With its news feed now geared toward fostering "meaningful interactions" between people, Facebook said on Thursday that businesses can expect to see their video views and referral traffic decrease.
Quality media organisations must establish "a viable subscription model on platforms that enables publishers to build a direct relationship with readers and to manage the terms of access to their content", John Ridding, chief executive of the Financial Times, owned by Nikkei, said in a statement on the changes. Shares tumbled more than 4 percent during trading on Friday. If Mark Zuckerberg is truly anxious about his legacy and that of Facebook, casting legitimate news publishers and businesses into the abyss will only further tarnish an image that is already deeply damaged.
"Facebook has a lot of work to do - whether it's protecting our community from abuse and hate, defending against interference by nation states, or making sure that time spent on Facebook is time well spent", he wrote.
Facebook founder and CEO Mark Zuckerberg says the social network will become more about "personal moments" and "connection". Pages whose posts prompt conversations between friends will see less of an effect. "On January 11, the social media giant announced that it would change the algorithm of its news feed so that it would "prioritize what [users"] friends and family share and comment on", according to The New York Times.
While this may be another blow to publishers and brands, many already took the first big hit past year.
The prospect didn't appear to weigh too heavily on Global News, an early and frequent adopter of Facebook as a distribution channel. However, during that time, Facebook's unique audience has continued to grow.
Facebook Inc (NASDAQ:FB) will soon roll out its first major change to its signature News Feed in several years, and many investors and analysts are anxious that the revamp could damage its business. With the latest changes, you'll see few viral videos and news articles provided by media companies. Many creators who post videos on Facebook prompt discussion among their followers, as do posts from celebrities. There's a growing list of media companies that have been forced to drastically change strategy as a result of their reliance on the company's repeatedly changing algorithm, and this will likely be the final straw for many of them.
The changes might make it harder to get messaging to people about a short-term sale, Taylor said.
"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. The news feed ranking update, which is set to roll out globally in the coming weeks, is expected to support that goal. Then it was meaningful content that provided relevant information.
In other words, Facebook wants its products to be fun and useful for its users.
However, the group added, "more detail is needed and we would strongly urge Facebook to be more open and accountable to advertisers and the public in its assessment of the current position and in its reporting of the impact of any measures it takes".
If Facebook doesn't want a certain conservative or liberal publisher in the feed or decides a certain local news publisher shouldn't be there either, that publisher's social media reach will die, causing it significant economic harm.