WHAT'S HAPPENING TO FACEBOOK AFTER CHANGES IN 'NEWS FEED'

According to AdStage company data, after changes to the 'News Feed' algorithm, the price of Facebook advertising has increased without having the content of various publishers prioritized.

Facebook announced the change of 'News Feed' in January and AdStage found that CPMs [cost per 1,000 impressions of advertising] rose to 122 percent compared to the previous months, Business Insider writes.

Changing the Facebook algorithm means that less news articles and ads are appearing to users, leading to fewer impressions of the ads. Moreover, the world's largest network reported that globally, users spend on average two minutes less per day on the platform. Assuming that advertisers have kept their Facebook budgets constant, this would lead to higher CPM for ads on this platform.

It is worth mentioning that the Facebook advertising system is ultimately mechanical - it is an auction process that sets prices on demand and competition and is not biased to buyers, whether it is a big brand or a political campaign, conveys telegraphy.

However, reducing advertising impressions has not prevented Facebook from boosting advertising revenue. The company earned $ 12.8 billion in advertising revenue in the fourth quarter of 2017. To ensure that reduced advertising impressions do not adversely affect its end, Facebook may focus on increasing its client base in advertising through small businesses, which it expects to be a major contributor to future growth .