Facebook shares drop after News Feed overhaul rolls out


Facebook CEO Mark Zuckerberg announced on Thursday that Facebook will overhaul how it displays content on users' News Feeds, changing the types of posts, photos, and videos that appear most often. That means posts like a friend asking for advice, recommendations for a trip or an article that prompts interaction, according to a post by Facebook's head of news feed, Adam Mosseri.

At the time he was talking about Russian interference and doubling investment in people to prevent it, but the language was also hinting at Thursday's announcement that gives additional weight being placed on friends and family posts over pages and businesses in news feeds.

As part of the change, News Feeds will feature fewer news articles and less marketing content and ads.

John Hegeman-the News Feed product manager said that this update would be giving more weight to the social interactions and relationships by ranking the posts in such order.

By cutting back on items that Facebook users tend to passively consume, the change could hurt news organizations and other businesses that rely on Facebook to share their content.

"While we are a dominant news publisher on Facebook, we also employ strategies for diverse social media referral so as not to be dependent on any one source", said Ron Waksman, vice president of digital and editorial standards and practices for Global News and Corus Radio.

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Zuckerberg expects the time people spend on Facebook will go down. Mr Akhil Karthik, who runs a social media campaign, said, "Facebook is making it hard for social media marketing".

Facebook's decision to refocus its news feed to show more posts from friendsand fewer posts from brands and publishers is a seismic shift with the potential to strike a major blow to publishers and businesses. He could name a professional journalist as a public editor, and give him or her an inside view of Facebook's media operations-and let them report on the company's impact on the media.

At no point did he mention that video "exploded" because that's the way the news feed algorithm was designed, or that Facebook partnered with media companies to produce exponentially more video content. Friends and family will be shown more. In fact, live videos on average get six times as many interactions as regular videos.

In September, the latest month for which figures are available, Facebook's total number of users was up 16 per cent over a year earlier to 2.07 billion. Instead, you're more likely to see posts from people you're connected to that will drive engagement through comments and discussion, not shares and likes. But there are other big steps he could take to show us he's honest about fixing Facebook.

A USA Today/Suffolk University poll published in October found that Americans believed by a two-to-one margin that Facebook should have done more to identify and reveal the Russian ads. By focusing on bringing people closer together-whether it's with family and friends, or around important moments in the world-we can help make sure that Facebook is time well spent.