Facebook makes it harder for news to show up in news feeds

Facebook makes it harder for news to show up in news feeds

Facebook's ostensible goal in making these changes is to minimize the spread of fake news and misinformation by decreasing the reach of news stories on its platform.

The News Feed change represents one of Facebook's biggest risk factors, since it is the product where users spend the majority of their time on the service.

And that's it! A quick click will keep you connected on Facebook and up-to-date on the latest gear news.

Digital media publishers have been burned before by changes to Facebook's newsfeed algorithm. After all, with less ad content in the feeds, businesses must pay more for the right to compete against non-commercial (Friend) posts. He foresees a "Facebook Apocalypse" for business and publishers on Facebook.

The only aspect of the current change that has implications for brands is that they might see a slight impact within the ads auction, if they boost their posts, said Brittany Richter, VP and head of social media at iProspect.

"Facebook may scale or look into segmenting the feed experience to be about close communities, new ad experiences and inventory sources, such as within Live Videos, the Watch tab, Suggested Videos, or the content they're looking to prioritize", said Su.

Doing so seems like a strategic move at a time when Facebook has come under intense scrutiny for its power as a media hub. "If you comment, you are really engaging", Jones said.

Markets incorrectly assume ad revenue from businesses will fall but Facebook may demand higher fees and rates.

"Mark and his leadership team are taking the long view - they want and need Facebook to be a net positive audience experience to continue to build a sustainable business for the long run", said RPA's Dossett.

De-emphasizing news could also allow Facebook to withdraw from the controversies that saddled the company the past year - which included widespread criticism that the company did not do enough to mitigate hoaxes, propaganda and content planted by Russian operatives aimed at dividing the American public.

Jones said administrators of Facebook pages have been coming to Greenwich Point Marketing to set up custom audiences and website re-targeting campaigns.

"It's not a cause for alarm as we've been working with them to buy ads against longer-term KPIs instead of optimizing for short term metrics like reach for a while now", he said.

Given that Facebook shares were trading at around $127 in January 2017, the company's value is still up by more than 40 per cent year-on-year, even after this week's fall.

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.



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