Who’s Hurt by Facebook Changes? Look at TAC Ratio.

The Verge’s Silicon Valley editor, Casey Newton, tweeted on Thursday:

So many publishers think they have audiences, when what they really have is traffic. I think we’re about to find out who has an audience.

To find out who has what, look to their financials. The higher the TAC (traffic acquisition cost) to ad revenue ratio, the more it’s just a site with ads, as opposed to being a real publisher. Facebook feed changes hurt the former far more than the latter.

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