Downfall of Facebook Part III. Falling Organic Reach: Reduced Visibility

In part 2 of this series, we discussed the ad-heavy nature of Facebook in the modern day, but in this article, we’ll be looking at the effect this has specifically on organic reach and the ability for people, organisations and companies to go viral.
The evolution of Facebook’s algorithm has dramatically reduced the visibility of posts from business pages, particularly those that rely on organic reach. This shift has had a detrimental impact on businesses, making it increasingly difficult to connect with their audience without significant investment in paid advertising.

The Decline in Organic Reach

Facebook’s algorithm changes over the past few years have prioritised content from friends, family, and paid advertisers over posts from business pages. According to a study by Hootsuite, the average organic reach for a Facebook post in 2021 was just 5.2% of a page’s total likes. This means that a page with 10,000 followers could expect an average post to reach only about 520 people without any paid promotion.
This decline is stark compared to earlier years when organic reach was significantly higher. In 2012, Facebook admitted that the average organic reach for a post was about 16%. Over time, this figure has continued to drop, leaving businesses scrambling to adapt to the new reality of diminished organic reach.

The Challenge for Small Businesses

For small businesses, particularly those in New Zealand, this reduction in organic reach is a significant hurdle. These businesses often rely on Facebook to engage with their community, promote products and services, and drive traffic to their websites. With fewer followers seeing their posts, the effectiveness of organic social media strategies has plummeted.
A survey by Buffer found that 43% of marketers reported a decline in Facebook’s organic reach in the past year. For small businesses with limited marketing budgets, this trend is particularly concerning. Without the financial resources to invest heavily in paid advertising, many small businesses find it challenging to maintain their visibility on the platform.

Case Study: A New Zealand Cafe

Consider the case of a small café in Auckland that has been using Facebook to attract local customers. In 2018, the café’s posts about daily specials, events, and promotions regularly reached hundreds of followers and generated significant engagement. By 2021, however, the café noticed a sharp decline in organic reach. Despite maintaining a consistent posting schedule and creating engaging content, their posts were reaching only a fraction of their previous audience.
The café owners decided to experiment with Facebook ads to boost their visibility. While this resulted in increased reach and engagement, the cost of maintaining a consistent advertising campaign quickly added up, straining their limited marketing budget. This experience is not unique and highlights the broader issue faced by small businesses trying to navigate Facebook’s evolving landscape.

Decreased ROI

The reduced visibility of organic posts has led to a significant decrease in the return on investment (ROI) for many businesses using Facebook for marketing. As organic reach declines, businesses are forced to spend more on ads to maintain their visibility, leading to increased marketing costs without guaranteed engagement.

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The Rising Cost of Facebook Advertising

As more businesses compete for visibility on Facebook, the cost of advertising has risen significantly. According to WordStream, the average cost-per-click (CPC) for Facebook ads across all industries was $1.72 in 2021, with some industries seeing even higher costs. For small businesses in New Zealand, where marketing budgets are typically smaller than those in larger markets, these rising costs can be prohibitive.
Moreover, the cost of maintaining a presence on Facebook through ads can quickly add up. A business that used to rely on organic reach must now allocate a substantial portion of its marketing budget to paid ads, just to achieve the same level of visibility. This shift in dynamics means that businesses are spending more money on advertising without necessarily seeing a corresponding increase in engagement or conversions.

ROI Challenges for Small Businesses

For many small businesses, the increased cost of advertising has not translated into improved ROI. A survey by Social Media Examiner found that 52% of marketers believed their Facebook marketing efforts were less effective in 2020 compared to previous years. This perception of decreased effectiveness is particularly pronounced among small businesses that lack the resources to compete with larger companies in the advertising space.
For instance, a boutique clothing store in Wellington might have previously relied on organic posts to showcase new arrivals and promotions. With the decline in organic reach, the store now needs to invest in paid ads to maintain visibility. However, the increased ad spend does not always result in higher sales or customer engagement, leading to a lower overall ROI.

Data on Decreased ROI

Data from a study by HubSpot supports the observation of declining ROI. The study found that 45% of marketers reported a decrease in organic reach, and 35% reported a decrease in ROI from Facebook ads. These findings highlight the challenges businesses face as they navigate the changing landscape of Facebook marketing.

Strategic Adjustments

To mitigate the impact of decreased ROI, businesses must adapt their strategies. Here are some recommendations:
  1. Diversify Marketing Channels:
    • Businesses should not rely solely on Facebook for their marketing efforts. Diversifying across multiple platforms such as Instagram, LinkedIn, and Google Ads can help spread the risk and reach a broader audience.
    • Email marketing and content marketing (such as blogs and videos) can also provide valuable engagement opportunities outside of social media.
  2. Optimise Ad Spend:
    • Carefully monitor the performance of Facebook ads and adjust targeting to ensure the best possible ROI. Utilising Facebook’s advanced targeting options can help reach the most relevant audience.
    • Experiment with different ad formats and creative content to see what resonates best with the audience.
  3. Leverage Other Facebook Features:
    • Utilise Facebook Groups and Events to foster community engagement. These features often have higher organic reach compared to regular posts on business pages.
    • Consider using Facebook Live and Stories to create more engaging and interactive content.
  4. Focus on Content Quality:
    • High-quality, engaging content is more likely to be shared and interact with organically. Investing in professional content creation can enhance the appeal of posts and improve organic reach.

 

Conclusion

The decline in organic reach on Facebook and the rising costs of advertising present significant challenges for businesses, particularly small ones in New Zealand. The reduced visibility of posts forces businesses to spend more on ads to maintain their presence, leading to decreased ROI and increased marketing costs. To navigate these challenges, businesses must diversify their marketing strategies, optimise ad spend, and focus on creating high-quality content. By adapting to the evolving landscape of Facebook, businesses can continue to leverage the platform effectively and achieve their marketing goals.

References

  1. Hootsuite. (2021). Digital 2021 Report.
  2. Facebook. (2012). Organic Reach Data.
  3. Buffer. (2020). State of Social Media Report.
  4. WordStream. (2021). Facebook Advertising Costs.
  5. Social Media Examiner. (2020). Social Media Marketing Industry Report.
  6. HubSpot. (2021). Facebook Marketing Study.

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