Media companies have been waiting for the other shoe to drop since Facebook announced changes to its all-important newsfeed algorithm that (at least on paper) were designed to stop posts from businesses, brands and media from "crowding out" personalized content.
Now, barely six weeks after the changes were first announced, Facebook's decision to deprive publishers from a crucial stream of user traffic has claimed its first casualty: A four-year-old publisher called LittleThings.
The change, according to LittleThings' COO Gretchen Tibbits, had a "material" impact on the site's traffic, killing 75% of its organic reach, according to DigiDay.
LittleThings’ comScore traffic declined to 40 million this month from 58 million last May. The closure will leave the company's 100 employees without jobs.
Facebook CEO Mark Zuckerberg unveiled the changes in a blog post published early last month, claiming that Facebook's internal research had determined that its users are happier when their feeds are filled with personalized content - like photos from their neice's graduation - while news and paid advertising typically lead to feelings of malaise.
Of course, anybody who's been following the monthslong battle between Facebook and Democratic lawmakers over its "failure" to stop a Russian troll farm that has since been indicted by Special Counsel Robert Mueller from distributing $100,000 worth of paid political content on Facebook's platform.
Unfortunately for the media industry, the fallout from this decision has only just begun to be felt.
Facebook's algorithm change will probably do lasting harm to dozens - if not hundreds - of publishers who depend on the company's algorithm to drive traffic to their content. But LittleThings' aversion to taking outside money (the site was self-funded) meant there was little in the bank to tide the company over during a downturn. The site was in the middle of a pivot away from programmatic advertising toward more lucrative direct sales, as giant American consumer brands felt LittleThings' inspirational content would be an important counterpoint to the often dreary news cycle.
Because it will also de-prioritize paid ads, the decision is expected to harm the company's bottom line. Unsurprisingly, its shares tanked after Zuckerberg announced the changes.
LittleThings had other factors working against it. Unlike a lot of distributed media upstarts that chased audiences on platforms using VC money, LittleThings was self-funded, which meant there wasn’t a big cushion when things went south. It largely built its business on programmatic advertising, but then pivoted to more lucrative direct sales.
LittleThings’ inspirational stories were a safe haven for advertisers that were increasingly getting spooked by the contentious news climate, but there was a downside there, too. “The brand safety was a huge selling point for us, but the flip is, our audience is women over 30 in middle America, and they’re not sexy,” Tibbits said. The company made some inroads, getting buys from blue-chip advertisers including Procter & Gamble and eBay, but it wasn’t enough, and the first quarter of the year is typically slow for advertising.
Other publishers are looking to Google and Twitter to make up for what they’re losing from Facebook, but for LittleThings, there was nowhere else to go. LittleThings’ comScore traffic had declined to 40 million from 58 million last May, according to Tibbits.
"For our audience, there’s not another platform right now," she said. "There are 100 great, talented people who were here and doing content that resonated with an audience that’s just harder to find right now."
As LittleThings crumbles, other publishers are hoping Google and Twitter will help them compensate for Facebook's retrenchment.
But whether these strategies will ultimately pan out remains to be seen.
Though perhaps an even more important question would be: Is this also Putin's fault?
Comments
Trump’s Jewish Agenda
January 7, 2018
By CUFPa
Trump, the first US President with two Jewish children, beholden to the money power of the US establishment (i.e., Jewish money) that supported his presidential bid (or bought the presidency for him), is making the Israeli dream of stealing Jerusalem and the whole of Palestine a reality; especially since he owes Jewish investment banks hundreds of millions of dollars, which can be easily written off the books if certain conditions are met.
“I have determined that it is time to officially recognize Jerusalem as the capital of Israel,” Trump said.
In one fell swoop, Donald Trump overturned decades of international consensus and laws. He also ignored recorded history: Jerusalem was NEVERthe capital of even ancient Israel.
Furthermore, he constantly and nonchalantly overlooks the fact that Israel today is an inhumane, apartheid country that uses its carte blanche from the US to do as it pleases in the Middle East. It oppresses the Palestinians, treats them like caged animals, and spreads chaos in the region regardless of how it affects the peace of the world.
The reason is because the Jews control the Federal Reserve, the real center of power in the United States or the money power of the establishment (i.e., Jewish money). In turn, the Fed wags every other financial institution in America, and consequently ends up being the root cause of all of America’s economic ills.
Trump’s Jewish Entourage
Not even Trump, who supposedly wants to “make America great again,” dares mention the need to dismantle the Fed. Worse, he drools every time he talks about Apartheid Israel, not unlike every other American politician.
The anti-Christ spirit of hate thy neighbor, which revs up the engine of the state of Israel and that of its Prime Minister, seems to fire up Trump’s motor as well with his loathing of immigrants, especially of his Mexican neighbors. He and Netanyahu are two peas in a pod – both arrogant, haughty, and supercilious narcissists.
