Oz business firms ‘held to ransom’ by Facebook

Last Updated: Tuesday, November 13, 2012 - 14:26

London: Business owners in Australia have accused Facebook of holding them to ransom by asking them to pay to reach their followers on the social networking site.

Last month Facebook began pushing its paid promoted posts service, in which users pay up to 400 dollars to have each status update appear prominently in their audience's newsfeed.

Chris Cassella, managing director of Science Alert, said Facebook informed him recently that unless he signed up for the service, there was only a very small chance his posts would reach all of his two million fans.

“Facebook said in their marketing press release that there was a 15 percent chance my audience would see my posts show up in their newsfeed. It's ugly. It is an ugly business tactic,” News.com.au quoted Cassella, as saying.

The report also quoted Melbourne woman Hayley Deerfield, who runs vintage fashion business Deerfield Vintage via Facebook, as saying that she had to increase her marketing budget from 100 to 350 dollars a month to ensure her posts got through to her 5200 followers.

“In most cases, only 10 percent of my followers actually see the post. Choosing to promote a post is extremely expensive when I'm making two to three posts a day. This is totally unaffordable,” she added.


First Published: Tuesday, November 13, 2012 - 14:26
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