FaceBook Social Media Business is Anticipated to Cost Companies More Money

Duke University published a study this year about social media. The average company spends approximately nine-percent of their marketing budgets on social media. Experts predict that this number will increase to 25-percent within the next five years. However, nearly half of the companies that were interviewed could not specifically show the direct impact that social media marketing had on their businesses.

The most difficult part about measuring the benefits of social media advertising is that businesses can barely keep with the increasing shift of this relatively new social platform, which means measuring the benefits is a very difficult challenge.

Facebook’s proprietary algorithm has a limited reach of 16-percent of their brands’ fans. But a recent report published by Ogilvy, a research firm, has highlighted several statistics showing that the number has steadily declined to six-percent. The report’s author, Marshall Manson, explains, “Increasingly, Facebook is saying that you should assume a day will come when the organic reach is zero.”

Today, there is more potential content flooding reader’s news streams, which ultimately means that less content is being viewed and read. Facebook is also highly encouraging businesses to use their paid social ads, which read larger percentages of fans.

For businesses to stay up-to-date with Facebook marketing, they will need to spend twice as much on social ads. More companies will also reach out to other social marketing channels, such as Twitter, China-based messaging service WeChat and Instagram. Businesses will need to diversify their social media marketing channels in order to hedge against further changes at Facebook, or they could possibly risk losing their online social media campaign.

There are substantial social media benefits, but it is vital for businesses to diversify their social media growth. Additionally, social media business can change instantly, with new platforms gaining popularity, especially among younger consumer crowds.

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