6 Ways to Calculate Engagement Rate on Social Media (Free Calculator)


Engagement rates are the currency of the social media marketing industry.

Sure, vanity metrics like followers, likes, and impressions count for something. But engagement metrics like shares and comments give your social media performance perspective.

That’s why engagement metrics are often used as selling points in social influencer media kits, or to gauge a social campaign’s return on investment. Yet oddly, there’s no standard formula for calculating engagement rates.

So, it’s time to do the math. Add these formulas to your social media toolkit so you can be sure you’re using the right equation in the correct context.

Bonus: Use our free engagement rate calculator to find out your engagement rate 4 ways fast. Calculate it on a post-by-post basis or for an entire campaign — for any social network.

What is engagement rate?

Engagement rate is a formula that measures the amount of interaction social content earns relative to reach or other audience figures. This can include reactions, likes, comments, shares, saves, direct messages, mentions, click-throughs and more (depending on the social network).

“Engagement” on social media generally refers to actions that are more active than passive (such as views or impressions).

There are multiple ways to measure engagement rate, and different calculations may better suit your social media objectives.

Why should you track engagement rate?

When it comes to social media analytics, follower growth is important, but it doesn’t mean a lot if your audience doesn’t care about the content you post. You need comments, shares, likes and other actions that prove your content is resonating with the people who see it.

Your engagement rate does just that — shows how much your content is resonating with your audience. It also shows that your relationship with your followers is strong and healthy. If they are willing to take the time to comment on your post, they are paying attention and likely willing to turn into a customer one day.

Common engagement metrics

Now for the age-old question: what counts as engagement? We’ve already hinted at it above, but here’s a more extensive list of interactions on your social media posts that could count as engagement. You may choose to include all or some of these engagement metrics in your equations.

  • reactions
  • likes
  • comments
  • shares
  • saves
  • direct messages
  • mentions (tagged or untagged)
  • click-throughs
  • clicks
  • profile visits
  • replies
  • retweets
  • quote tweets
  • regrams
  • link clicks
  • calls
  • texts
  • sticker taps (Stories)
  • emails
  • Get Directions (Instagram only)
  • use of branded hashtags

6 engagement rate calculation methods

These are the most common formulas you’ll need to calculate engagement rates on social media.

Total engagements typically represents a tally of likes, favourites, reactions, comments, shares, views, retweets, and sometimes include clicks, depending on which platform you’re using.

1. Engagement rate by reach (ERR)

This formula is the most common way to calculate engagement with content.

ERR measures the percentage of people who chose to interact with your content after seeing it.

Use the first formula for a single post, and the second one to calculate the average rate across multiple posts.

  • ERR = total engagements per post / reach per post * 100

To determine the average, add up the all the ERRs from the posts you want to average, and divide by number of posts:

  • Average ERR = Total ERR / Total posts

In other words: Post 1 (3.4%) + Post 2 (3.5%) / 2 = 3.45%

Pros: Reach can be a more accurate measurement than follower count, since not all your followers will see all your content. And non-followers may have been exposed to your posts through shares, hashtags, and other means.

Cons: Reach can fluctuate for a variety of reasons, making it a different variable to control. A very low reach can lead to a disproportionately high engagement rate, and vice versa, so be sure to keep this in mind.

2. Engagement rate by posts (ER post)

Technically, this formula measures engagements by followers on a specific post. In other words, it’s similar to ERR, except instead of reach it tells you the rate at which followers engage with your content.

Most social media influencers calculate their average engagement rate this way.

  • ER post = Total engagements on a post / Total followers *100

To calculate the average, add up all the ER posts you want to average, and divide by number of posts:

  • Average ER by post = Total ER by post / Total posts

Example: Post 1 (4.0%) + Post 2 (3.0%) / 2 = 3.5%

Pros: While ERR is a better way to gauge interactions based on how many people have seen your post, this formula replaces reach with followers, which is generally a more stable metric.

In other words, if your reach fluctuates often, use this method for a more accurate measure of post-by-post engagement.

Cons: As mentioned, while this may be a more unwavering way to track engagements on posts, it doesn’t necessarily provide the full picture since it doesn’t account for viral reach. And, as your follower count goes up, your rate of engagement could drop off a little.

