1. Gaining an Edge:
The Brand Impact of Facebook’s
EdgeRank Algorithm Change
Authors: Chris Copeland, CEO, GroupM Next
Nate Lee, Ph.D., Analytics Manager, GroupM Next
Brandon Fischer, Partner, Director, Predictive Insights, GroupM Next
November 2012

2. A lot has been made of the economics of Facebook in the wake of this summer’s IPO. At times it has
appeared that the only thing more difficult than keeping 1 billion users happy is keeping investors
and the Street satisfied. This is why every move made by the social network is scrutinized, not only
for impact, but also for any alternate meaning to the business’s long-term health.
One such move that has received much speculation is the shift in organic post reach for brands to
their follower base. After encouraging brands to amass followers at scale, Facebook implemented
significant changes to its EdgeRank algorithm earlier this fall.
At the core of the change was a stated desire by the social network to improve consumer
experience, acknowledging the impact to brands would be that the reach of an individual post
would diminish, but that post engagement should improve. The questions raised from this move
have been about the overall impact of these two implications and the alternative options available
to ensure continued success for brands in a channel that has grown in importance, owing to the
large fan bases established to date.
Analyses conducted across the Facebook pages of 25 brands by the GroupM Next Predictive
Insights team in conjunction with M80, a GroupM-owned social media and community activation
agency, reveals results that are consistent with the original expectations set by Facebook, yet with
underlying challenges and potential opportunities.
Taking A Close Look At The Impact Of Changes
To The EdgeRank Algorithm
Consistent with Facebook-accepted norms, prior to the EdgeRank algorithm change, the brands
studied had an average reach of roughly 16%. Following the change, the percentage drops by
38%. The upside for brands is that with a decrease in exposure comes increased engagement
by users their posts reach, with
Percent Of Facebook Users That See An Organic Post brands experiencing a 96% lift in
By A Brand They Like
engagement with individual posts
Organic Reach of Facebook Posts
(Before & After EdgeRank Algorithm Change)
18% following the change.
16% 15.56%
14%
12%
10%
9.62% 38%
8%
6% Drop
4%
2%
0%
Before After
Percent of Users That See Organic Post
©2012 GroupM Next
Average Post Engagement Through Stories Gaining an Edge: The Brand Impact
of Facebook’s EdgeRank Algorithm Change
(Before & After Facebook EdgeRank Algorithm Change)
November 2012
essions
1
ment
2.0%

3. ©2012 GroupM Next Percent Of Facebook Users That See An Organic Post
By A Brand They Like
Organic Reach of Facebook Posts
On the surface there appears
(Before & After EdgeRank Algorithm Change)
Average Post Engagement Through Stories
18%
little amiss with the promise by
16% 15.56%
(Before & After Facebook EdgeRank Algorithm Change)
14% Facebook and the subsequent
12%
Percentage of Post Impressions
That Result in Engagement
10%
9.62% 38%
delivery — that is until you
2.0%
1.49%
8%
6% Drop
examine the implications of scale
1.5% 4%
2% that come with operating on a site
1.0% 0.76% 0%
Before
96% Afterhaving more than a billion users
0.5% Lift
Percent of Users That See Organic Post
and brands with millions of fans.
0.0%
Before After
©2012 GroupM Next When put into this context, the
Average Post Engagement dramatic lift in engagement simply
©2012 GroupM Next Average Post Engagement Throughoffset the decline a brand
cannot Stories
(Before & After Facebook EdgeRank Algorithm Change) exposure.
experiences in post
Percentage of Post Impressions
Percent Change In Reach Of Organic Post
That Result in Engagement
For brands, this new reality presents a challenge. Obviously there are paid solutions now available on
By Post Type On 2.0%
Facebook
1.49%
Facebook, which many experts haveAlgorithm Change) motivation behind this shift more so than improved
(After EdgeRank suggested is the
1.5%
0.76%
30%
96%
Percent Change in Reach
consumer experience. The data studied by GroupM Next suggests that, as a result of the change, brands
20% 1.0%
10%
now have developing insights which can help to further shape their organic strategy without becoming
0% 0.5% Lift
-10%
solely paid dependent.
-20%
0.0%
-30%
Before After
-40%
Average Post Engagement
-50%
The biggest loss-60% brands following the EdgeRank change, however, is around reach. In studying
for
-70% ©2012 GroupM Next
brands’ post types of photos, status updates, links, videos, and shares, it was determined that not all
-80%
Status
types have a negative Photo
Update
return%compared to reach
Visibility Change -40.46% 19.48% Percent Change In Reach
-68.19% -31.92% -59.06% Of Organic Post
By Post Type On Facebook
before the change. While
©2012 GroupM Next (After EdgeRank Algorithm Change)
most types see declines, 30%
Percent Change in Reach
20%
reach of status updates 10%
0%
Percent Change In Engagement Through Stories
increases, signifying one -10%
By Post Type On Facebook -20%
option brands now have to
(After Facebook EdgeRank Algorithm Change)
-30%
-40%
increase reach to users.
150% -50%
in Engagement (Stories)
-60%
Percentage Change
100%
-70%
50% -80%
Status
Photo
0% Update
% Visibility Change -40.46% 19.48% -68.19% -31.92% -59.06%
-50%
-100%
©2012 GroupM Next
-150%
Status
Photo
Update
% Engagement Change 73.52% 56.76% Percent Change In Engagement
101.20% 57.10% -124.98% Through Stories
By Post Type On Facebook
©2012 GroupM Next (After Facebook EdgeRank Algorithm Change)
150%
ngagement (Stories)
ercentage Change
Gaining an Edge: The Brand Impact 100%
Percent Change In Engagement Through Consumption
of Facebook’s EdgeRank Algorithm Change
By Post Type On Facebook50% November 2012
(After Facebook EdgeRank Algorithm Change)
0%
200%
2
tion)
-50%

