted money grab is so staggeringly inept:
I run a Facebook page with 15,000 fans. That’s 15,000 people who have consciously signed up for our website updates and want it to appear in their newsfeed. Yet, we’re having exactly the same problem this article chronicles. We’re barely reaching 15-20% of our fan page and we’re sharing stuff that always used to be popular. Facebook for us was always a vehicle to drive traffic to our website (just like our email list, twitter page, etc). It’s become less and less valuable as a tool to do this due to Edgerank and Facebook wanting to charge you to reach the audience you’ve ALREADY paid to reach. It’s a betrayal. It’s just not worth it to pay $100 to reach all of our fans for one article. As a small business, I’m starting to care less and less about Facebook and I’m not alone. They need to get rid of Edgerank and get rid of Sponsored Posts.A fellow named Bill Downey replied to that comment. Imagine your name is Mark Zuckerberg as you read the following:
I have a similar experience, my page has over 40,000 fans and when Facebook started this the traffic to my website dropped from 30,000 a day to 5,000 a day. I tried paying for extra reach but it’s not worth it for a small site like mine. The fee they charge I can not make up thru ad revenue. It’s probably fine for McDonalds page or Coke who can afford $200 per post for the full reach. I would be all for paying if the cost to play wasn’t so steep, they need to come up with better scaling for the fees for smaller pages. They don’t care about the little guys when they can sock it to the big companies. The worst part of it though is the lying to our fans that sign up to see our content and then never do unless they fall in that 15% group. Facebook has a number of other issues that make most of its users hate it. I know I despise it and I am desperately trying to find a way to replace it for promotion.“I despise it.” Hear that beleaguered holders of Facebook stock? That kind of talk would make my blood run cold. How many companies can you name that you actively despise?
For online publishers who depend on “page views” to sell advertising against—and who have invested considerable time and effort courting Facebook fans—the company’s new policies are particularly galling: Imagine losing 85% of your inventory and then being asked to pay a daily king’s ransom—more than it’s even worth to you—to get it back!