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Facebook Inc. (FB) To Cripple Entrepreneurs On New Ad-Paid Requirement

Starting mid-January of next year Facebook Inc. (NASDAQ:FB) is poised to make it extremely hard for entrepreneurs to reach fans on their Facebook pages. The giant social network plans to filter out all unpaid promotional material as one of the ways of growing revenue from advertising campaigns on the platform.

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 According to Wall Street Journal, businesses that are fond of posting free marketing pitches as well as reusing content of existing ads will be the ones that will be heavily affected by the new guidelines. Facebook Inc. (NASDAQ:FB) confirmed the changes early November as the race of ad revenue heats up

The new changes will mostly affect small businesses that don’t have the financial capacity to pay for ads on social networks compared to big brands. Up to 80% of small companies reportedly rely on Facebook as their number one marketing tool on social platforms followed by LinkedIn Corp (NYSE:LNKD) and then Twitter Inc. (NYSE:TWTR). Facebook Inc. (NASDAQ:FB)’s Vice President for small business Dan Levy reiterates that the network has grown over the years to become a more effective marketing tool rather than a niche social solution thus the new changes.

The highlighted push for paid advertising by Facebook Inc. (NASDAQ:FB) is poised to aggravate the ongoing tense relationship between the network and small business over audience ownership. Facebook currently runs a campaign known as ‘Promoted posts’ that lets businesses pay as little as $5 to thousands of dollars to have posts viewed by mass audience across the globe.

Some small business have already accepted the new changes  as failure to pay for promotion could severely affect their business coverage in terms of audience. Another concern is a recent report by Forester Research that suggested, Facebook might not be as effective as many people might think adding that well-known brands are only able to reach 2% of their desired audience.

A number of entrepreneurs have already stated that they will monitor Facebook Inc. (NASDAQ:FB) in terms of marketing campaigns and compare its value to that of other advertising options as they seek to find the best business results.

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