More than 500 companies joined hands in boycotting advertising on Facebook in the wake of growing criticism over its handling of hate speech and failure to curb the spread of misinformation. Facebook generated close to $70 billion from advertising last year. It accounted for more than 98% of the company’s total revenue. The move to boycott put Facebook’s stock under pressure as the company admitted there was a rising trust deficit.
What is Stop Hate For Profit?
On June 17, six civil rights groups banded together to launch the Stop Hate For Profit campaign, advocating for advertisers to show solidarity and put a pause on Facebook advertising for July. These names included Color Of Change, Anti Defamation League, Sleeping Giants, NAACP, Common Sense Media & Free Press.
Among other things, there was widespread condemnation of Facebook’s handling of US President Donald Trump’s posts in June that promoted the use of violence to curb civil rights protesters across the country. Facebook also received flak for quoting white nationalist group affiliated publications as trusted news sources and turning a blind eye on voter suppression.
The movement gathered momentum as within a week, big companies like Unilever and Hershey’s jumped on the bandwagon.
What were the demands?
As part of the campaign, 10 demands were outlined for Facebook, calling for accountability, decency and support. The demands included the establishment of a permanent civil rights infrastructure, regular third-party audits with public-display of results, refunding advertisers in cases where ads show up adjacent to offensive content, the expulsion of white nationalist groups and those linked to conspiracies, hate and misinformation, the option for victims of hate and harassment to connect with a company employee and a few others.
Who all joined the campaign?
The outpouring of support by more than 500 companies has definitely caught Facebook off-guard. These include big names like Unilever, Levi’s, Adidas, Ford, Coca-Cola, Honda, Diageo, Colgate Palmolive, Verizon, Puma, and many others. A few companies (such as Starbucks) didn’t join officially but agreed to pause advertising. People might argue that economic pressures might have also weighed in among some of these brands. But largely, the campaign provides a platform for them to show solidarity with the rising protests and public outcry.
Is Facebook feeling the heat?
The boycott may not dent Facebook’s bottom line. More than 70% of its earnings come from small and medium-sized companies. Also, among Facebook’s top 25 advertisers which account for 3% of its revenue, only 3 (Microsoft, Pfizer and Starbucks), have publicly acknowledged participation. Facebook’s shares which nosedived 8% on June 26, recouped their losses.
However, to say Facebook is not feeling the heat would be an understatement. Its image continues to be blatantly tarnished. More recently, Facebook’s VP of Global Affairs & Communications had to justify that the company didn’t profit from hate. Zuckerberg has finally agreed to meet the organisers behind the campaign and review Facebook’s hate speech controls. Tweaking the policies may get back advertisers someday. Whether Facebook manages to change public opinion, only time will tell!