Facebook posts by well-known brands are only reaching 2% of the page fans; Forrester Research

It has been nearly a year in the making, and by mid January the marketing landscape will change significantly for many small business operators. Many businesses have built up and now rely heavily on organic reach of their audience through their Facebook page.

It's hard to imagine that the reach of Facebook posts would get worse,though that is the expected outcome. This past week, Forrester Research said that posts to Facebook by well-known brands are only reaching 2% of their fans and followers currently. That is a significant drop from a year ago, before Facebook started to put a squeeze on business pages.

The Wall Street Journal this weekend did a fabulous piece on this topic, and the possible impact on small businesses. Written by Angus Loten, Adam Janofsky and Reed Albergotti, the article goes into some depth on the Forrester Research and other facts surrounding this change.

This isn't really a surprise. When Facebook became a publicly traded company, many experts started questioning and pushing for more and more monetization of the platform. Facebook has responded with strong advertising platforms for desktop and mobile. So forcing businesses to pay to promote their posts isn't a stretch, and is still likely a good marketing choice for some businesses.

But this does open up the door for a lot of healthy competition between digital options and legacy media. As I've been out on sales calls over the past two years, the number one competitor that I've faced has been free posts on Facebook. It is hard to beat free.

Now that those posts are going to fewer consumers, and eventually to none without paying to promote, the playing field is a little more even. Newspapers have seen this type of disruption before, with private party classifieds going the free route to CraigsList. But in this local battle with Facebook, they are taking the free option off the table, and we can now compare value and reach side by side.

In the experiments I've done with placing Facebook ads, the results were quite mixed. Specific to Facebook, I found that people who went there were there to be social, not shop. I think Facebook has done some refinement and increased targeting since I first tried those ads, but the fact is still that Facebook is first and foremost a social platform.

If you are going to be targeting customers, search engine marketing (SEM) might be a better options. Facebook is a cold call, while Google key words are a hot prospect who has already specifically reached out for information by search.

Whatever your feelings are, the approach for media reps in 2015 has to be aggressive with small and medium businesses that have relied on free Facebook for marketing. The free option is going away, but the need to speak to those customers has not. The question now is whether that option remains with Facebook or other media options; all of which now will cost the business.

American Express hits gold with their annual day after Thanksgiving Small Business Saturday event

Various newsrooms across the country and preparing for their coverage of Black Friday spending. Retailers have been preparing, some since last January on their planned coverage for Black Friday. And consumers are plotting their store coverage, anxiously anticipating the arrival of their newspaper on Thursday with specific inserts to get those big deals.

The good news is that spending is predicted to be up in 2014, compared with last year, with a 3% gain predicted. The average American will spend $720 on gifts this year, that is up from $704 according to a recent Gallup Poll. Lydia Saad's article on Gallup's website offers some keen insight on consumer habits and plans for the holiday shopping season, which officially opens on Friday; or Thursday night in some cases.

The malls will be crowded on Thursday night and Friday. But hopefully consumers will also take some time and flood small local mom and pop retails on the new tradition for the holiday, Small Business Saturday. The Shop Small movement has had an impact on Main Street in many communities.

Media companies live and die by big box stores, and frankly lately it has been tough. They continue to squeeze and leverage rates down without apology. The opportunity for media's bright future rests with the success of local stores owned by local individuals. Small towns to medium sized cities also rely on the stability and strength of small business owners to employ people and to pay taxes. It is vital for the strength of the media industry and the communities we serve to have a vibrant business base. Take a few minutes this weekend and spread some love to a non-mall, non-chainstore merchant.

What the newspaper industry can learn from The Profit's Marcus Lemonis and Warren Buffett

I guess I've become a business TV junkie.

It started a couple years ago with "Shark Tank" every Friday night on ABC. Every sales rep should be required to watch this show and then be able to walk up and offer a short and concise sales pitch for their product or service. Perhaps "Shark Tank" was a gateway show to deeper addiction.

Next was "Celebrity Apprentice" with Donald Trump. All businessman should study this show and learn how to work under pressure and with a team. It will make you a stronger manager, and will help you to see the performance level of you and your team.

But my favorite now is "The Profit" on CNBC. Marcus Lemonis walks in and does a quick assessment of an operation from top to bottom, and then offers to invest in a real life struggling business. During the opening of the show, Lemonis states that he wants to save jobs and make money, and he has done this through a variety of small retail and service businesses throughout the US.

I would absolutely love to see Marcus Lemonis take the newspaper industry on in one of his episodes. Every operation needs to have some self examination time, and I believe the way he goes about this business-autopsy would prove extremely beneficial and profitable for newspaper companies.

Lemonis exams the causes of lost business, finds ways to improve cash flow and improve the core business of the investments he makes. The common thread of all of the episodes I've seen is that the basic business is solid, but the focus has been lost by leadership. Lemonis and the show's producers find a way to unlock the inner-passion that the owners and employees of these companies still have. Isn't that what the newspaper industry needs to do?

The business landscape is quickly changing, I fully realize. But the basic model of business can still work as we continue to move and adapt to the emerging digital changes. Inland Press Association had an article that featured Warren Buffett and the future of newspapers.

"Warren Buffett: What Newspapers Need to Do to Survive" goes over some fundamental things newspaper publishers need to do to survive and thrive in the short term and long term. My favorite passage from the story hits directly on finding that passion, in the newspaper employees and the communities we serve.

"Passion does matter, and the proof is in the revenue trends that some newspapers show.    When those dedicated editors gather a team that cares, the community cares right back and shows it in readership."

 

I will rely on business minds like Lemonis and Buffett, and try to follow their lead. Their business principles will work for a small flower shop, a hair salon and I believe, the newspaper industry.