It sure has been a real rollercoaster for Facebook, from releasing new updates: Zoom like features, to releasing the dark mode for desktop and the almost released update for the mobile, to the most recent one, “the boycott issue“. If you thought it was not a big deal before, it is now. Not to you directly but it sure should have an effect on Facebook.
“The boycott issue” refers to an uprising organisation forming an alliance with big companies to fight against “hate speech”. Hate speech refers to inappropriate words which could be vulgar or just plain insensitive. It could be racist too. In the light of the unjust killing of George Floyd, people’s emotions have hightened and as such, it makes complete sense for people to fight against such injustice whichever way they deem fit.
The Stop Hate For Profit campaign launched a few weeks ago, starting with popular sports and outdoor lifestyle brands like The North Face and Patagonia. It has since gained steam with mainstream corporate America after picking up support from ice cream brand Ben & Jerry’s and film distributor Magnolia Pictures.
Big companies that have joined the Boycott now include: Unilever, Verizon, Coca-Cola, Aviva and intercontinental hotels group, Adidas, Clorox, Conagra, Denny’s, Ford, Starbucks. Chipotle, HP, Pfizer, Microsoft, Pepsi and Puma are the most recent to pull their ads from Facebook.
We should note that Facebook has experienced this “phase” but what is different this time is big companies like the ones mentioned above are getting involved in this. This could mean that the other “situations” were not as serious. Reports say that Mark Zuckerberg, the CEO of Facebook has lost about 7 billion dollars due to this boycott but the question should be “Is Facebook really losing?” “Does this current boycott affect Facebook’s bottom line?“
Various sources have confirmed that more than 8 million advertisers use the platform and the top 100 advertisers on Facebook contribute just 6% of its revenue. Wow! So, is Facebook really affected?
Advertising still represents the vast majority of Facebook’s revenue, and media reports indicate that senior executives at the company are working hard to keep ad buyers happy. Irrespective of the continuous pull out of big brands, other medium-sized brands and small brands may not be willing to cut off advertising as that itself aids in the progression of their businesses.