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MARCOM Business

The Business of Marketing Communications

Facebook Loses $56 Billion in Market Value Due To Facebook Ad Boycott

MARCOM Business | Facebook Loses $56 Billion in Market Value Due To Facebook Ad Boycott
The growing ban and increasing number of brands joining the boycott has raised pressure on CEO Mark Zuckerberg to handle the situation.

Critics of Facebook Inc. have been raising voices for brands to boycott Facebook ads. The social media giant is facing growing boycott by advertisers over its incapability in handling hate speech on its platform.

The effort gained traction in early June when civil rights organisations demanded for a boycott over Facebook’s inactions including its attitude towards comments by US President Donald Trump. Color of Change, one of the groups backing the boycott, has stated that over 100 advertisers have joined the campaign.

The growing ban and increasing number of brands joining the boycott has raised pressure on CEO Mark Zuckerberg to handle the situation. The boycott has already caused Facebook stocks to sink by almost 8.3% causing the company to lose almost $56 billion in market value.

Many advertisers are small advertisers who are a part of Facebook’s 8 million advertiser network. But recently, a growing number of big brands have joined the campaign who spend millions of dollars on Facebook ads and its allied platforms.

Here is a list of the major advertisers who have distanced themselves from Facebook advertising.

Unilever

The consumer goods giant which is one of the biggest advertisers in the world recently announced its exit from advertising on Facebook, Instagram and/or Twitter for the rest of 2020. The company’s brands like Dove, Lipton and Ben & Jerry’s have joined the boycott campaign.

Coca-Cola

The beverage company stated that it would stop all its digital advertising spends across social media platforms globally. However, the company spokesperson said that it is not officially joining the Facebook Ad Boycott campaign.

Levi Strauss & Company

The Chief Marketing Officer of Levi Strauss, Jen Sey, announced the brand’s exit from Facebook Ads through a blog post stating that it is suspending its spend through July and would reassess the situation further closer to the end date.

Honda America

The automaker’s brands which include Honda and Acura have announced that they would be withholding ads on Facebook and Instagram from July.

BirchBox

The beauty brand which provide subscription service to its customers said that it would be moving its advertising spend to other digital platforms and individual content creators. It has been steadily reducing its spends on Facebook for the past 2 years however, the brand plans to continue its Instagram account.

Lululemon

The fashion brand announced its exit through a tweet saying that it was suspending its paid activities on Facebook and Instagram in an effort to seek meaningful change.

Verizon

John Nitti, Chief Media Officer of the telecom company said that it was stopping paid ads and unpaid posts on Facebook saying that “pausing our advertising until Facebook can create an acceptable solution that makes us comfortable and is consistent with what we’ve done with YouTube and other partners.”

The North Face

One of the first of the big giants to join the campaign, TNF announced its support for the boycott campaign on Twiiter saying  “We’re in. We’re Out.” The brand stopped its paid ads and all posting on Facebook through entire month of July.