THE BIGGEST ‘BAIT N’ SWITCH’ IN HISTORY?

This has been brewing since around May. At least that’s when we first started noticing it here at Dangerous Minds and we certainly weren’t the only ones.

Spring of 2012 was when bloggers, non-profits, indie bands, George Takei, community theaters, photographers, caterers, artists, mega-churches, high schools, tee-shirt vendors, campus coffee shops, art galleries, museums, charities, food trucks, and a near infinite variety of organizations; individuals from all walks of life; and businesses, both large and small, began to detect—for it was almost imperceptible at first—that the volume was getting turned down on their Facebook reach. Each post was now being seen only by a fraction of their total “fans” who would previously have seen them.

But it wasn’t just the so-called “fan pages,” individual Facebook users were also starting to notice that they weren’t seeing much in their newsfeeds anymore from the various entities they “liked”—or even updates from their closest friends and family members. Something was amiss, but unless you had a larger “data set” to look at—or a formerly thriving online business that was now getting creamed—it probably wasn’t something that you noticed or paid that much attention to.

When we first noticed the problem, our blog had about 29,000 Facebook “likes.” Our traffic was growing 20% month over month, but our Facebook fans grew at a far faster pace. We were getting hundreds of new ‘likes” every day. Still do. As I write this, our Facebook fans now number over 53,000, not quite double what it was then, but give it another month or so and it will be.

53,000 is a more than respectable number of Facebook fans for a blog that’s only been around for a little over three years. So why is it that our pageviews—our actual inventory, what we sell to advertisers—coming from Facebook shares are off by half to two thirds when the number of new “likes” has risen so dramatically during this same time period?!?!

In a widely read—and widely shared on Facebook—NY Observer article titled “Broken on Purpose: Why Getting It Wrong Pays More Than Getting It Right,” (emailed to me by a friend, a prominent blogger, with the subject line: “Why putting a lot of energy into building a Facebook presence is a sucker’s game”) PR strategist and social media expert Ryan Holiday succinctly laid out the case against the damage Facebook had inflicted upon its most active users with its recently rolled out Promote “option”:

It’s no conspiracy. Facebook acknowledged it as recently as last week: messages now reach, on average, just 15 percent of an account’s fans. In a wonderful coincidence, Facebook has rolled out a solution for this problem: Pay them for better access.

As their advertising head, Gokul Rajaram, explained, if you want to speak to the other 80 to 85 percent of people who signed up to hear from you, “sponsoring posts is important.”

In other words, through “Sponsored Stories,” brands, agencies and artists are now charged to reach their own fans—the whole reason for having a page—because those pages have suddenly stopped working.

This is a clear conflict of interest. The worse the platform performs, the more advertisers need to use Sponsored Stories. In a way, it means that Facebook is broken, on purpose, in order to extract more money from users. In the case of Sponsored Stories, it has meant raking in nearly $1M a day.

I love how Rajaram phrases that so delicately: “Sponsoring posts is important.”
It’s perhaps the most understated stick-up line in history, worthy of a James Bond villain calmly demanding that a $365 million dollar ransom gets collected from all the Mom & Pop businesses who use Facebook. How many focus groups do you reckon it took until Facebook’s highly paid marketing and PR consultants finally arrived at such an innocuous phrase for describing information superhighway robbery?