Make sure to view this stat alongside follower growth analytics.

3. Engagement rate by impressions (ER impressions)

Another base audience metric you could choose to measure engagements by is impressions. While reach measures how many people see your content, impressions tracks how often that content appears on a screen.

  • ER impressions = Total engagements on a post / Total impressions *100
  • Average ER impressions = Total ER impressions / Total posts

Pros: This formula can be useful if you’re running paid content and need to evaluate effectiveness based on impressions.

Cons: An engagement rate calculated with impressions as the base is bound to be lower than ERR and ER post equations. Like reach, impression figures can also be inconsistent. It may be a good idea to use this method in conjunction with reach.

Read more about the difference between reach and impressions.

4. Daily engagement rate (Daily ER)

While engagement rate by reach measures engagement against maximum exposure, it’s still good to have a sense of how often your followers are engaging with your account on a daily basis.

  • Daily ER = Total engagements in a day / Total followers *100
  • Average Daily ER = Total engagements for X days / (X days *followers) *100

Pros: This formula is a good way to gauge how often your followers interact with your account on a daily basis, rather than how they interact with a specific post. As a result, it takes engagements on new and old posts into equation.

This formula can also be tailored for specific use cases. For instance, if your brand only wants to measure daily comments, you can adjust “total engagements” accordingly.

Cons: There’s a fair amount of room for error with this method. For instance, the formula doesn’t account for the fact that the same follower may engage 10 times in a day, versus 10 followers engaging once.

Daily engagements can also vary for a number of reasons, including how many posts you share. For that reason it may be worthwhile to plot daily engagement versus number of posts.

5. Engagement rate by views (ER views)

If video is a primary vertical for your brand, you’ll likely want to know how many people choose to engage with your videos after watching them.

  • ER view = Total engagements on video post / Total video views *100
  • Average ER view = Total ER view / Total posts

Pros: If one of your video’s objectives is to generate engagement, this can be a good way to track it.

Cons: View tallies often include repeat views from a single user (non-unique views). While that viewer may watch the video multiple times, they may not necessarily engage multiple times.

6. Factored Engagement Rate

In rare cases some marketers use a “factored engagement rate.” As the name suggests, factored engagement rates add more or less weight to certain factors in the equation.

For example, a marketer may wish to place a higher value on comments versus likes, weighting each comment as two versus one. The subsequent equation would look something like this:

  • Comment-weighted ER = (Total comments x 2) + all other engagements / Reach per post *100

Obviously, this technique inflates the resulting engagement rate and can be misleading, especially since the use of factored engagement rates is not widespread. For this reason, Hootsuite does not recommend its use.

How to calculate cost per engagement

Another useful equation to add to your social media toolbox is cost per engagement (CPE). If you’ve chosen to sponsor content and engagement is a key objective, you’ll want to know how much that investment is paying off.

  • CPE = Total amount spent / Total engagements

Most social media ad platforms will make this calculation for you, along with other object-oriented calculations, such as cost-per-click. Make sure to check which interactions they count as engagements, so you can be sure you’re comparing apples to apples.

Free engagement rate calculator

Now that you’ve reviewed all the formulas, are you ready to calculate your engagement rate? Try using our free engagement rate calculator.

All you need to use this calculator is Google Sheet. Click the “File” tab and select “Make a copy” to start filling in the fields.

To calculate the engagement rate of a single post, input “1” in “No. of Posts.” To calculate the engagement rate of several posts, input the total number of posts in “No. of Posts.”

Bonus: Use our free engagement rate calculator to find out your engagement rate 4 ways fast. Calculate it on a post-by-post basis or for an entire campaign — for any social network.

How to track your engagement rate automatically

If you’re tired of calculating your engagement rate manually, or you’re simply not a math person (hi!), you might want to consider using a social media management tool like Hootsuite. Most social media management tools provide some sort of analytics tracking, but obviously we’re biased towards our own product, which allows you to analyze your social media engagement across platforms from a high level and get as detailed as you want with customized reports.

Here’s an example of what looking at your engagement data in Hootsuite looks like:

Engagement report for all social networks in Hootsuite

And here’s an example of what an Instagram specific engagement report looks like in Hootsuite.

