Source:
www.dangerousminds.net | Original Post Date: October 24, 2012 –
THE BIGGEST ‘BAIT N’ SWITCH’ IN HISTORY?
This has been brewing since around May. At least that’s when we first
started noticing it here at Dangerous Minds and we certainly weren’t
the only ones.
Spring of 2012 was when bloggers, non-profits, indie bands, George Takei,
community theaters, photographers, caterers, artists, mega-churches,
high schools, tee-shirt vendors, campus coffee shops, art galleries,
museums, charities, food trucks, and a near infinite variety of
organizations; individuals from all walks of life; and businesses, both
large and small, began to detect—for it was almost imperceptible at
first—
that the volume was getting turned down on their Facebook reach. Each post was now being seen only by a fraction of their total “fans” who would previously have seen them.
But it wasn’t just the so-called “fan pages,” individual Facebook
users were also starting to notice that they weren’t seeing much in
their newsfeeds anymore from the various entities they “liked”—or even
updates from their closest friends and family members. Something was
amiss, but unless you had a larger “data set” to look at—or a formerly
thriving online business that was now getting
creamed—it probably wasn’t something that you noticed or paid that much attention to.
When we first noticed the problem, our blog had about 29,000 Facebook
“likes.” Our traffic was growing 20% month over month, but our Facebook
fans grew at a far faster pace. We were getting hundreds of new ‘likes”
every day. Still do. As I write this, our Facebook fans now number over
53,000, not quite double what it was then, but give it another month or
so and it will be.
53,000 is a more than respectable number of Facebook fans for a blog
that’s only been around for a little over three years. So why is it that
our pageviews—our actual inventory, what we sell to advertisers—coming
from Facebook shares are off by
half to two thirds when the number of new “likes” has risen so dramatically during this same time period?!?!
In a widely read—and widely shared on Facebook—NY Observer article titled “Broken on Purpose: Why Getting It Wrong Pays More Than Getting It Right,” (emailed to me by a friend, a prominent blogger, with the subject line: “
Why putting a lot of energy into building a Facebook presence is a sucker’s game”)
PR strategist and social media expert 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 meantraking in nearly $1M a day.”
I love how Rajaram phrases that so delicately: “Sponsoring posts is important.”
It’s perhaps the most understated stick-up line in history,
worthy
of a James Bond villain calmly demanding that a $365 million dollar
ransom gets collected from all the Mom & Pop businesses who use
Facebook. How many focus groups do you reckon it took until
Facebook’s highly paid marketing and PR consultants finally arrived at
such an innocuous phrase for describing information superhighway
robbery?
DO THE MATH (!)
At Dangerous Minds, we post anywhere from 10 to 16 items per day,
fewer on the weekends. To reach 100% of of our 50k+ Facebook fans they’d
charge us $200 per post. That would cost us between $2000 and $3200 per
day—but let’s go with the lower, easier to multiply number. We post
seven days a week, that would be about $14,000 per week, $56,000 per
month…
a grand total of $672,000 for what we got
for free
before Facebook started turning the traffic spigot down in Spring of
this year—wouldn’t you know it—right around the time of their badly
managed IPO.
Whenever the controversy raging over Facebook’s exorbitant Promote
fees gets covered in the media, I’ve noticed that the comments have been
very telling. Opinion seems to be about nine to one against it. Some in
the “it’s a free country” section of the peanut gallery maintain that
the new Promote “option” isn’t extortion, just
capitalism, baby, and furthermore that disgruntled Facebook users have the simple option to seek out other venues that are free such as
Twitter and
Google+
That’s true. They are right of course, in a strict free market logic, but this would be an unsophisticated viewpoint to hold if you are the CEO of a multi-billion dollar concern like Facebook. It surely doesn’t take a Harvard degree, does it, to figure out that Facebook so aggressively angering their user base by inserting themselves into the equation in this way, is perhaps—if only because of the size of the company’s market cap—the single most misguided thing a major corporation has ever deliberatelydone, bar none, in the entire history of American capitalism and the world.
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