Rumor: Facebook Cracking Down on Free Advertising

codeSilicon Valley blog Valleywag has claimed that Facebook is taking steps to limit the ability of brands to advertise on the social media network without paying. 

Citing a "source professionally familiar with Facebook's marketing strategy," Valleywag reports that Facebook is cutting the "organic page reach" of brand pages to one to two percent. 

In other words, unpaid posts from brand pages will reach a much smaller portion of the audience that has "liked" that brand's page. 

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Slate notes that many larger brands have already seen a sharp decline in their organic reach since around October of 2013. At the same time, it is unclear how these changes will affect smaller brand pages, such as those by travel agencies or independent travel agents. According to a study by Ogilvy PR, the biggest drop-off in organic reach has come to pages with over 500,000 likes, Slate said. 

Keep visiting for further updates to this developing story. 

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