Facebook: Corporations Must Pay

Corporations Must PayGood news, bad news from Facebook. Corporations will no longer be able to leverage Facebook pages into free corporate promotional ads in your news feed. But that won’t lead to more news and fewer ads in your newsfeed. But going forward, corporations must pay starting in January.

The announcement was made late last week, with the goal to make the news feed more “personal, relevant and useful.” The ads have long been placed in the feeds of fans of a company page at no charge to the company.

In addition to Facebook’s potential to generate more ad revenue, the expectation for companies is that organic distribution is likely to fall significantly over time. Facebook is essentially saying – if you want to reach your fans, pay for it.

The change came after the Social Media giant surveyed more than 500,000 users for ideas on improving their news feeds. A top complaint concerned too many promotions. Surprisingly, when showed a sample feed with a mix of ads and promotions, ads were preferred buy the users.

Whether or not companies, especially B2B, will maintain their Facebook presence. Facebook says of course they will, but only time will tell.

What do you think? Especially if you are a B2B marketer, how important is Facebook?

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