Facebook News Feed update focuses on local news


To sum up the recent changes to News Feed - it plays right into radio's local strength: more friends, more conversation, more local news + content. Shares fell about 4% after the market closed Wednesday.

Victor Anthony, an analyst with Aegis Capital Corp., said he does not expect the News Feed changes to significantly reduce Facebook's revenue.

Then there's are the billion-plus Messenger MAUs who have yet to be monetized, and a billion more WhatsApp users who are in the early stages of generating revenue.

In addition to prioritizing local news, we are also testing a dedicated section on Facebook that connects people to news and information in their community, called Today In.

Zuckerberg said that people spent "roughly 50 million hours" per day less on Facebook last quarter.

"I think that the reduction of 50 million hours per day is spooking investors".

As for Facebook's new aversion to those posts that plead "please share this", in many instances that activity is considered more impersonal and robotic than genuine and organic.

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Facebook's response to Russia's spreading fake news on its site has spiralled into a full review of the social network's role in society. We are testing this in six United States cities and plan to expand in the coming months. Facebook has told federal election officials it is open to greater oversight of its political ads, but has not explicitly backed the proposed legislation.

Plans to shake up the News Feed, Facebook's centerpiece product, to prioritize posts from friends and tamp down sensational media threaten to cut customer engagement, Zuckerberg has warned. But such changes come at a cost.

In his announcement, Facebook CEO Mark Zuckerberg, informed users that in the coming weeks and months they will see less public content from businesses, brands and SMEs.

By promoting local news stories, Facebook will benefit regional publishers that have struggled to reach audiences in the "News Feed". Without the adjustment, Facebook would have earned $2.21, topping consensus of $1.94.

Facebook said it ended the quarter with 2.13 billion monthly active users, up 14% from the year-ago period.

The company also beat revenue expectations for the quarter ending December 31: Facebook generated $12.97 billion revenue during the holiday quarter, compared to $8.8 billion during the same quarter in 2016. The decision to acquire Instagram for $1 billion may not have sat well with some at the time, but it will generate $7 billion in revenue this year, according to one estimate.

We've worked closely with local publishers through the Facebook Journalism Project over the previous year, visiting newsrooms around the world to provide training and support for journalists, as well as building products that work for their publications and readers.