What Facebook’s News Feed Change Means for Users and Businesses

What Facebook’s News Feed Change Means for Users and Businesses

Thanks hi welcome to life a brand quick
tanks Steve Pence Tyler Mcknight no Kevin Wade today he’s in New Mexico but today
we kind of want to go over what happened with Facebook and it rolled out at
midnight things coming out in the news big things in according to multiple
publications I’ve read they are claiming this a bombshell and basically what is
happening is and I’m quoting from vice news on Thursday night Facebook dropped
a bombshell the company is set to roll out a series of changes to the news feed
out Rome that will prioritize posts from your friends and bury stuff from
publishers and brands the article continues the upshot of this is that
Mark Zuckerberg and Facebook believe that while it might decrease the amount
of time people spend on Facebook and certainly short-term revenue it’ll be
better for Facebook and its users in the long run what about those businesses
though yeah let’s get into that a little bit working at an advertising agency we
know first hand that that one of the biggest things driving driving our
revenue these days is ad sales and with Facebook rolling up this new algorithm
in my opinion as it as a Facebook media buyer I know from a fact for a fact that
this will a limit the amount of ads that are seen in me
it’ll drive up the cost of those ads so it’s a double negative in my opinion
we’re gonna be losing money and also having to spend more money so I’m trying
to rack in my brain I know I can’t stop spending on Facebook but how do i combat
this and you know what what do I recommend our clients do with those
dollars now the next book is gonna be live into this I think I think right now
I’m gonna continue to do the same thing it starts a to see in tests what is
actually gonna be cheaper and what’s gonna be more expensive now I personally
haven’t seen this happen to my newsfeed yet but I do know that sink posts from
my mom that it snowed is gonna be amazing to my day it’s gonna make me
feel so much better about myself you know yeah so I’ll talk quickly a little
bit more about the business side but then I want to get back into what you’re
talking about the human psychology and how we interact with Facebook and how
they’ve changed over the past year or so with the fake news
with the Russian BOTS with just being overloaded with videos and publishers
but I do want to talk about the ad side of things I think that boosting posts
for example it’s going to be more expensive to reach they’re going to
limit that reach by default by saying hey we’re going to shift back more
towards a model of seeing your friends and less businesses yet advertisers and
brands are still flooding into Facebook and spending more and more each year as
they realize that’s the space that people exist in so what that leads me to
believe is that if you have a business page and you own it and you run it and
you buy ads on it you’re probably going to see a significant drop and reach and
have to pay more to reach those same people but here’s the thing there
there’s a quickness article the sex you effect in a stat that really gives a
reason why this should not scare Facebook at all and why they may feel
they can make this decision at to encourage you to spend less time on
Facebook yeah so according to vice news Facebook and Google at duopoly the
Facebook and Google Ad duopoly great word and word of the day everybody say
that five times fast hook in and combined 63 percent of all digital ad
dollars last year while Facebook is expected to absorb an ever great chunk
of that money over the next few years so this is the reason why they’re not
worried about it I mean it’s still the biggest place to buy ads and write and
sell as next to Google so they’re not going anywhere in that in that term and
you know another thing they continue to say is that the only thing that scares
Facebook executives more than people using a social app that isn’t known by
Facebook play snapchat is people having a bad time on Facebook and you know
that’s that’s actually I don’t know if that’s true or not but it does seem to
me that if they’re making these changes they’re willing to eat I think it’s like
2.3 billion dollars estimated less ad dollars in the coming year but they
really do care about us so they want us to spend less time on Facebook and
here’s a reason why and this is according to Zuckerberg Korena
Zuckerberg the solution to these woes is to encourage users to spend time talking
or engaging with other people on Facebook rather than gazing at videos of
animals and ads the research shows that when we use social media to
with people we care about it can be good for our well-being we can feel more
connected and less lonely in that core vote correlates with long term measures
of happiness and health so you were around before Facebook Camarillo correct
in social media can you like pick a point in your life when you all you
cared about was your Facebook newsfeed and like that’s how you gauge your
standing in society and how you gauged your popularity was how many likes you
got on your Facebook post yeah things like that well don’t go into black here
yeah I mean I think to the point and why Facebook is doing this and and why I
think it’s actually kind of a brilliant play is that long-term I think they’ve
been seeing people drop off from Facebook or just beginning tired of
seeing all the news the fake news the floods that’s what I mention and yet
people are like you said are using it for dopamine gains they see I got 50
likes on my status so the way we’ve been interacting with Facebook has changed
significantly in the last five years we’ve become more dependent on it as
people I think in the way we consume information share information and just
exist in the culture in the world is changed and I think they’re trying to
