In this article, we will discuss the changes that Facebook plans to make in regards to their News Feed and how it will affect both users and advertisers. Facebook plans to make users’ News Feed focus more on updates from friends and family and less on advertisers that appear on a user’s News Feed. These businesses pay to publish their advertisements on Facebook. This is a big change that Facebook’s CEO, Mark Zuckerberg, has decided to make. Zuckerberg even acknowledges that this change will likely decrease time that users will spend on Facebook all together. This change reflects a big marketing implication for both Facebook, the types of businesses who use Facebook as an advertising platform, and users.
Facebook is a platform that many businesses use to market their product. In the marketing mix, this would be considered promotion. For businesses, promotion is essential in selling a product. Facebook and Mark Zuckerberg are making this decision on their own, yet they are affecting the many businesses who use their platform as a way to promote a product. By focusing more on users’ family and friend posts, advertisers will not be as focused on in general. Also, the user time is expected to decrease; therefore, advertisements will have a smaller amount of users viewing their advertisements. The product, and potentially sales, could have an impact from companies that prioritize Facebook as a major marketing platform. From a Product Orientation vs. Market Orientation standpoint, Facebook is looking to change their product image. The shift is making users focus more on their friends on Facebook instead of advertisements. This shift is implying that Facebook values the relationship that their users have with one another over businesses relationships’ with users. A benefit can come from this for the users, but not as much for the businesses.
Personally, I think this shift reflects what Facebook values. The four types of utility all have an impact from this change. The form of News Feed, a product of Facebook, is being transformed. The design is being shifted. Placement of advertisements and how and where they are distributed is also being changed. Time, with an expected decreased on the platform, is being changed. Possession of what people see and have on Facebook is also being changed. These changes were made based on a new understanding of what Facebook customer users value. A benefit from this is being able to focus more on the relationships with a user’s personal friends and not as much on random advertisements and videos that may appear on their fee. Looking at it from a SWOT analysis standpoint, the strengths of Facebook are satisfying the customers, weaknesses are possibly hurting relationships with other businesses, opportunities are using this as something in their advantage over competitors, and threats could be a decrease on their stock because of this move. All in all, this new algorithm from Facebook is looking to change the user’s experience when interacting with Facebook and hopefully for the better.