Facebook’s New Algorithm Could Force Brands to Buy Ads

http://www.adweek.com/news/advertising-branding/facebook-brands-no-more-free-rides-161587

Facebook announced a move this month that will make it more difficult for brands to reach their fans through purely organic marketing efforts. Instead, if brands want to reach the widest possible audience on the social media site, they will need to invest in ads. In January, the site will curb the number of overly promotional posts users see from brand and celebrity pages. The company says it’s responding to users who are tired of seeing posts that push them to buy a product or app; enter promotions with no context; or view actual ads disguised as posts.

Facebook’s new algorithm could force brands to buy ads.

The change will be large enough that research firm Forrester is encouraging companies to decrease their reliance on Facebook. Instead, the site recommends they add social relationship tools to their own sites and use email marketing campaigns to reach customers.

“If you have to choose between adding a subscriber to your email list or gaining a new Facebook fan, go for email every time,” wrote Nate Elliot on the firm’s blog. He went on to note that an email will be seen by 90 percent of the people a company sends it to, and no one is looking over a brand’s shoulders to dictate what it can write.

Ultimately, the move could push marketers to buy ads. Facebook saw a huge increase in ad revenue in the past quarter: up 64 percent to $2.96 billion. It also boasts 25 times the number of advertisers as social rival Twitter. And today, Adweek learned the site will offer deep-pocketed brands exclusive information about users. Via adweek.com

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