GAINING AN EDGE:Evaluating the Facebook Algorithm ChangeM80 | GroupM Next Predictive Insights

Image credit: http://www.zastavki.com/eng/Computers/Social_networks/wallpaper-28089-19.htm

Thursday, December 13, 12

THE SITUATIONThe Facebook Algorithm Change

• Facebook implemented changes to their algorithm on September 20th, 2012• It was designed to minimize spam + complaints, and improve the consumer experience

The thought was that Post Engagement would improve

With the update Reach of an individual post would diminish

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What did we measure?ANALYSIS

• We evaluated 25 different brands

More than 3,000 posts

• Change in Reach

Reach = % of fans that see a brand’s post• Change in Engagement

% of posts that create a “Story”

% of posts that create “Consumption”

Thursday, December 13, 12

WHAT DOES THE FACEBOOK ALGORITHM CHANGE MEAN FOR BRANDS?Impact on Organic Reach

Image Credit: http://wazzeh.com/wp-content/uploads/2012/11/The-power-Of-Facebook-Marketing.jpg

Thursday, December 13, 12

ORGANIC REACH HAS FALLENAs Facebook had indicated

For the brands we studied, before Facebook made the changes to their algorithm, brand posts would reach 15.56% of their fan base on average.

As expected, after the changes to the Facebook algorithm the reach has gone done. Now, brand posts only reach 9.62% of their fan base on average.

This amount to a 38% drop in reach.

Understanding the reach has decreased, we now want to dive deeper into the change in reach by type of post to see if all post types have seen a drop in reach.

Thursday, December 13, 12

After EdgeRank Algorithm ChangeSTATUS UPDATES HELP INCREASE REACH

While we have observed a drop in reach across post types by a brand -- Photo, Link, Video, and Share posts, surprisingly Status Updates have actually seen an improvement in organic reach.

Considering that the recent algorithm changes were targeted at ensuring brand posts reach the most engaged parts of your fan base, it makes sense that Facebook has increased the penetration of brand messaging through Status Updates. These fans have liked your page to stay up to date with the brand, and our research suggests that the new Facebook algorithm has improved our ability to promote our updates.

Evaluating the data at this level brands can begin to build strategies that help them optimize under the new Facebook algorithm. For the brands we studied, this data reveals that to maintain organic reach brands should shift an increased focus on pushing engaging status updates.

Thursday, December 13, 12

WHAT DOES THE FACEBOOK ALGORITHM CHANGE MEAN FOR BRANDS?Impact on Engagement

Image Credit: http://wazzeh.com/wp-content/uploads/2012/11/The-power-Of-Facebook-Marketing.jpg

Thursday, December 13, 12

After EdgeRank Algorithm ChangePOST ENGAGEMENT HAS IMPROVED

For the brands we studied, before Facebook made the changes to their algorithm, 0.76% of post impressions generated a story. In other words, before the changes, one out of every 132 impressions generated a story.

After the changes to the Facebook algorithm the Engagement has improved. Now, 1.49% of post impressions generate stories. Another way of saying that is, one out of every 67 impressions generate a story.

This amounts to a 96% increase in engagement.

Understanding the engagement has improved, we now want to dive deeper into the engagement by type of post to see if all post types have seen this pattern of lift.

Thursday, December 13, 12

SHARES NOW WORSE AT DRIVING STORIESAfter EdgeRank Algorithm Change

We evaluated the changes in engagement through Stories by post type. Stories are a very active way of engaging with a posts and include Sharing, liking, or commenting on your post, Answering a question, or Responding to an event.

We have seen engagement rates increase for most of the post types we evaluated.

Photos, Status Updates, Links, and Videos have seen an increase in engagement.

However, Shares posted by a brand are experiencing a substantial drop in engagement rates. Knowing that these changes to the Facebook algorithm are designed to make sure brand posts are being delivered to fans that are truly interested in interacting with a brand, it is not surprising that these fans a now less likely to engage with posts where a brand is sharing someone else’s content.

