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Though pronounced "miss-TAIR-oh", Mistero is actually named after its founder, Mister O - or "Mr. O". Our logo hides this subtly. If you look closely, you'll see the crown of the hat is the letter "m", the brim of the hat is the "r", and his face is the O.

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Tuesday
Apr152014

How the Facebook News Feed Algorithm Works

There was a great article we came across at The Federalist that claims to have cracked the code on how the news feed algorithm works. So naturally, we wanted to share this with you, so you can learn how to gain more exposure without throwing all your money away or burning bills at both ends.

In summary, their findings are as follows:
  • The algorithm rewards the purchase of Facebook Ads
  • There are (approx.) five variables taken into consideration:
    • Total "likes"
    • Daily paid reach
    • Site page views from Facebook
    • Weekend vs weekday
    • Posts per day
  • Facebook restricts # of fans who see your posts (ie "Daily Organic Reach")
  • Formula: Daily Organic Reach = -22 + (Total Likes x 5.399%) + (Daily Paid Reach x 0.327%) + (Page Views x 0.416%) + (Weekend [1 if yes, 0 if no] x -194.4) + (Posts Per Day x 81.08)
    • The formula explained:
      • 5.4% of your Facebook fans see your Facebook posts in their news feeds on any given day
      • Ad purchases increase your reach (an extra 33 people for every 10,000 reached by paid reach)
      • Popularity of a post increases reach (an extra 42 people per 10,000 page views)
      • Weekend posts don't get much exposure (i.e. can reduce Daily Organic Reach by 194 people)
      • Post frequency has a strong influence as well (an extra 81 people per daily post)
  • (Disclaimer: different factors may kick in once a site reaches different level of likes.)
  • What to learn from this:
    • How to allocate your budget and know when to post
    • Favours ad reach over total money spent (i.e. keep cost constant to maximize ad impressions)
      • In other words: abandon news feed ads to increase likes and go with right-ad likes instead
    • "Cost Per Like" (CPL) is identical for either method
    • "Cost Per Impression" (CPM) for right column ads less expensive than news feed ads
      • $100 ad on right column instead of news feeds increases organic reach by 1.8%
    • Sponsored posts are a HUGE waste of money. The cost vs the payoff will not be of benefit to you.
    • A dollar spent on Facebook MAY not be worth as much as a dollar spent somewhere else (but it depends on what business you're in - something like Upworthy, vs selling products will benefit differently from Facebook)

Hope that helps! We hope The Federalist's hard work and number crunching pays off for you if/when you choose to market on Facebook!

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