“Pride goes before destruction, a haughty spirit before a fall.” Proverbs 16:18
Here is a list of some of the known ancient Greek cities in (and near) Israel; Ecdippa, Seleucia, Ptolemais, Taricheia Arbela, Asochis, Sepphoris, Hippos, Dion, Sycaminum, Bucolon Polis, Itabyrium, Gadara, Abila, Dora, Comus, Gephrus, Crocodilion Polis, Caesarea, Straton's Tower, Narbata, Scythopolis, Pella, Samaria, Amathus, Ragaba, Gerasa, Apollonia, Sicima, Pegae, Joppa, Arimathea, Jamnia, Port of Jamnia, Lydda, Modiin, Aphaerema, Philadelphia, Birtha, Gazara, Beth Horon, Dok, Jericho, Samaga, Esbus, Medaba, Ladder of Tyre, Azotus, Port of Azotus, Accaron, Jerusalem, Ascalon, Anthedon, Gaza, Marissa, Beth Zur, Hebron, Adora, Engeddi.
The ancient Jewish cities in Israel are,....... well there aren't any. Not even one.
https://getpocket.com/a/read/2045808694
In reply to Trump’s Jewish Agenda… by NumbersUsa
Transcript of Trump's speech to AIPAC, March 22 2016.
In retrospect, you have to admit Trump is doing exactly what he promised his masters...
In reply to Trump’s Jewish Agenda… by NumbersUsa
Yea, I remember his masters spending 20 years putting together TPP and Paris Accord.
Umm, oops!
Fuck off paid trolls
In reply to Transcript of Trump's speech… by ThirdWorldDude
Hey there NumbersUsa, you're a trolling Turd, you know that don't you ?
In reply to Trump’s Jewish Agenda… by NumbersUsa
Your post is so wildly inappropriate to the topic that it reads like a cry for "help me, I'm so desperate for attention that I'm willing to all but publicly call myself a Nazi in order to get it!"
Given the news, such a loud and consistent cry for mental health intervention might not be ignored as easily as in the past.
In reply to Trump’s Jewish Agenda… by NumbersUsa
Adios MySpace
Zucker-squirrel...lol.
His most ironic creation: the facebook VPN. Now that is some funny shit right there.
In reply to Adios MySpace by Rex Andrus
What's a 'Facebook'?
Is that a book containing personal portraits?
In reply to Zucker-squirrel by BlackChicken
Well PS, it’s a place that fascism and totalitarianism go to hang out, while duping those that use it to believe it’s a transparent communication forum.
Zucker-squirrel sells the private information of his customers to those servants of darkness that can further the demise of freedom, privacy, and basic human liberty.
There’s more, but that’s all I can type without breaking something or stabbing my Zucker-squirrel voodoo-doll.
In reply to What's a 'Facebook'?… by Pool Shark
With Jews, you lose!
looking forward to 100%
"There are 100 great, talented people who were here and doing content that resonated with an audience that’s just harder to find right now."
"We're going to miss trying to siphon ad dollars to pay our cardboard box rents"
This company was "self-funded"........why? was it a religious site? using the collection plate to spread the word of the starman in the sky?
that head was made for kicking
The germans have a great word for that, "Backpfeifengesicht", and its perfect for Zuckerberg
In reply to that head was made for… by SmilinJoeFizzion
Use ad blockers, don't care.
Looking forward to the day that smile is wiped-off Zuckerkike's smug little face.
whats a facebook?
Facebook removes account of Buddhist Monk
Feb 27, 2018 WION
https://www.youtube.com/watch?v=TQjGpuyPOaw
Can't wait for facebook to die.
It's already bedridden and on life support.
In reply to Can't wait for facebook to… by Cluster_Frak
Zuckerberg 2020
Zuckerberg
bMay 14, 1984
dNovember 2, 2020
Zuckerberg 2020 alright.
In reply to Zuckerberg 2020 by Anunnaki
Take the shot.
damn I'll be so glad when that company goes bankrupt...
"Is this also Putin's fault?"
Love the humour Tylers.
How hard is it really to open altBook and give people a choice?
I'm not informed enough to know so i am asking.
It seems like it would be pretty easy to crowdsource and destroy the power of facebook and thus make him expendable to TPTB.
Those 100 people at "Little Things" will have to find "honest work" now.
That's the trouble with many of these "internet businesses". Many of their so-called "products" are just bullshit "feel good crap". Just another useless "service sector" business.
The whole friggin Interweb "ecosystem" can go pound sand for all I care.
OK not the whole thing, I loves me some "free" Google maps.
I am glad my business never relied on FaceBook for its livelihood. When the elephant rolls over, the ants get crushed.