Facebook Releases Bad News For Businesses

Herbert Rhodes
January 14, 2018

Tweaking users' feeds may cause the social media platform to lose some of its luster for content producers or media companies, especially video makers that can not make money on Facebook regardless of how many of their videos go viral, said Cho Sodam, founder of Dotface, a youth-oriented media startup based in Seoul, South Korea. I'm changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions.

Facebook CEO Mark Zuckerberg wants the time users spend on the social network to be more meaningful, so an overhaul is in store. Click the images below in the gallery to get a better understanding.

These include an anonymous sperm donor seeing his daughter as a possible "friend" on Facebook, and patients in the same psychiatric office seeing others suggested as "people they may know". But Facebook continues to insist that despite the fact it has numerous characteristics of a media company, it doesn't need to act like one.

"No matter how well we do on Facebook and how great our videos are, making high-quality videos itself does not bring us any profit", said Cho.

That new position is going to be a nightmare for a lot of digital media companies that have grown to rely on Facebook's News Feed to drive readers to their sites.

Facebook will soon give more weight to posts from friends, family members, and those that spur conversation. Companies, advertisements, and videos clogged up users' News Feeds. Since then, annual sales have soared from US$5.1 billion to an estimated US$40.2 billion a year ago - and the news feed has become increasingly crowded with advertisements and posts from brands and publications.

Reuters/Stephen Lam/File PhotoFacebook CEO Mark Zuckerberg is seen on stage during a town hall at Facebook's headquarters in Menlo Park, California September 27, 2015.

More news: Unseasonal weather dents Christmas sales at Marks & Spencer

Facebook recently announced it will be changing its feed and algorithms so that news from publishers and posts from businesses will be relegated in favor of posts about your neighbor's cat.

By close of business on Friday Facebook shares were trading at $179.37, down more than 4.4 per cent on Thursday's price of $187.77.

According to some analysts, the measure won't drag Facebook down due to its strong monetization, formed by a monthly active user (MAU) base of more than 2 billion. For those who have been passively watching 90-second videos with the sound off, this is the cue for them to start looking for them on other platforms.

What does this mean for Pages and public content? And news can help start conversations on important issues. As the years passed, the social network has moved away from that.

Zuckerberg also said the News Feed change was meant to "make sure that our products are not just fun, but are good for people".

"We believe these changes will be beneficial to Facebook in the medium and long term". Last year, NY magazine reported on a study that found that "people who see an article from a trusted sharer, but one written by an unknown media source, have much more trust in the information than people who see the same article from a reputable media source shared by a person they do not trust". Facebook has also indicated that postings which generate the most engagement or reactions will always get first look in their algorithms.

Other reports by TheSundaySentinel

Discuss This Article

FOLLOW OUR NEWSPAPER