get back to improving that experience so long-term more users will enjoy that
experience and be loyal to Facebook while simultaneously driving up ad
prices because of the dwindling supply long-term revenue gain and you know
here’s a funny thing like you know there’s all this research that shows
that the dopamine rush we get from a social media interaction is almost the
same as someone shooting up heroin and you know to me that that lense is
something to say that if we continue down the path and Facebook doesn’t make
this change I’m saying I support this change by the way we are gonna have some
serious serious problems that our hands and that people will be able to function
unless they have social media they’ll have that withdrawal and they will have
that that thought of I don’t I don’t mean anything and you’ll see you know I
would even so you can see guests coming from it but I’m not gonna go that hard
because this is a happy day yeah but you know in essentially social media outlets
had become big tobacco they being having a like very addictive product that they
know people are gonna continue to use no matter the type of shit they keep
bumping into it and you know whether it’s good for us or bad for us we’re
gonna continue to use it it’s just like smoking a cigarette I quit but I don’t
miss it anymore so I’m gonna have it face
see what happens but go ahead you’re gonna say no no I love that that you
know people are addicted to it so I think Facebook’s hedging their bets and
this is where they’re kind of taking a step back reevaluating their platform
making sure they don’t spin out of control so to speak and with this I mean
I think generally when they release this information even though by the way the
stock’s price of Facebook have gone down like 4% today is trading 4% lower today
and I feel like Zuckerberg hadn’t knew that was going to happen anyway but
long-term I think it’ll go back up it’s just a return to normalcy I think
they’re just really ating everything and I think simultaneously though the big
play for them is is the add prices because as it gets more scarce people
will continue to flood in and they’ll pay more to get their message out there
because Facebook is artificially kind of shrinking the reach by default that
means people have to pay more huh so it’s brilliant
and here’s another funny thing to think about the market itself so Facebook’s
biggest competitors use Facebook itself as one of their top promotional
platforms now what’s so great about this is that Facebook is going to start
decreasing their reach so they use their competitors to boost up their own
platform and now they’re taking it all the way from them it it’s genius in my
mind and you know we were talking about this earlier how you how you think and
and some other people the office think that eventually this is going to lead to
a subscription base on Facebook do you think that’s gonna be in the near future
do you think that’ll happen that’s an interesting play um you know
face I feel like that is against everything Mark Zuckerberg stands for
already beginning at least with this but he took it window down a minute
it’s like a probably yeah but things change and the way we consume media
changes but I don’t think they’ll they’ll have to do that if their ad
revenue increases due to this they won’t have to switch to a subscription model
just yet and why would people subscribe unless it was ad free completely but
honestly I can think I think they’re gonna make more money with AD with the
ad model versus a subscription model but but but I’m gonna take it back to an
addiction thing so even if they do make people pay to be a part of the service
because that addiction in this this way of life is so ingrained
in them that they can’t help but do it that’s why I was willing to pay fifteen
dollars for a pack of cigarettes in New York City you know it’s it’s it sounds
outrageous but people will pay it and oh I know people would pay for but did you
think Facebook if they if they say they care about people as much as they do
they won’t do that I think if somebody’s and there’s nothing this is to make sure
that people don’t become addicted to it because essentially it could ruin
society and you know there’s a great black mirror of so that we talk about
the you know that takes in social clout into it and you know I’m not saying
that’s gonna have it but it’s a great dialogue on what what our society is
becoming it’s a very weighted view on it but you know I think it’s a great
example of how if you haven’t seen it go check it out black bear season 3 um but
yeah I think this would be very interesting in the coming year and I
it’s gonna be very hard for me to come up with new strategies for our clients
but I’m really excited to see how we can do it and if we can miss some of the
first people in the market to take advantage of this and take it somewhere
then you know so be it so absolutely businesses and agencies and buyers of
Facebook should be re-evaluating their strategies when it comes with social
because of this news I mean it’s just news right now I don’t know if this has
been implemented in Veda anywhere else but I feel like in the coming months
businesses will continue to see their their reach tank if this is implemented
and they’re going to have to reevaluate their content strategy they’re gonna
have to make their content better and and I think this is a good thing for the
industry in general because it’ll promote people to push good content
because that will went out things that are shared throughout Facebook will win
out reverses the crap that floods in so I think that will kind of flush out all
the crap and we’ll see trading the swamp so to speak and we’ll see a return to
maybe good content in addition to seeing your friends and family on there and
make for better

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