Published: Sun, January 14, 2018
Markets | By Noel Gibbs

Facebook's new move may hit ad takings in short term

Facebook's new move may hit ad takings in short term

Facebook made some updates to its News Feed that would change how two billion users see posts, videos, and photos.

The American Internet entrepreneur said they have recently obtained feedback from the community that public content is crowding out personal moments.

San Francisco: Shares of Facebook fell more than 4 per cent on Friday and were on track for their worst session in more than three months after Chief Executive Mark Zuckerberg announced changes that he said would hit user engagement in the near term.

On top of that, lower organic reach may prompt some businesses to buy more advertising on Facebook.

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Under the revised regime, there will be fewer posts from brands, pages and media companies and more from people.

This initiative would result in causing people to spend much less time on the social networking giant. They make this argument despite the fact that Facebook has editorial control over content posted on the platform and - with the changes now being implemented - the fact that Facebook is deciding what factors make news sources worthy of being placed in its News Feed.

Currently, News Feed has been created to share a mix of "public" content from brands along with posts by friends and family.

We've tried our best to keep up, continuing our goals of finding good, useful information about your community while also trying to make it as visible to you on Facebook as possible. The social network drives about 17% of the visits to the websites of companies participating in Digital Content Next, a group that represents publishers including Bloomberg News, CNBC, 21st Century Fox Inc. and Al Jazeera, said Jason Kint, CEO of the organization. Updates on ranking can be expected in the next few months so Facebook users will have more opportunities for interaction.

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One of our big focus areas for 2018 is making sure the time we all spend on Facebook is time well spent.

Meanwhile, investors and advertisers are likely to be anxious by a line in Zuckerberg's Facebook post announcing the changes.

"We can feel more connected and less lonely, and that correlates with long term measures of happiness and health", he wrote. This also means that those viral videos and posts that you did not interact with but became aware of as soon as you opened Facebook will now be seen when you scroll down the feed. Friends and family will be shown more.

He quoted an academic research pointing out that interactions with the loved ones are more healthy and important for a person's wellbeing, instead of just reading news articles or watching shared videos. Some 45% of USA adults get news from Facebook, according to a Pew Research poll in September, and many news organization have come to depend on the traffic they get from the social networking - much of it generated from users clicking on stories they see in their news feeds. But my news feed was crowded with sponsored posts. But when Facebook is used to deepen friendships that have already been struck and to forge new relationships, the social network helps people feel less alone.

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"We note that Instagram already announced 800 million MAUs in September (vs. 700 million in April) as this platform remains a "golden jewel" in Facebook's platform in our opinion with healthy monetization and ad growth set to play out in 2018 based on our forecasts".

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