Thursday, December 13, 12

SHARES NOW WORSE AT DRIVING CONSUMPTIONAfter EdgeRank Algorithm Change

We also evaluated the changes in engagement through Consumption by post type. Consumption should be viewed as a broader metric for measuring engagement. Consumption includes all of the Story actions, but additionally includes click activity that does not produce a story.

Examples of these actions include clicking on a posted photo to expand the image or playing a posted video.

Photos, Links, and Videos have seen an increase in engagement through Consumption.

Status Updates and Shares are experiencing a decrease in engagement rates of Consumption.

Thursday, December 13, 12

ENGAGEMENT STILL MATTERSAfter EdgeRank Algorithm Change

We now understand that reach of organic posts have decreased, but engagement with those posts has increased.

The last detail we wanted to evaluate was: how do engagement and reach work together? Specifically, if a post is highly engaging, does it experience a higher reach? If yes, by how much? And, has that changed since the advent of the new Facebook algorithm?

We found that engaging content does in fact increase the organic reach of a post. Our analysis revealed that, before the Facebook algorithm change, when a post experienced higher than average engagement, that post would see an average lift in organic reach of 71.43%.

Given that the recent Facebook algorithm change has been promoted as a move to emphasize the importance of engaging content, we expected that engaging content would have a greater impact on organic reach after the algorithm change. However, our research did not find that to be the case.

Surprisingly, after the changes to the Facebook algorithm, the impact of engagement on organic reach has decreased. Engaging content does still improve organic reach, but not as much as it previously did. Since the Facebook algorithm change, when a post experiences higher than average engagement, that post sees an average lift in organic reach of 21.43%.

So, while engagement rates have increased on average, the benefit that engagement gives to increasing organic reach has decreased.

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WHAT CAN BRANDS DO ABOUT IT?Optimize against the algorithm

Image Credit: http://wazzeh.com/wp-content/uploads/2012/11/The-power-Of-Facebook-Marketing.jpg

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MAKING BACK LOST GROUNDAfter EdgeRank Algorithm Change

For the brands we studied, before Facebook made the changes to their algorithm, brand posts would reach 15.56% of their fan base on average.

As expected, after the changes to the Facebook algorithm the reach has decreased to 9.62%.

But brands don’t have to simply accept the drop in reach. In an effort to optimize organic reach, we went back and simulated a posting and content plan using the insights we learned through this study.

For this plan we maximized post types with increased organic reach and minimized post types with decreased organic coverage. In our simulation, we also considered post types that generate strong engagement and therefore increase reach.

After developing the optimized posting plan, we estimated the organic reach of our new plan to be 12.4%.

Unfortunately, the optimized posting plan still does not return our brands to the 15.56% reach they were experiencing before.

This means that, in order to recapture the performance that brands enjoyed before the new Facebook algorithm, brands will likely have to supplement their organic social strategies with paid social strategies.

Thursday, December 13, 12

Facebook Algorithm ChangeCLOSING INSIGHTS

• Reach has fallen by 38%• Engagement has increased

96% increase in Stories per Impression

59% increase in Consumption per Impression

• Evaluate what is effective for your brand

Develop a posting plan and schedule based on what works for your client or brand

Thursday, December 13, 12

JEFF SEMONESPresident - M80 A GroupM Companyjeff@m80.com323.806.4716

Thank You

As a co-founding partner and President of M80 Jeff is responsible for overseeing business and strategic development along with managing client and partner relations. Jeff also nurtures the integration of M80’s social media expertise into the sister agencies within GroupM and WPP. Since 1999, he has been instrumental in the evolution of M80 as an industry leading social media innovator. Over the years Jeff strived to broaden and diversify a client base that includes Audi, Discover Card, Glaxo Smith Kline, Ford, Warner Brothers, Macy’s, At&t, Microsoft and Dell to name a few. Prior to M80, Jeff worked in the Contemporary Music department of the William Morris Agency, the culmination of more than ten years in the music and entertainment industries. Jeff earned a Bachelor of Business Administration degree with a major in Marketing from the University of Iowa.

Thursday, December 13, 12