Media Update: Facebook Ad Boycott

Written By Josvan Perez
Facebook Ad Boycott

There has been a lot of recent coverage regarding the #StopHateforProfit boycott of Facebook by global corporations. This movement began on June 19, 2020 seeking to make brands pressure Facebook to remove alleged hate speech and violence on its service by stopping their ads on the platform. Over 100 brands have joined, such as North Face, Coca Cola, Microsoft, Reebok, Unilever, Hershey Co., Verizon, Honda, Ben & Jerry’s, Adidas, Puma, Pfizer, Best Buy and REI, which was an early supporter of the cause. Some brands are even stopping their campaigns on Instagram, Twitter and YouTube. To access the latest list of participating businesses, click here. 

Now, why did this boycott begin and why now? Civil rights activists have been trying to make Facebook safer for years. They’re concerned about the different groups allowed to livestream shootings, state conspiracy theories, write hate speeches and suppress voting. However, George Floyd’s recent death and the consequential apparent lack of progress on Facebook’s part inspired this group to start the #StopHateforProfit movement. The goal is to get brands to help make a change now. 

Initially, this movement asked big corporations to pause their media ad campaigns on Facebook to elicit a reaction and policy change. However, a number of small businesses also stopped their ad spend on the platforms to show support. Still, some wonder if this movement is even going to affect Facebook. The Verge’s article explains that the platform has two kinds of advertising: Brand Advertising and Direct-Response Advertising. It also states that the companies involved in the boycott mostly place Brand Advertising, which only accounts for under 10% of Facebook’s revenue. However, we can see how the movement has had an impact on Facebook’s stock, which has dropped during this time.

Another recent article notes that brands are increasingly responding to consumer opinions. This is after directly witnessing, during the pandemic, how a brand will be better perceived and accepted in the long term if it shows loyalty and support towards consumer interests.

Facebook Puerto Rico will make a statement tomorrow to discuss this topic and its effect on advertising on the island. We will continue monitoring these events. So far, corporations will be pausing campaigns on Facebook and Instagram during the month of July. However, if the platforms do not make a decision fast, we predict this will continue until they make a change. 

Articles:

Josvan Perez
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