Instagram engagement rate report

In both reports, it’s super easy to see how many engagements you got over a period of time, what is being counted as an engagement for each network, and compare your engagement rates to previous time periods. You’ll also get to see stand out posts that performed well in a given time period, and use that information to create more engaging posts in the future.

Pro tip: You can schedule these reports to be created automatically and remind yourself to check in as often as you want.

What is a good engagement rate?

Most social media marketing experts agree that a good engagement rate is between 1% to 5%. The more followers you have, the harder it is to achieve. Hootsuite’s own social media team reported an average Instagram engagement rate of 4.59% in 2020.

Now that you know how to track your brand’s social media engagement, read up on how to boost your engagement rate.

Use Hootsuite to track and improve engagement rates across all your social media channels. Try it free today.

Get Started

All your social media analytics in one place. Use Hootsuite to see what’s working and where to improve performance.





Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.

The Best Laptops for Business of 2021



4 min read

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.


Whether you’re running a business or have to buy your own gear as a contractor, you will almost certainly need the best business laptop for your line of work. 

The requirements for attaining such a title, however, vary depending on the laptop’s intended purpose. For some users, ruggedness and reliability might be at the top of your checklist, in which case the Lenovo ThinkPad X1 is the definitive answer. On the other hand, those who want a laptop for personal use as well as for work — like students, for instance — might be better off with a MacBook Pro or MacBook Air.

After divulging the best laptops for realtors, specifically, along with the best Chromebooks under $200, we’ve made it our goal to help you find the best laptops for business in general. No matter what you plan on using it for, all of our picks were exhaustively vetted to ensure the utmost quality in our recommendations.

Best Overall: Lenovo ThinkPad X1 Carbon ($1,295)

Best for Small Business: HP Pro C640 Chrome Enterprise ($591)

Best for Business and Personal Use: Apple MacBook Pro – 16-Inch ($2,245), also at other retailers

Best Under $1,000: Google Pixelbook Go ($849), also at other retailers

Best for Students (best for business school): Apple MacBook Air ($899), also at other retailers

Best 2-in-1: Microsoft Surface Pro 7+ for Business ($850)

Best for Online Business (best for mobile business): Lenovo IdeaPad Duet ($189), also at other retailers

Best Overall: Lenovo ThinkPad X1 Carbon ($1,295)

When you say the words “enterprise laptop,” the first brand that pops into a lot of laptop aficionados’ heads is Lenovo, which has been supplying businesses with its ThinkPad lineup since the early aughts. The 14-inch X1 Carbon in particular takes many of the key features that define the Lenovo ThinkPad (including the signature TrackPoint nub) to a thin and light design with up to a 10th Gen Intel Core i7 processor to boot.

Best for Small Business: HP Pro C640 Chrome Enterprise ($591)

Best for Small Business: HP Pro C640 Chrome Enterprise ($591)

Chromebooks have come a long way since their conception over a decade ago, to the extent that they’re now a viable fit for the workplace. This is no more true than for the HP Pro C40 Chrome Enterprise, one of the first Chromebooks built for business first and foremost, thanks to its adoption of Chrome OS with Chrome Enterprise, Google’s managed cloud platform. It doesn’t skimp on hardware either, boasting an all-metal chassis and 10th Gen Core i7 CPU.

Best for Business and Personal Use: Apple MacBook Pro – 16-Inch ($2,245)

Best for Business and Personal Use: Apple MacBook Pro - 16-Inch ($2,245)

The 16-inch MacBook Pro might be a couple of years behind in the processor department, but its 9th Gen Intel Core i7 and Core i9 can still best Apple’s latest M1 chip in a contest of raw performance. That, along with its gorgeous, large format Retina display makes it an incredibly versatile option for those looking to use their laptop at home for things other than work like digital art, photography, gaming, or editing videos on the side.

Best Under $1,000: Google Pixelbook Go ($849)

Best Under $1,000: Google Pixelbook Go ($849)

No one knows how to make a Chromebook quite like Google, and the Pixelbook Go sweetens the deal by keeping its price point well below the $1,000 mark, making it the best budget laptop for business bar none. In addition to a 12-hour battery life and a remarkably thin and light design, the Pixelbook Go is made to be accessible, letting you open the lid with one hand and carry it around using a rigid, grippable base.

