ibusinesslines.com September 25, 2018

News Feed changes trigger 4% fall in Facebook shares

13 January 2018, 11:07 | Jodi Jackson

Mark Zuckerberg the founder of Facebook speaks at a convention in San Francisco April 30

Mark Zuckerberg the founder of Facebook speaks at a convention in San Francisco April 30

Here are some frequently asked questions about what users and businesses might expect from the changes.

Zuckerberg initially scoffed at the suggestion Facebook had been used as a Russian propaganda tool, before acknowledging that mistakes had been made and promising to do better in 2018.

Though the shift back to personal interaction may not mean fewer paid marketing spots in users' feeds, any drop in engagement and attention may still translate to fewer ad dollars.

Shares of Facebook fell more than 4 per cent on Friday and were on track for their worst session in more than three months after Chief Executive Mark Zuckerberg announced changes that he said would hit user engagement in the near term.

The company also faces pressure from regulators in the USA and overseas, and a growing backlash from academics, lawmakers and even early executives and investors about the ways in which social media may be leaving us depressed, isolated, bombarded by online trolls and addicted to our phones. "But a sustainable solution to the challenges of the new information ecosystem requires further measures", he said.

Facebook's stock price dropped nearly 6 percent on Friday morning before regaining some ground.

John Ridding, the chief executive of the Financial Times, warned on Friday that the domination of online advertising revenue by search and social media platforms was putting pressure on media firms. Zuckerberg already signaled this would happen late a year ago, when he said the company's planned investments in preventing abuse would hurt profitability. At least, that's what the company hopes.

Many publishers have already recognized that they must spread their content beyond Facebook.

For media companies, a reliance on the company as a driver of traffic has proved an unreliable business model, given that it can change what it prioritizes in its News Feed at any time. The changes could jeopardize that route to their audiences, though some speculate it could be a ploy to force these companies to buy more Facebook ads. Facebook accounts for about 17 percent of visits, on average, to the digital companies he advises, he said. At the time, journalists' two biggest fears were that Facebook would institute a pay-to-play strategy as described above, and that it would take its new news feed worldwide.

Do you enjoy arguing with people you disagree with? "Good on Facebook - they are doing the right thing, long-term". So yes, this is possible. In real life, people don't tell others to kill themselves when they say they like pineapple on pizza.

The world's 500 richest people gained US$1 trillion in 2017 and an additional US$192 billion in the first two weeks of 2018, according to the Bloomberg index.

"There will be less opportunity to expose Facebook users to brands", Cakmak said. Of course, this is hard to verify independently, since the company doesn't often show that data to outsiders. For one, it knows how much time you spend reading an article. Video, especially, has been a big focus for the social media giant - and videos have been especially good at keeping users around.

While analysts were sanguine, some users, particularly publishers, were anxious.

Will the changes make people happier or sadder? .

"This update is more about amplifying the things people value".

Based on this, we're making a major change to how we build Facebook.

But some research and anecdotal evidence suggests that Facebook can make people feel isolated, inadequate or alienated as they experience a phenomenon known as "fear of missing out", or FOMO.

The research shows that when we use social media to connect with people we care about, it can be good for our well-being. Some news helps start conversations on important issues.

AP technology writer Michael Liedtke contributed from San Ramon, Calif.

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