Facebook's News Feed change leaves investors nervous

Leigh Mccormick
January 16, 2018

New changes to Facebook's algorithm could see the social media platform lose a large chunk of change.

The first changes you'll see will be in News Feed, where you can expect to see more from your friends, family and groups.

Facebook has chose to change how your news feed works, making posts from businesses, brands and media less prominent.

While we would like more people to check out our content, we are comfortable with our place in the universe with or without Facebook.

In a follow-up to show that Zuckerberg's actions match his words, Facebook last week announced that it will make sweeping changes to how the "News Feed" is presented to its approximately 2 billion users worldwide. "We're making a major change to how we build Facebook".

Facebook executives held off-the-record meetings with publications like The Wall Street Journal at the end of previous year and spoke of renewing the focus on one-to-one communication among people who know one another over content distributed by publishers, according to a person who was familiar with these discussions but not authorised to speak publicly. "Because this [change] is naturally good for friend content and for conversation, it's actually going to be good for the diversity of opinion in News Feed".

"Publishers creating engaging content and meaningful relationships with their readers will have the greatest success", said Mistry, Senior Business Development Manager, InterMarkets.

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Posts from pages that generate conversations between people will be ranked higher in the news feed.

This is part of the social network's attempts to respond to criticism of its service's proliferation of viral spam and "fake news" over the past couple of years, as well as wider concerns about the effects social media are having on people's wellbeing. In fact, for some time now, the invasion of pages and posts sponsored on the bulletin board had made the users more passive compared to the use of social networks, as they only watched videos or read articles without sharing or intervening autonomously and originally.

"It's simple mathematics for a display business: Less time on Facebook and fewer ads can only mean that the ads that do show are more expensive", said Paul Mead, chairman of London-based media agency VCCP Media. "But I also expect the time you do spend on Facebook will be more valuable". "Small businesses can still focus on what makes them unique and deliver quality video content to their niche audiences". With this update, Facebook is prioritizing posts in the News Feed that get people talking to each other in the comments.

"Obviously, there will be the perception that this news is bad for advertisers and brands, but that would be a mistake", he told CMO. "And yes, video will still outperform other forms of content", said Jason Hsiao, Chief Video Officer & Co-Founder, Animoto.

Facebook's stated objective of its recalibration is to bring people together. Zuckerberg is basically saying that Facebook will shrink and will make less money off of its users, which is against the kind of reputation it has earned over the years.

What will change, however, is the way Facebook prioritises what to show you first. Mosseri explained that, because space in the news feed is limited, Facebook will prioritize posts from family and friends over public content which includes videos and other posts from publishers and businesses.

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