Hollywood Studios Thinking Twice About Facebook?

By David Cohen 

This may not be the type of Hollywood ending Facebook had in mind: Some of the major movie studios are reconsidering their marketing efforts on the social network, according to the Los Angeles Times.

The Times reported that studios were affected by the recent changes to Facebook’s algorithm, and negative comments on their posts are resulting in less news feed exposure.

Facebook marketing outfit BlitzMetrics told the newspaper 72 percent of movies and network TV shows saw the number of people who saw new Facebook posts drop after the social network launched its new algorithm, and 23 percent of the larger studios’ pages saw their engaged users fall, with the number of Facebook users seeing their updates plunging by 45 percent.

BlitzMetrics Founder Dennis Yu told the Times:

The days of free traffic are over. Facebook has been trying to educate marketers on how to be social — to post the most engaging content — so as not to be penalized by their algorithms.

According to the Times, much of the grousing about Facebook is occurring in the background, with the few studios willing to comment publicly expressing support for the social network, including Sony Pictures Entertainment President of Worldwide Digital Marketing Dwight Caines, who told the newspaper:

Facebook continues to be an important advertising partner. They are on every campaign we do today.

However, movie marketing consultant Jim Gallagher, who oversaw marketing for Walt Disney Studios, told the Times:

For people who are actually looking at the research and are looking for return on investment, for metrics that indicate specifically what Facebook’s role is in the movie marketing equation, the jury’s still out.

Facebook Head of Entertainment Measurement Fred Leach told the newspaper the social network is working more closely than ever with studios to help them target the right audiences for their films, including giving them more data on the connection between ads and movie ticket sales and more tools to track the effectiveness of their Facebook campaigns.

Readers: How do you see this Hollywood plot evolving?

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