Despite ignoring the news about the boycott of Facebook advertisers, it seems that now it is necessary for the company to pay attention as its shares have been affected in the stock market and have fallen by 3% just starting the week, the losses it could increase with the passing of the days.
Big brands like Coca-Cola, Unilever, Starbucks and Hershey’s announced the suspension of their advertising on the social network as they are not satisfied with the way Facebook is giving it to handle disinformation and hate speech.
Although most of Facebook’s revenue comes from small advertisers, companies like Starbucks make a pretty big dent in the platform’s finances, as they spend too much money on banner ads annually.
“Facebook needs to address this issue quickly and effectively to prevent ad withdrawals from potentially spiraling out of control,” said Bradley Gastwirth, chief technology officer at Wedbush Securities.
“A civil rights coalition that includes the Anti-Defamation League (ADL) and the National Association for the Advancement of Colored People (NAACP) launched the #StopHateforProfit campaign in early this month, which calls on large corporations to stop advertising on Facebook during the month of July, due to the platform’s “repeated failure” to meaningfully address the large proliferation of hate. ”
Different well-known brands such as The North Face and REI joined this campaign and over the days many other brands were added to the list.
Nick Clegg, Facebook’s vice president of public affairs, was emphatic in rejecting the boycott and said they will tolerate any kind of hate speech. “We don’t like it, our users don’t like it, the advertisers understandably don’t like it … We benefit from positive human connection, not hate,” he insisted.