Sean Davis does the analysis on how Facebook‘s internal process works to determine who gets to see what in their newsfeeds. This was for an organization’s page, so the analysis may not be the same for personal Facebook pages, but the bottom line is that the money you may spend for ads is worth it, but you’re wasting your money with promoted posts:
If you manage your company’s Facebook page and have ever wondered how the Facebook news feed algorithm decides how many of your fans will see your content, then wonder no more. We’ve cracked the code (or we’ve at least cracked the code as it pertains to The Federalist’s Facebook page). And yes, for those of you who don’t feel like reading through the entire post or grappling with the math and statistics below, the Facebook news feed algorithm absolutely rewards the purchase of Facebook ads.
According to our analysis, five simple variables explain the vast majority (nearly 75 percent) of how the Facebook news feed algorithm works: total likes, daily paid reach, site page views from Facebook, weekend vs. weekday, and posts per day. The full magnitude of each factor’s effect is discussed in detail below.
Facebook can deny the charge all it wants, but according to extensive data for our Facebook page, the Facebook news feed algorithm clearly rewards the purchase of ads. There’s nothing inherently wrong with that — Facebook has every right to charge whatever it wants for the services it provides. The company’s advertisers and publishers, however, need to understand the extent to which Facebook uses ad purchases to increase a page’s news feed exposure. That’s why we conducted the analysis we did — money doesn’t grow on trees, and we need to have a very clear understanding of how money invested in advertising affects our overall bottom line. But it would be nice if Facebook were more transparent and specific about how its news feed algorithm works.
The company’s continued opacity is what led us to do our own digging, and according to Facebook’s own numbers about how our fans interact with our page, it turns out that a dollar spent on Facebook might not be worth as much as a dollar spent somewhere else.