Last week, we perhaps had a watershed moment in the ongoing maturation of Facebook as a business. Mark Cuban, owner of the Dallas Mavericks, posited that Facebook was “blowing it” by offering the Mavs an “opportunity” to make posts visible to its fans for $3,000.
As one of the most successful business people of our generation, I’m sure Mark originally looked at this dispassionately. The Mavs make investments in social marketing software and FTEs to make their social assets among the best in the world. Additionally, they probably allocate some costs of content production and other shared responsibilities to social media to get an idea of what it all takes (direct costs, resources, % budget, etc.) to maintain. Social investments are not free — Mr. Cuban is spending real dollars just to keep social sites up to snuff. And now, here comes Facebook wanting to charge money for access to Fans — something that was free as little as say six months ago. All you had to do in the past is master Edgerank, Facebook’s cryptic yet somewhat easy to understand formula about optimizing everyone’s News Feed experience.
It’s no conspiracy, Facebook acknowledged it as recently as last week: messages now reach, on the average, just 15 percent of an account’s fans. In a wonderful coincidence, Facebook has rolled out a solution for this problem: Pay them for better access.As their advertising head, Gokul Rajaram, explained, if you want to speak to the other 80 to 85 percent of people who signed up to hear from you, “sponsoring posts is important.”
- Be bold
- Keep shipping
- We can always correct a mistake
- People can’t get away from Facebook
- Should You Run a Social Media Contest?
- Binary Byte: Shading Your Online PR; Managing Black and White Imperatives
- Social, Mobile, Local Media: How Retailers Can Formulate the Best SoMoLo Concoction