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"No longer matter" is the kind of overstatement only the blogosphere could produce.
There's no indication that the industry is willing to jump willy nilly into a new and untested metric, just that there's now another metric by which to judge a site's potential as a venue for reaching users and that it will receive an increasing amount of attention. By any real measurement, engagement not only isn't a favorite, it's not even on the radar. As soon as the first engagement based ads hit en masse, people will start gaming the engagement metrics just like they've been gaming the other metrics for years. I'd wait to see some level of market penetration from the advertisers before declaring that engagement is even a drop in the bucket, let alone a significant new metric and it'll be a long time before it's the new favorite, if ever. You sort of made this point toward the end of your blog post, I just thought the headline was disingenuous enough to deserve some comment.
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