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Will Facebook start charging brands to promote themselves?

Video ads will play automatically but silently, going fullscreen and adding sound when you tap or click.
Source: Facebook
Video ads will play automatically but silently, going fullscreen and adding sound when you tap or click.

Want to reach people on Facebook with your business? You may soon have to pay up.

A source described as being "professionally familiar with Facebook's marketing strategy" told Valleywag that the social media giant is in the process of "slashing 'organic page reach' down to 1 or 2 percent."

In other words, a company that has amassed, say, 1 million "likes" would now only be able to reach somewhere between 10,000 to 20,000 followers with any given post or update. The expectation is that Facebook will start demanding money in order to increase that reach, a strategy which has already been revealed to certain advertising executives.

Valleywag has the rest of the story.

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  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

Re/code

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.

  • Co-CEO, Revere Digital; Co-Executive Editor, Re/code; and Co-Executive Producer, The Code Conference. Re/code is part of the CNBC network.