In practice, this means that users who've closed out multiple
ads in the same category -- for example, ads for mobile app
installs -- by clicking "hide" should see fewer of those ads going
forward. Meanwhile, the fact that a user has liked or otherwise
interacted with multiple ads in a category -- for example, movies
-- makes it more likely for them to see a greater frequency of
"That means people should see ads that are more relevant to
them, and fewer ads that they might not be interested in," according to a
Facebook blog post.
While Facebook doesn't break out how much ad revenue it
generates from news feed versus placements on the right rail of
desktop screens, it's safe to say that the former has become a far
more important revenue source. (All of Facebook's mobile ad revenue
-- which constituted 41% of the total in the second quarter --
comes from news feed.) In that context, Facebook's move to give
users more control over what shows up in their news feeds and a way
of expunging more of the ads they find jarring makes sense.
However, it's the algorithms dictating which organic posts
appear in news feed that have historically been more controversial.
A critical mass of users and marketers reported last fall that the
organic reach of their posts had fallen off, in some cases
GroupM Next, for one,
did a study into pages operated by 25 big brands that showed
that the number of users seeing posts from a brand they "liked" was
down 38% over a five-week period.