(Photo courtesy s3-prod.adage.com)
Earlier this month, a civil rights coalition launched the #StopHateforProfit campaign, calling on major corporations to halt advertising on Facebook for the month of July, due to the platform’s “repeated failure to meaningfully address the vast proliferation of hate on its platforms.” The hope is that the boycott will encourage Facebook to ramp up efforts against hate speech and disinformation on the platform.
And the campaign is gaining steam. Verizon, Coca-Cola, Starbucks, and others have all said they would stop advertising on the social media site. And it’s going to leave a mark: Starbucks alone spent almost $95 million on Facebook last year. This year, Starbucks is taking their bucks elsewhere.
So far, almost 100 different brands have expressed support for the campaign and have agreed to boycott Facebook.
However, the hashtag #RIPFB probably won’t be going viral any time soon. Facebook has more than 8 million advertisers, and just 6% of Facebook’s 2019 ad revenue came from its 100 biggest spenders. The majority of Facebook’s ad revenue comes from small and medium-sized businesses, which could protect it from a revenue shortfall due to the boycott.
Still, the boycott is cause for concern for Facebook’s investors. Facebook shares dropped 8.3% on Friday amid the first round of pulled advertising and fell another 1% on Monday morning as more advertisers joined the boycott.
- The two-day stock decline resulted in roughly $60 billion in market value being erased from Facebook at those lows
The #StopHateforProfit campaign is trying to hit Facebook where it hurts: it’s wallet.