This impacts small niche and small business. I've had pages for small business / clothing brands that had 16-25k reach with 50-500 engagement per post drop to 5-6k reach and 5-50 likes, maybe 100+ on a really good post that use to hit 500+.
In terms of brand awareness, there's a high % of individuals in our market that know of the brands and small business but NEVER see posts from our Facebook page. The past 2 years we've relied heavily on IG because people who follow our brands do it because they like our shit. A to B testing between FB and IG for announcements, promotions, or original content; everyone sees the IG profiles. Facebook Pages have just been hit or miss.
Yes, we sponsor posts once in a while, but the engagement isn't there anymore without it. But sponsor posts aren't converting leads enough to make ROI.