the fall of facebook's organic reach (and why it's okay)

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The Fall of Facebook’s Organic Reach (and why it’s okay) W

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Has your business noticed a frustrating fall in organic reach on Facebook? You're not alone. But how bad is it, actually? This presentation will take a look at the numbers behind the fall in Facebook's organic reach, including the most recent stats. We'll also examine the one reason that Facebook is still worth investing time, energy (and yes, resources) into. Can you guess what it is?

TRANSCRIPT

The Fall of Facebook’s Organic Reach

(and why it’s okay)W

10k

8k

6k

4k

2k

0

Disney BMW Intel Starbucks Mercedes HarleyDavidson

Ferrari

-77% -53% -31% -33% -61% -45%

May ‘13 May ‘14

Average engagement per post for the most engaging brands on Facebook

+48%

18%16%14%12%10%8%6%4%2%0%

Feb 2012 Sept 2013 Nov 2013 Dec 2013 Mar 2014

Facebook’s Organic ReachFeb 2012 - March 2014

16%

12.4%10.15%

7.83%6.51%

16%

14%

12%

10%

8%

6%

4%

2%

0%

Oct ‘13 Nov Dec Jan ‘14 Feb

Facebook’s Organic Reach (by page size)Oct ‘13 - Feb ‘14

All PagesPages with 500k Likes or morePages with 100 - 500k LikesPages with less than 100k Likes

Facebook Status Update Reach ChangeReach/Fan between Jan 7 and Feb 4th, 2014

25%

20%

15%

10%

5%

0%

1/7 1/9 1/11 1/13 1/17 1/19 1/211/15 1/23 1/25 1/27 1/31 2/2 2/41/29

Jan 20th’s Algorithm Change

Why That’s all Okay...

Cost to Reach 1000 People with Facebook Ads(vs other ad platforms)

$32.00

$20.00

$8.00

$7.00

$2.75

$0.25

Newspaper

Magazine

Radio

Cable TV

Google AdWords

Facebook Ads

Facebook Ad Click-Through-Rates(Q3 2012 - Q3 2013)

.25%

.20%

.15%

.10%

.05%

.00%

07/1

208

/12

09/1

210

/12

11/1

212

/12

01/1

302

/13

03/1

304

/13

05/1

306

/13

07/1

308

/13

09/1

2

Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13

Facebook Ads Overall CPC and CTRUS Q3, 2012 - Q3, 2013

Facebook CPC is down 40% Year-on-

Year

Facebook CTR is up 171% Year-on-Year

Every dollar spent on Facebook returned 2.74 dollars in additional sales.

That was 3.6x better than the ROI attributed to TV ads.

In all, 27% of incremental sales attributed to the

Christmas campaign came from Facebook, but only 2% of the cost.

A Case Study: Coca Cola Facebook Ads vs TV ads December 2013