4. By Post©2012 GroupM Next
Type On Facebook
(After EdgeRank Algorithm Change)
30%
Percent Change in Reach
20%
For brands to further maximize the potential of organic reach now requires better engagement by
10% Percent Change In Reach Of Organic Post
0%
users through stories and broader consumption metrics. Stories are active forms of participation
By Post Type On Facebook
-10%
-20% (After EdgeRank Algorithm Change)
that take place whenever a user likes, comments or shares a brand’s content. Consumption includes
-30% 30%
Percent Change in Reach
more passive user activities and occurs whenever a user views a video or photo, or clicks on a
-40% 20%
-50% 10%
page post. -60% 0%
-70% -10%
-80% -20%
Status
When examining what connectsUpdateusers at -30%
Photo with a story level, brands can take heart in having multiple
-40%
options Visibility Change -40.46% 19.48% -50% -31.92%
% for engagement success in the new Facebook -59.06%
-68.19% environment. Most types of posts (i.e.
-60%
photos, status updates, links and videos) produce more stories per impression after the change
-70%
©2012 GroupM Next -80%
Status
to the Facebook algorithm. Shares, on the other hand, decline in engagement per impression.
Photo
Update
% Visibility Change -40.46% 19.48% The -31.92%
-68.19% latter result means
-59.06%
Percent Change In Engagement Through Stories that if brands are looking
By Post©2012 GroupM Next
Type On Facebook
(After Facebook EdgeRank Algorithm Change) for higher levels of
150% engagement, they must
in Engagement (Stories)
Percentage Change
100% Percent Change In Engagement Through Stories types of
consider the
50% By Post Type On Facebook
posts they create because
(After Facebook EdgeRank Algorithm Change)
0% some posts do not
150%
in Engagement (Stories)
-50%
generate the engagement
Percentage Change
100%
-100%
50% that others do.
-150%
Status 0%
Photo
Update
-50%
% Engagement Change 73.52% 56.76% 101.20% 57.10% -124.98%
-100%
©2012 GroupM Next -150%
Status
Photo
Update
Also noteworthy for brands is that, before the algorithm change, roughly 2.7% of a post’s impressions
% Engagement Change 73.52% 56.76% 101.20% 57.10% -124.98%
Percent Change In Engagement Through Consumption
resulted in some form of user consumption, while after this change, nearly 4.3% of impressions
By Post Type On Facebook
result in these forms of engagement. Algorithm Change) in activity corresponds to a 59% increase
(After Facebook EdgeRank This difference
©2012 GroupM Next
in the probability 200%
a post
in Engagement (Consumption)
100%
is engaged with by some Percent Change In Engagement Through Consumption
Percentage Change
0% By Post Type On Facebook
act of consumption. The (After Facebook EdgeRank Algorithm Change)
-100%
type of posts users will 200%
in Engagement (Consumption)
-200%
consume in the new envi- 100%
Percentage Change
-300%
ronment is illustrated in 0%
-400%
Status -100%
the accompanying chart Photo
Update
-200%
(right). Engagement Change
% 34.93% -13.90% 129.77% 44.03% -291.81%
-300%
©2012 GroupM Next -400%
Status
Photo
Update
% Engagement Change 34.93% -13.90% 129.77% 44.03% -291.81%
Effect Engaging Material Has On
Improving Organic Reach
©2012 GroupM Next
(Before & After Facebook EdgeRank
Algorithm Change) Gaining an Edge: The Brand Impact
80% of Facebook’s EdgeRank Algorithm Change
71.43% Effect Engaging Material Has On November 2012
70%
ging Post
Improving Organic Reach
Reach
60%
(Before & After Facebook EdgeRank 3
50% Algorithm Change)

