Why Publishers Should Not Trust Facebook Inc (FB)

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Facebook Inc (NASDAQ:FB) is gearing up to host media content from famous websites on its own platform. An article on QZ mentioned a recent survey which shows that millions of people around the world take Facebook Inc (NASDAQ:FB) as a major news source. The percentage of Facebook Inc (NASDAQ:FB) users who use the social platform for news go up to 70%. In the UK, around 44% people actually click the news links they see in their Facebook Inc (NASDAQ:FB) news feeds. This is a huge opportunity for Facebook Inc (NASDAQ:FB) and its media partners who will opt-in for the content hosting service.

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The source said that according to a recent research which was done for web traffic on major websites for one month, Facebook Inc (NASDAQ:FB) dwarfed every other social platform with a huge margin. More than 25% of the social traffic to major websites come from Facebook. Twitter has only 0.8% share in this part. Most of the websites rely on Facebook Inc (NASDAQ:FB) for 70% of their traffic. The legacy traffic sources like Google and Bing are being relied upon for only 10% of the traffic by the famous, funny news websites like Buzzfeed, ViralNova.

Facebook Cannot Be Trusted

But the article says that Facebook Inc (NASDAQ:FB) cannot be trusted by the publishers completely and they should not put all eggs in one basket. Facebook Inc (NASDAQ:FB) users specific algorithms to target traffic on its users. If a publisher pays Facebook to host content, what if the target audience don’t get to see the content because of the algorithms. Facebook Inc (NASDAQ:FB) will also need to devise a complete refresh in its algorithms if its deal with major media publishers go through. The source said that Facebook Inc (NASDAQ:FB) is an ‘unpredictable spigot’, whose flow can change anytime according to the circumstances.

Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).

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