Amendment To Facebook’s Algorithm May Lead To Increase In Ad Costs

Facebook has made changes to its newsfeed display and posts from family and friends will be given more importance over those from advertisers. This means that the cost of advertising on Facebook is set to increase yet again.

Hours after the announcement was made, Facebook’s common stock fell by 4% and numerous agency account executives have revealed that they intend to change media plans according to this amendment to Facebook’s newsfeed algorithm. Advertisers have been informed that this amendment will affect page reach, video impressions and referral traffic. As a result, advertisers should expect to pay more for Facebook advertisements and be ready to pay more per impression as well as invest in quality copy to come up with content that is engaging and well thought-out.

While this amendment to Facebook’s algorithm is good news to users, creative agencies and advertisers will have to rethink their social media marketing campaigns to focus on smarter targeting and creative copy so as to capture the attention of viewers and readers.

According to Brian Wieser, senior research analyst at Pivotal Group, London, Facebook will seek to fuel Instagram’s growth in order to balance out the expected decline in revenue from advertisers following this announcement.

Read more at Campaign-Asia