Abstract for: The Rise and Fall of Organic Reach on Facebook

Facebook, a Social Media platform, allows businesses to communicate with potential and current customers by organically reaching out to them, that is, without making any payment. Lately, Facebook has been criticized for a decline in organic reach of content posted by businesses on Facebook compared to the organic reach experienced for such content earlier. While, some marketing experts are attributing this decline to mala fide commercial interests of Facebook, managers at Facebook have refuted such claims. With the aim of exploring an endogenous reason for the decline in organic reach of businesses’ content on Facebook, this research uses System Dynamics to model organic reach on Facebook. It finds that not only is the decline in organic reach an endogenous outcome of interactional dynamics among heterogeneous agents constituting the system, but, also that it is possible to contain the decline through managerial intervention by Facebook. It is shown that by altering the responsiveness and size of memory used by its algorithms, Facebook can ensure a more desirable organic reach for content posted by businesses.