Tuesday, 15 April 2014

Facebook to Release Standalone Messaging App; Adjustments to News Feed Risk Alienating Marketers

NEW YORK – Earlier on Facebook (NASDAQ:FB) began informing users they'll take away chat from their iPhone and mechanical man apps.  The move can force users to transfer a separate traveller app inside successive fortnight to continue causation and receiving non-public messages. a press release discharged by the corporate explicit  ‘we have designed a quick and reliable electronic messaging expertise through traveller, and currently it is sensible for America to focus all our energy and resources on it expertise.’

With the discharge of the new app, Facebook has determined to directly vie against a replacement generation of mobile electronic messaging apps that have enjoyed ascent in recent years.  This includes startups like  Line and WeChat (HK:700) similarly as offerings from seasoned players like Microsoft’s (NASDAQ:MSFT) SKYPE division, Google (NASDAQ:GOOG), and troubled phone maker Blackberry’s (NASDAQ:BBRY) BBM.  The move conjointly follows associate announcement by Twitter (NYSE:TWTR) last week to enter the electronic messaging system via their vascular plant subsidiary.

According to analysts the pass on Facebook’s half is sensible once the corporate spent $ nineteen billion in February to amass WhatsApp, and it's seen as an endeavor to spice up the recognition of Facebook traveller that has lost market share to alternative mobile startups in recent years.  However, there's conjointly concern of a backlash from WhatsApp users WHO have chosen to not be part of Facebook.

Ultimately, the move is supposed to bolster Facebook’s mobile positioning because the company sees this space as important to their continuing success.  In 2012, Facebook noninheritable  Instagram and has helped the photo-sharing app expand their reach to over 200 million users – although that's simply a fraction of the 1.2 billion users on Facebook.

In connected news, Facebook proclaimed on weekday that the corporate had adjusted the formula that promotes or ignore content in an endeavor to induce eliminate ‘spammy’ stories in user’s News Feed.  The changes ar meant to deracinate dishonorable links, request-for-like stories (aka like-bait), and re-shared content. the corporate proclaimed that they'll use the knowledge collected to punish Pages and marketers WHO arrange to manufacture content unfold through unauthorized means that.

The adjustment follows previous changes meant to boost the standard of the New Feed like downplaying memes.  These changes haven't gone forgotten, as marketers became more and more vocal concerning their chafe with Facebook.  At the tip of March, the food-ordering service Eat24 revealed a breakup letter with Facebook that noted a number of their frustration with the social network.

Therein lies the tug-of-war that Facebook is fighting. however will the corporate continues to draw in and retain users, WHO more and more like mobile, while satisfying the wants of the marketers. in the end Facebook’s users aren't the businesses customers, their real customers ar the advertisers.


Shares of Facebook terminated Fri down over 1 % to shut at $ 58.53 in serious volume.

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