5. (After Facebook EdgeRank Algorithm Change)
150%
in Engagement (Stories)
Percentage Change
100%
The Truth About Engagement Post Algorithm Change
50%
While advertisers now see more forms of engagement per impression of their post, these same
0%
advertisers are also seeing fewer total impressions. Taken together, these trends mean that
-50%
advertisers should not expect an increase in the aggregate volume of engagement of their posts on
-100%
Facebook. This result means that brands are not gaining additional organic engagement as a result
-150%
Status
of the change and are only losing organic reach. Photo
Update
% Engagement Change 73.52% 56.76% 101.20% 57.10% -1
The implications, however, are not all negative. Based on the engagement data presented in this
©2012 GroupM Next
analysis, the EdgeRank change means that the material brands post to Facebook is being better
targeted by the network toward users with a high brand affinity. This is due to the fact that the
Percent Change In Engagement Through Consumption
EdgeRank algorithm (in part) makes posts more visible if the user is more engaged with a brand’s
By Post Type On Facebook
Facebook page. In the new Facebook environment, when an advertiserFacebook a post on their Change)
(After makes EdgeRank Algorithm
Facebook brand page, only serious fans will see it organically. 200%
in Engagement (Consumption)
100%
Percentage Change
Having the benefit of these insights, one myth worth busting is that0% “engaging content.”
of
A common refrain has been that the secret to real organic success would-100%
be found through engaging
content. However, the data examined for this analysis shows that since-200%changes to EdgeRank,
the
-300%
engaging content is less effective at generating organic reach. Engaging content still matters but,
surprisingly, not as much as it used to. This is likely due to the fact -400% the small audience of
that Status
Photo
Update
fans reached is more likely to be predisposed to engagement, regardless of quality, and therefore
% Engagement Change 34.93% -13.90% 129.77% 44.03% -2
individual post quality no longer requires as high a standard.
©2012 GroupM Next
Where Brands Go From Here
Effect Engaging Material Has On
In The New Facebook Environment Improving Organic Reach
A lot remains unknown with Facebook and the (Before & After Facebook EdgeRank
Algorithm Change)
EdgeRank algorithm. Brands must determine the
80%
71.43%
proper cadence of messaging and post type based 70%
Effect of Engaging Post
on Organic Reach
on similar models calibrated to their specific 60%
50%
business. Brands must also determine what role 40%
paid advertising should play and which posts it 30% 21.43%
20%
should support. While paid support remains a
10%
linchpin of the overall Facebook strategy, brands 0%
Before After
need not expect it to be the only lever capable of
Effect of Engagement on Reach
bridging the gap in performance created by these
©2012 GroupM Next
changes.
Projected Impact Of Optimized Posting Strategy
For Brands On Facebook
of Fans Exposed to Post
18%
16%
14% Gaining an Edge: The Brand Impact
12%Facebook’s EdgeRank Algorithm Change
of
10% November 2012
8%
4
28%
6% Increase
4%

6. on Organic
Effect of Enga
40%
30% 21.43%
20%
When studying the average set of posts by the brands before and after the Facebook algorithm
10%
change, we see that opportunities exist for improved reach. If the administrators of these pages are
0%
Before After
empowered with the insights derived in this study, the brands analyzed could increase their reach
Effect of Engagement on Reach
by 28% through strategic application.
©2012 GroupM Next
The changes made by Facebook
Projected Impact Of Optimized Posting Strategy
have been true to their stated
For Brands On Facebook
intent, but for advertisers that’s not
Percent of Fans Exposed to Post
18%
16%
entirely a good thing. What brands
14%
12% can do now in the new Facebook
10%
8% 28% environment, and in light of deeper
6% Increase insights made possible as a result
4%
2% of the EdgeRank change, is better
0%
Before After Optimized understand the impact post types
Percent of Users That See Organic Post have and marry that data with a
Projected Percent of Users that See A Brand’s Post After Optimization
publishing schedule and content
©2012 GroupM Next
creation plan. By doing so brands
can overcome some, if not all, of the loss in reach while enjoying increased engagement and using
paid advertising as a supplement – rather than a full replacement.
Gaining an Edge: The Brand Impact
of Facebook’s EdgeRank Algorithm Change
November 2012
5

7. GroupM Next is the forward-looking, innovation unit of GroupM, the world’s largest global media investment management group
that is the parent company to WPP media service agencies Maxus, MEC, MediaCom and Mindshare, as well as Catalyst Online
and Xaxis. Together with GroupM agencies, GroupM Next focuses on the curation and application of insight-focused solutions
across online, social, mobile and addressable channels. Through thought leadership, technology, research and education,
GroupM Next delivers data-driven, actionable insights and a clear path to action to help GroupM agencies and their clients
harness the right opportunities made possible in the digital technology and new media industry environments with speed and
relevance. Access our work and discover our perspective at www.groupmnext.com.
Contact us with questions or comments: cindy.spellman@groupm.com
GroupM Next
111 Westport Plaza
Suite 350
Saint Louis, MO 63146
A WPP Company www.groupmnext.com