How does the change in Facebook's algorithm affect the way brands use Facebook?

I am going to be a bit biased towards Facebook here and it's not because i am a social media marketer but I genuinely feel that Facebook has no other option! The amount of content that Facebook has to deal with warrants it to show users only 5 % - 10 % of content from a particular source. ( let's say a page in this case ) 1. What do you think will happen - Personally I feel that it's only going to get worse. Content reach will suffer because of competition and because Facebook will look to monetize News feed content more and more    2. Will big & known brands stop using Facebook and focus on other social platforms like Twitter? - I don't think it's brands who call the shots on social - it's the people. As long as people stay on a particular social platform, brands will follow 3. Will they pay for sponsored posts?- Yes. Do they have a choice? 4. Will Facebook make adaptations to the algorithm? - Yes. Take a look at Google and how dynamic their algorithm is. With the increase in competition for news feed content and brands trying to manipulate getting their content on the news feed of people, I will not be surprised if there are penguin and panda updates for Edge Rank :P

Content, brands are adjusting to this change by thinking like publishers andcreating more regular life enhancing interest based social content.

I completely agree with Mubhasir Umani here! "Brands will continue to do what is best for them on social media" This might as well mean that spending money on social media would no more be a luxury. In fact, the brands I've worked for are willing enough to pay a few grands to keep the reach coming.

Facebook changed the algorithm to make more revenue with sponsored posts. Short-term people will complain, mid- to long-term Facebook will make more money because it's just too important.

It's simple really. And this is what I preach to my clients. Give your followers creative and engaging NON-PRODUCT related content and build your fan base. People don't want to be blasted with marketing messages, especially from brands that don't have their trust yet. People complain about Facebook reach all day - but brands should only be an outlet for entertainment and connection. After you've gained their trust you can creatively talk about your products and services. Check out Coco Chanel's social strategy - http://blog.newscred.com/article/content-marketing-spotlight-chanels-brand-ubiquity-narrative-storytelling/9088fabb3d47f256dc8879bf6cbc106f?utm_source=newsletter&utm_medium=email&utm_content=original&utm_campaign=Chanels-Ubiquity&mkt_tok=3RkMMJWWfF9wsRons6zKZKXonjHpfsX66uUkXqK0lMI%2F0ER3fOvrPUfGjI4DSsdhI%2BSLDwEYGJlv6SgFT7jAMaZkw7gJWBk%3D

Social Media is wholesome. It is never about one single platform. For many brands, if Facebook works, for some Facebook is just a support medium. So technically brands will continue to do what is best for them on social media and not specifically on Facebook. As for what may happen, is that brands will realize, the ones that are losing out that is...the content is the key. Engaging and interesting content will always reach out to more people according to Facebook Algorithm and that will be the struggle among brands as to who can do best. The ones who are able to do it, will be the survivors. Others may pull out of Facebook due to lack of results.

Personally as a Community Manager, I am less than thrilled with Facebook's new algorithm changes. IMHO, I feel they are increasingly pushing changes that encourage brands to spend more money to increase visibility. I might be mistaken ofcourse, but thats just my opinion.

"algorithm"? It's just business, you see the stock prices lately? It's PURE about the traffic for "Facebook" and to the advertisers, if you can't make it perform? It's your own damn fault. Billion views and can't convert to cover your ad listing...bounce. Crash your sites by one click and you can't even handle or convert that.. The "companies" with "little blue check marks", they pay!

Maybe Facebook is the next Enron? They are writing awfully big checks on investments which they hope will pay dividends down the road. To big to fail? No matter what happens, there's one thing i'm certain of. Google+ will still be standing (and probably smiling if Facebook gets #MySpaced).