Presentation given at Sprinklr's Social@Scale event in Costa Mesa, CA on August 11, 2014. It looks at the impact of reduced organic reach in social media and the rise of paid ads to replace a community driven content strategy.

1. © 2014 Sprinklr. All rights reserved.
Decreasing Organic Reach and Its Impact on Community
Chris Baccus, Executive Director Digital at GOLIN

2. © 2014 Sprinklr. All rights reserved.
Organic reach has been declining for some
time and reach a catastrophic level for
Facebook pages above 500k Fans
Facebook’s Declining Organic Reach
“Facebook Zero” report by Social@Ogilvy. February 2014

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“Increasingly Facebook is saying that you should assume
a day will come when the organic reach is zero.”
“Brands' Organic Facebook Reach Has Crashed Since October: Study.” Advertising Age. March 6, 2014.

4. © 2014 Sprinklr. All rights reserved.

5. © 2014 Sprinklr. All rights reserved.
The Shift
Where does it come from?

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What Will Cost To Reach My Fans?
For a Fan Page with 2 Million fans = $2,926 per post
Independent Study Examining Several Campaigns Across Industries. August 2014.

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Organic Posts Perform 177% Better Than Paid Facebook Posts
Paid Content and Engagement
People annoyed by your
ad in their newsfeed
People who may be interested,
but most ignore the post
Your Page’s Facebook Fans
Independent Study Examining Several Campaigns Across Industries. August 2014.
WHY?
Paid Expands Reach
to New Audiences
that are More Likely
to Not Care About
Your Content

8. © 2014 Sprinklr. All rights reserved.
Will Every Brand Post Will Become an Ad?

9. © 2014 Sprinklr. All rights reserved.
If media teams are expected to move dollars from other online advertising to social
media ads, they must expect a clear Return on Investment (ROI) that is measured in
conversion rate and other similar measures.
Clear Calls-To-Action Over Soft Community Friendly Messages

10. © 2014 Sprinklr. All rights reserved.
“A few years ago, the company was telling brands
to increase the number of people following their
pages. Now it says fans are largely irrelevant.”
New York Times
“How Facebook Sold You Krill Oil” Aug. 2, 2014

11. © 2014 Sprinklr. All rights reserved.
TEND YOUR
OWN GARDEN

12. © 2014 Sprinklr. All rights reserved.
ü Develop a Community Based Website or Blog to Connect Audiences with Your Content
ü Focus on Building Email Lists and Improving Your Email Marketing
ü Use Social Channels to Lead People to Connect With Your Owned Destinations
ü Enjoy Organic Promotion on Social Sites that Still Offer It
You Need to Own Your Community

13. © 2014 Sprinklr. All rights reserved.
© 2014 Sprinklr. All rights reserved.
thank you.
thank you.