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LA Times: Movie Studios Questioning the Value of Facebook


Dawn Chmielewski and Jessica Guynn of  The LA Times today posted an interesting article on the evolving relationship between Facebook and the film industry suggesting that “Hollywood’s friendship with Facebook is showing signs of strain.”  The article points out that while few at the studios are opening critical of the social networking behemoth, some film executives confide privately they are considering cutting their spending on Facebook ads. The article cites a number of reasons for the rift including changes that Facebook made in September to the algorithm that decides what users see in their News Feed, which has resulted in 72% of movies and network TV shows experiencing a drop in the number of people who saw new Facebook posts (according to BlitzMetrics).

The article also points out that simultaneously with the algorithm changes, Facebook began pushing paid ads in the New Feed, and the growth of a new generation of competing social media platforms such as Twitter, Tumblr and Pinterest is vying for studios’ marketing time and spending.

The takeaway: while Facebook continues to be an essential part of the marketing strategy for film studios (over 99% of all films released this year advertised on the social network according to Fred Leach, Facebook Inc.’s head of entertainment measurement, who was interviewed for the article), the relationship is far from secure as film marketing budgets are increasingly being cut and under scrutiny and new platforms emerge on the social media landscape.  Read more.

Photo by Flickr user pshab, used under Creative Commons license.