"Brands feel betrayed by Facebook......." ~Mark Cuban
Adam Rifkin stashed this in @mcuban
Mark Cuban recently tweeted about Facebook price gouging, as reported in ReadWriteWeb: Facebook sponsored posts are driving away brands.
Mark Cuban complains that Facebook wants him to pay $3000 for a single post to reach a million Mavs fans:
FB is blowing it? This is the first step. The Mavs are considering moving to Tumblr or to new MySpace as primary site.
Now Cuban tells me he's doing more than considering a move - he's doing it. And not just with the Mavs but with the 70 or so companies in which he has invested.
"We are moving far more aggressively into Twitter and reducing any and all emphasis on Facebook," Cuban says, via email. "We won't abandon Facebook, we will still use it, but our priority is to add followers that our brands can reach on non-Facebook platforms first."
Facebook claims they're charging money to fight spam. In September Facebook changed the algorithm that controls which messages get through to which members. The result is that some brands a sharp dropoff in the reach of their posts - as much as 50% in some cases.
PageLever piles on: "Mark Cuban, you can afford $0.003 per fan to increase Mavs home game attendance. C’mon son!"
I do agree with PageLever's point. It's not like Twitter, Tumblr, Instagram, or MySpace are all that great for brands, either.
Mark Cuban explains why brands feel betrayed by Facebook.
"Facebook has never allowed 100% reach. I think the disconnect is that not everyone realized that they didnt allow 100% reach. I bet if you asked anyone who has subscribers if their posts reached 100% of their subscribers, they would say yes unless they have seen the dollar box for promoted posts show up.
"I think the same applies to brands as well. Remember most brands don't have social media departments. They rely on common sense. If someone likes your brand, it seems like common sense to me that you can expect your posts to reach 100% of those that like your brand. Doesn't it to you?"
Mark says the right thing for Facebook to do is charge an upfront fee:
"The right price is to charge an upfront fee for brands. In the current system there is complete uncertainty on the cost. And even worse, at least for our size brands, you have to deal with the pricing for each posting, which is a time waster.
"I'm just suggesting that a single upfront fee or a monthly fee where there is certainty of cost would allow brands to focus on bringing in consumers to like the brands knowing that they can always reach everyone that likes them. I don't know what that number should be.
"And let me add, I'm not trying to come off as some Facebook expert. I'm not. I have a bunch of little companies via SharkTank and other investments that use Facebook in the normal course of business. They shouldn't have go to great lengths to figure out the nuances of Facebook audience reach. That complexity, IMHO, will come back to haunt Facebook."
I guess "it's complicated" doesn't just apply to Facebook relationship statuses.