Convince&Convert: This Chart Explains the Reachpocalypse and Why Facebook is Laughing All the Way to the Bank

TECHMarket Communications

Convince & Convert

April 7, 2014

by Jay Baer

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Facebook organic reach for business pages is plummeting, and will drop even further because Facebook is a public company that has fiduciary responsibilities to their shareholders to maximize returns.

Facebook_Chart

This chart we made shows Facebook’s declining organic reach (according to a widely cited study from Social@Ogilvy) charted against Facebook’s stock price during the same period. As organic reach dropped from approximately 12% to 6% (and now often at 1%), Facebook’s stock price moved from nearly $50 to nearly $70, adding billions of dollars in market capitalization.

Yes, Facebook encouraged businesses to build and reach audiences for “free” on their platform (until that free ride ended), and that should be no surprise whatsoever. Clear-eyed business observers have been raising the alarm about building your house on rented land for years, but Facebook has still been able to pull off the greatest Gillette scam ever (you…

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