Facebook is facing a snowball effect of advertisers signing onto the boycott, with big names Verizon and Unilever signing on late this week.
The #StopHateForProfit campaign is an excellent way for brands to signal their desire to see change. But the highest-spending 100 brands only accounted for $4.2 billion in Facebook advertising last year or about 6% of the platform's ad revenue. Smaller, direct-response advertisers make up the bulk of their revenue stream.
Facebook is (too) big and can weather this storm.
The algorithmically driven Facebook advertising business model (with some moderation sprinkled in to appease critics) is efficient so it works for advertisers and fundamentally, Zuckerberg won’t change it unless he’s forced to by government regulation.
The news publishing and general media industry - lost out to Facebook years ago continues to erode their own position by sending their audiences to Facebook. If they had worked together and created alternative(s) to Facebook (and not sent content or audiences to Facebook), they might actually have had a fighting chance.
Powered by Brainsy, Inc. (Patented and Patents Pending)
New users only. Existing users Login
Recover your password.