Facebook's Emotional Limitations and its Effect on the Downfall of the Shares

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Facebook only made recently the step from private company to public company and in the company’s vision, the founder’s influence is still recognizable. This personal note to the concept of facebook is part of the success, yet like with anything else it got also its downside. The bright side of facebook is the creation of space to connect and share, its downside is the desire to control and that clashes with the demands of shareholders of a public company.

Facebook adverts are a great marketing tool, allowing precise planning, targeting and budgeting of adverts, but Facebook itself decides where and when your adverts appear, who sees them and at what time of the day. So if you decide on a certain rate you wish to pay for a click, it is possible that this rate is only good enough to show your advert between 2 and 3 at night and you start wondering about the slow going clicks and the kind of people responding to your advert. It is like a magical hand is moving your advert around in its own interest, not in yours.

If you decide to have a business page on facebook to engage with your clients, you might do adverts to let people know that you are there and they can become fans to be informed what you are up to. Now you think, that what you post gets to the people who became a fan of your page, but this is not the case. Only a small percentage of your fans gets to see your posts and your posts have to create immediate likes in order to be allowed to be seen also by more fan’s. If you are lucky your posts make it to be posted to almost a quarter of your fan’s feeds, for the rest facebook recommends promoting your post with an advert. But it doesn’t tell how many fans will be allowed to see then the post or if another promotion tool will come up.

Whatever you do on facebook, whatever adverts you pay for, it never means it gets the exposure and engagement you thought you were paying for. It’s like holding a sausage in front of a dog, letting the dog jump, beg and get a little bite from the sausage and when the dog thinks he will be rewarded for all his efforts, the sausage is pulled away. When you try sending a message to your page’s fans, you will notice that you don’t have access to all your fans, only to less than 5% and sending a message with an URL can not exceed the number of 5 messages per day, without URL about 20 messages per day.

How does that stimulate businesses to be active in advertising and fan pages? Many are companies active, because little bites are allowed to be taken from the sausage, but for how long are they willing to be treated like that? And for how long are they willing to pay big amounts of money for small bites and for being controlled?

The downfall of the Facebook shares shows that the controlled freedom on facebook has come to a point that essential strategic changes need to be done. Otherwise it will not only be the downfall of shares, but of facebook.

Ute Sonnenberg for