WSJ – New Facebook Rules Will Sting Entrepreneurs and Monetization of Voter Reach in Politics

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New Facebook Rules Will Sting Entrepreneurs & Monetization of Voter Reach in Politics

Two recent articles in the Wall Street Journal and the Washington Post highlight how Facebook is increasingly seeking to monetize its massive social network.

WSJ – New Facebook Rules Will Sting Entrepreneurs

Very insightful WSJ article – ‘New Facebook Rules Will Sting Entrepreneurs’ highlights how Facebook is increasingly moving to monetize its vast social network.  While entrepreneurs for years have relied to grow their business through organic reach, recent algorithm changes are in pushing businesses to pay to advertise to promote their posts.

Journalists Angus Loten, Adam Janofsky, and Reed Albergotti highlight – “Businesses that post free marketing pitches or reuse content from existing ads will suffer “a significant decrease in distribution,” Facebook warned in a post earlier this month announcing the coming change.”

Facebook, like other massive social networks, is both the ‘developer and the landlord’.  As they choose, they can annex ‘their property’ and begin  to charge ‘rent’ to their tenants.  As users have provided their information and enabled the company to track their behaviors, Facebook has amassed mountains of data – Big Data – that can be increasingly be mined.  Predictive analytics enables the company to increasingly monetize its network via algorithm updates.

Whether unpaid or paid, the power of Facebook’s network to reach customers and prospects has few rivals.

Monetization of Voter Reach in Politics

In ‘How Facebook Plans to Become One of the Most Powerful Tools in Politics‘, the Washington Post  reports that Facebook has “shifted its toolset to let campaigns target extremely specific audiences with very specific messages, for prices somewhat north of zero dollars. The end goal for the company seems clear: Replace, as much as possible, expensive, blanketed television advertising with much more immediate, much more specific ads appearing in users’ feeds — and then cash a whole lot of checks”.

Philip Bump, journalist, highlights an excellent mini-case study as to how Senator Cornyn’s (Republican, Texas) campaign “used an external firm to match its voter list with Facebook users before the not-very-contested Republican primary against Rep. Steve Stockman. That system allowed them to contact hundreds of thousands of voters for under 20 cents a piece, much more cheaply than by mail (which costs at least 50 cents a piece, at the cheapest)”.

Notably, Facebook has partnered with Acxiom, a marketing technology and service company, to develop a mechanism that allows campaign to cross reference postal lists with Facebook accounts.  Online and offline data-sets can now be merged, providing campaigns with a tremendous amount of behavioral data on their targeted voter-set.   This is the Holy Grail of political advertising, where exact 1 to 1 messaging is developed to tell a specific voter – exactly…what…they…want…to…hear.

To read ‘How Facebook Plans to Become One of the Most Powerful Tools in Politics’, on the Washington Post web site, click here.

To read ‘New Facebook Rules Will Sting Entrepreneurs’ on on the Wall Street Journal web site, click here.

By Nick Mavrick

You can find Nick Mavrick on Google+

Intelligent Response specializes in operationalizing Predictive Analytics, Market Research, Quantitative Marketing and Digital Advocacy in Washington DC.

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