Best for Students: Apple MacBook Air ($899)

Best for Students: Apple MacBook Air ($899)

It might not be as powerful as the 16-inch MacBook Pro, but the MacBook Air comes close for a fraction of the price. That power comes courtesy of Apple’s own M1 processor, which is 3.5 times faster than that of its predecessor. A fanless design keeps it quiet in class while the fast SSD storage allows you to switch quickly between apps. A 20-hour battery life lets you work without interruption, even when there’s no power outlet in sight.

Best 2-in-1: Microsoft Surface Pro 7+ for Business ($850)

Best 2-in-1: Microsoft Surface Pro 7+ for Business ($850)

An iterative refresh of the standard Surface Pro 7, the Microsoft Surface Pro 7+ for Business brings a few nifty features to the device that qualify it as the best 2-in-1 laptop for business. On top of its already great features including an all-metal design, a high-resolution screen, and best-in-class optional keyboard, the Surface Pro 7+ for Business adds a removable SSD and 4G LTE capabilities for computing while commuting.

Best for Online Business: Lenovo IdeaPad Duet ($189)

Best for Online Business: Lenovo IdeaPad Duet ($189)

Managing a business online can be tough, especially if you’re constantly on the move. The Lenovo IdeaPad Duet Chromebook, the best laptop for mobile businesses, mitigates some of the pain points by combining a compact 10.1-inch tablet with a full-fledged keyboard and trackpad as well as a kickstand that positions it upright. Not only can you snap the keyboard on and off on the fly, but you can also participate in Zoom calls with its 2-megapixel front camera.



Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.

Amazon Helps Seattle Cool Down Amid Record Heat


The online retail giant delivers relief as a record-breaking heatwave hangs over the Pacific Northwest.

Grow Your Business,
Not Your Inbox

Stay informed and join our daily newsletter now!


1 min read

Opinions expressed by Entrepreneur contributors are their own.


Amazon has transformed part of its downtown Seattle headquarters into a public cooling center, CNBC reports.

Amazon Meeting Center, part of the company’s South Lake Union campus, has made room for 1,000 people, according to the city’s website. It’s an area where many homes lack air conditioning since the weather doesn’t usually require it.  

But as of Monday, temperatures in Seattle hit 108, marking the third consecutive day above 100 degrees, according to the National Weather Service.

Prior to this, Seattle has only had three days above 100 degrees in the past 126 years. 

Heat alerts are in effect from Vancouver to Mexico as a heat dome has caused extreme temps to linger for weeks. And in the Pacific Northwest, scorching temperatures have made history by melting power cables in Portland, Oregon, and buckling roads in Everson, Washington, HuffPost reports. 

Scientists say there’s evidence showing climate change is contributing to the extreme temperatures that could become more common this century. 

Washington, meanwhile, should start seeing temperatures start shifting Tuesday, according to the National Weather Service, which also warned that “dangerously hot conditions” still remain. 





Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.

‘Bachelorette’ Star, Co-Host Under Fire for Receiving More Than $20,000 in PPP Loans for Being an Influencer


A Reddit user uncovered that the star received a loan of $20,833 earlier this year by using the LLC Tayshia Adams Media.

Grow Your Business,
Not Your Inbox

Stay informed and join our daily newsletter now!


3 min read


During a time when so many small businesses were struggling and and trying to survive amid the pandemic, many applied for PPP (Paycheck Protection Program) government loans as a way to continue to pay their employees.

The PPP, which was intended to be used by small businesses of under 500 employees, was classified as an “emergency disaster loan program” and allowed businesses to apply for loans up to 2.5 times their average monthly payroll in 2019.

For some, PPP loans were the difference between employees being able to put food on the table for their families or not, and though they helped tremendously, they still couldn’t make up for all of the revenue and pay that was lost during the past year.

Independent contractors and other self-employed Americans were also eligible for the loans.

Related: How to Obtain an SBA Coronavirus PPP Loan and Have It Forgiven

Unsurprisingly, many people found loopholes and ways to file for the PPP loans even thought there might have been other businesses that were in more desperate need.

