Gaining and Edge: Evaluating the Facebook Algorithm Change

GAININGFacebookEDGE: Change
Evaluating the
AN Algorithm
M80 | GroupM Next Predictive Insights

Image credit: http://www.zastavki.com/eng/Computers/Social_networks/wallpaper-28089-19.htm
Thursday, December 13, 12

THE SITUATION
The 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


ANALYSIS
What did we measure?

• 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”


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


ORGANIC REACH HAS FALLEN
As 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
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.


STATUS UPDATES HELP INCREASE REACH
After EdgeRank Algorithm Change

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.


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



POST ENGAGEMENT HAS IMPROVED

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.


SHARES NOW WORSE AT DRIVING STORIES

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.


SHARES NOW WORSE AT DRIVING CONSUMPTION

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.


ENGAGEMENT STILL MATTERS
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.


WHAT CAN BRANDS DO ABOUT IT?
Optimize against the algorithm



MAKING BACK Change GROUND
After EdgeRank Algorithm
LOST
changes to their algorithm, brand posts would reach
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.


CLOSING INSIGHTS
Facebook Algorithm Change

• 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


JEFF SEMONES Company
President - M80 A GroupM
jeff@m80.com
323.806.4716

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.


Gaining and Edge: Evaluating the Facebook Algorithm Change

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