The Difference between post reach and post engagement is that with post reach it is how any people are seeing your post on a give day or at a give time, while post engagement is how many people are actually commenting on, liking, reacting to, or otherwise responding to your posts.
Knowing the Difference between these two is so important because otherwise you can waste money on advertising. I learned the hard way last summer, I spent some money of Facebook and Instagram advertising, but because I was trying to target too wide of a base, I ended up getting lots of clicks but not a lot of sales as a result.
A business owner can use Facebook Insights in order to better serve their customers, by seeing the particular demographics and psychographics of their business's specific customer base. They can advertise specific products, services or content to their customers that they know will be attractive to them based upon the information provided by Facebook Insights.
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