Among this group were many influencers, who — though they’ve technically done nothing illegal by claiming their work “influencing” qualifies them for loans under the industry of Independent Artists, Writers and Performers — have taken heat for using their own names as LLCs to receive payouts for the government.

The latest to catch heat for this is former Bachelorette star and current host of the show’s 17th season, Tayshia Adams.

A Reddit user uncovered that the star received a loan of $20,833 earlier this year by using the LLC Tayshia Adams Media.

Related: Has There Been $1 Billion in PPP Fraud?

Data provided by FederalPay.org confirmed the finding, showing that the loan was approved on January 29, 2021.

“Tayshia Adams Media LLC in Newport Beach, CA received a Paycheck Protection Loan of $20,833 through Itria Ventures LLC, which was approved in January, 2021,” the data states. “This loan has been disbursed by the lender and has not yet been fully repaid or forgiven. The exact status of ongoing loans is not released by the SBA.”

In a statement to E! News, Adams’ rep explained that the loan enabled the influencer to hire a new employee. 

“As a business owner, television and podcast host, and brand ambassador, Tayshia obtained a PPP Loan that enabled her to hire an employee (someone who was previously unemployed) to whom she offers market-based pay and benefits,” her rep said. “Since exhausting the PPP loan funds, but in light of the growing economy, Tayshia has committed to retaining her employee for the foreseeable future.”

FederalPay reported that 99,762 businesses filed for loans in the same industry as Adams (Independent Artists, Writers and Performers) with a total of $1.64 billion being granted across the category and an average payout of $16,424.

Adams isn’t the only Bachelor franchise star taking heat.

Reddit users also found that former leads Colton Underwood and Arie Luyendyk Jr. pulled in over $11,000 and $20,000, respectively, with Luyendyk even filing his application under the LLC “Instagram Husband.”

Adams is currently co-hosting of this season of The Bachelorette alongside friend and Bachelorette alum Kaitlyn Bristowe.

The pair stepped in following controversy and fallout due to racially insensitive comments made by the show’s longtime host, Chris Harrison.

Related: PPP Forgivable Loans Will be Unforgiving for Many



Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.

Facebook becomes the youngest company to reach the trillion dollar milestone


After winning an antitrust lawsuit, shares in “the social network” rose 4.2 percent.

Limited-Time Savings:
60% Off of Our Social Media Books

Use code SOCIAL2021 through 5/27/21 to get these books, for less.


2 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.


Facebook , the company founded by Mark Zuckerberg , surpassed a trillion dollars in its market capitalization. After winning an antitrust lawsuit, shares in “the social network” rose 4.2 percent.

After a US judge dismissed federal and state antitrust complaints against the company, its stock traded at $ 355.64, the highest level in two months.

This is how Facebook became the youngest company to reach the 13-figure milestone, just 17 years after its founding. The company was founded by Zuckerberg in 2004 at Harvard University.

This fact comes three years after Apple.Inc became the first company of American origin to reach the 13-digit valuation. Right now, four other US firms also have a value of this type, among them is the parent company of Google , Alphabet , Microsoft , Amazon.com , and Facebook .

Shares of “the social network” rose 30% this year, amid people’s need to stay connected with family, friends and coworkers.

Facebook bought Instagram in 2012 and WhatsApp in 2014. Years later the company was accused of monopolizing social networks. The United States Federal Trade Commission indicted the company in December 2020, explaining that the size of the firm has caused consumer damage that includes the reduction of quality in its products.

However, a United States District Judge, James Boasberg, explained that the lawsuit did not meet the necessary criteria.



Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.

The One Number That Doomed The FTC’s Antitrust Case Against Facebook


Facebook is a giant. That’s not opinion, that’s fact: The company sports a trillion-dollar market cap and collected $70.7 billion in revenue last year, far more than its nearest competitor within social media. Meanwhile, over $60 billion in cash sits on its balance sheet. Its founder, Mark Zuckerberg, is the fifth-richest person in the world thanks to his stake in the business, and another half-dozen or so billionaires draw their fortunes from Facebook, too. 

