Business Insider writes about how online retailers have been hit hard by Facebook’s new News Feed.
It turns out the News Feed tweak did more than just highlight “high quality” news stories. It also totally buried posts from retailers on Facebook.
A source from one retailer told us that her company’s “reach” on Facebook declined 40% to 50% after the change. Another source from a different online retailer said that since Facebook’s change, her company’s posts are getting seen by an 80% smaller audience.
Not that the change in reach affected sales:
All the retailers we spoke to emphasized that their actual sales have not declined since Facebook made the change. But each said they’ve only been able to maintain sales by increasing the amount of money they spend on Facebook ads.
Facebook wants businesses to pay to enjoy the benefits of using it as a marketing and advertising platform. The change won’t hurt big businesses or established brands, but it will make it a lot harder for smaller start-ups to gain a foothold now.