Why advertisers are boycotting Facebook, explained.
A number of major brands have announced in the last week that they’ll be hitting pause on their advertising on Facebook – in protest at the platform’s handling of hate speech and misinformation. Unilever, adidas, Ben & Jerry’s, Ford, Microsoft and The North Face are just a sample of some of the mega brands that have announced boycotts.
A DROP IN A BIG BLUE OCEAN.
According to CNN, 37 big brands in total have now joined the boycott. It sounds like a lot, but Facebook’s total list of advertisers is really, really long. Data from Pathmatics reveals that the 100 largest advertisers on Facebook spent $4.2bnin 2019. So even if every single one of their 100 largest advertisers pulled out, they’d still only lose about ~6% of their advertising revenue. A smattering of 37 brands is unlikely to be huge in relative terms.
SO ZUCK DOESN’T NEED TO WORRY?
Not too much. Facebook is still massively supported by small and medium-sized businesses, that can’t necessarily afford to switch off social media marketing. That said, if the boycott keeps picking up steam, that 37 number could get pretty meaningful pretty quickly. The brands announcing a boycott get some free publicity, all while saving on their marketing bill during what’s probably a tough time.