But when FTC regulators set out to prove something similar—that Facebook is not only a giant but also a giant monopoly—they swung and missed. And a federal judge on Monday dismissed their much-watched antitrust case against Facebook, seen as the government’s first real effort to curb Facebook’s dominance after several years of increasing political rhetoric against the company and rounds of congressional testimony probing into Facebook.

What happened? The FTC hinged their case around one figure. In their original 53-page court filing made back in December, they estimated Facebook owned “in excess of 60%” of a market they defined as “personal social networking.” The FTC didn’t offer any further details about how it arrived at the 60% figure nor what it represented: Users, revenue—something else? It was all unclear. Likewise, what exactly constitutes “personal social networking,” a term the government coined for its argument. The phrase, theoretically, allows the FTC to draw a distinction between Facebook and professional networks, like LinkedIn, and messaging apps, like Telegram or Signal. Putting Facebook into a separate bucket where there aren’t many other competitors would—again, theoretically—bolster the government’s case, which revolves around the idea that Facebook hampers competition. The lack of many serious rivals would seem like strong proof of that.

In attempting to combat Facebook, Federal Judge James E. Boasberg, an Obama appointee, admitted regulators faced a tougher task than if they were pursuing a more traditional business. Sites like Facebook “are free to use, and the exact metes and bounds of what even constitutes a [personal social network] service—i.e., which features of a company’s mobile app or website are included in that definition and which are excluded—are hardly crystal clear,” Boasberg writes. But the government’s argument lacked necessary detail, the judge concluded. “The FTC’s inability to offer any indication of the metric(s) or method(s) it used to calculate Facebook’s market share renders its vague ‘60%-plus’ assertion too speculative and conclusory to go forward,” Boasberg writes.  

“Maybe they wanted to keep their powder dry because they weren’t quite certain how they were going to go about proving market power and wanted to get a look at how the defendants would respond. That’s the generous interpretation,” says Doug Melamed, the former head of the Department of Justice’s antitrust division. “Another one, of course, is that they were too sloppy. And they never thought about how insubstantial and really inadequate an allegation like that is without saying what the 60% is about.”

The dismissal is a surprise setback for the FTC in its much-watched case against Facebook, which former commissioner Joseph J. Simons reportedly had viewed as a career highlight. (Simons declined to comment for this story.) But even if the FTC had better explained its 60% figure, it still would’ve been a surprise cornerstone for the government to build its case on. While there’s no firm legal rule, but generally antitrust cases proceed when authorities can show a defendant control more like 70% and above of a market. During the government’s antitrust case against Microsoft, for instance, regulators had estimated Microsoft dominated 80% to 85% of the market. 

The FTC has struck out only for the time being. Regulators have 29 days to refile the complaint against Facebook. But the judge’s decision is a clear indication that pursuing action against Facebook in court will be harder—more difficult than calling Zuckerberg back to Congress for another day in the stocks and additional testimony.

“My intuition is that the FTC can survive this and get to the next stage of litigation,” says William Kovacic, a former FTC chairman. “But the judge has, fairly emphatically, said, ‘I’m going to be watching you all the way. And believe me, nothing you get in my courtroom is gonna come easy.’ And this isn’t a government-hating Republican appointee.”



Source link

If you like our work and 

interested in similar solutions, want to develop your own blog, brand awareness or have a question?

 

Contact us and create your future with our professionals right now

 

Digital Marketing Agency That Provides Solutions. Help You Grow & Cut Your Running Costs.

Speak with our specialist today to get started with on-demand solutions, social media management & more…

We are one of the most effective all in one results-driven digital marketing agency

Getting online is easy. Succeeding online is a different story. You’ll need more than just a beautiful website to stand out these days. Online marketing solutions. Conversion-based web design coupled with a lead generating marketing plan, your online success is inevitable.

Who We Are

We are a team of consultants, vendors, graphics designers and development professionals who love partnering with good people and businesses to help them achieve online success.

What We Do

We’re focused on our craft and bringing everything we have to the table for our clients. We create custom, functional graphics, branding & content focused on converting your users into customers.

Why We Do It

Each of us loves what we do and we feel that spirit helps translate into the quality of our work. Working with clients who love their work combines into a fun, wonderful partnership for everyone involved.