Now, a small poll conducted by Digiday reveals that their third quarter earnings will likely also be equal as important. 56% of the media shoppers surveyed confirm that their customers have paused their July spending in accordance with the Stop Hate for Profit movement.
What is the Stop Hate for Profit movement?
The movement for brands to boycott Facebook as a marketing platform was galvanized under the banner of #StopHateForProfit. The group is organized in collaboration with several entities, including the famous social justice organizations.
Their ultimate goal was to mobilize pressure on what Facebook’s considered lax content policies, particularly regarding things like political rhetoric, and racism.
The Stop Hate for Profit website contains an updated list of companies that spent expenses, along with the steps it suggests that companies take.
What else hit Facebook in 2020? Continuing its rocky history of public perception, Facebook suffered a few more hits this year.
The decision not to curb the statements made by President Trump triggered a storm both internally and externally. Employees within the organization were very critical of the decision, with 400 staging a dissolution at some point.
Coronavirus also created a roller coaster in advertising revenue, with the initial panic of the pandemic amounting to low advertising spending. The numbers bounced back, but Covid caused other problems. The bad actors were reselling medical masks and protective clothing during a nationwide shortage, and it happened during a shortage of ad reviewers by Facebook. There was also a successful attempt to prove that were not actually filtering ads with Covid disinformation .
There has been constant frustration with the upcoming election season and what this could mean for announcements and policies. This has led to Facebook’s recent policy updates, as well as users’ ability to forgo political ads in their news feed.
Just last week, Facebook also opted for $ 650 million in Illinois for using face recognition software to tag users in photos. Illinois in a state required by consent for facial recognition software, and claimed that consent was not obtained from users.
The CCPA has also been launched, with Facebook taking an aggressive stance to force advertisers to comply. Although the sentiment was not negative, the confusion over the policy itself and the unprepared media buyers created a bad start in July .
After over a year of stress that their campaign budget optimization function would have been a requirement, they threw in the towel and opted not to apply it .
Is the advertising of revenues paused linked to the economy?
It has been debatable how much the spending on pause has to do with the current economic climate, against a social statement.
However, just under half of the respondents said their customers would spend more if Facebook’s reputation and values were better aligned with theirs.
When asked about the duration of the break:
- 41% said that spending will resume by the end of July
- 26% said it won’t be until the end of the third quarter
- 17% said it won’t until Facebook makes “significant changes”
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While “significant changes” are not defined, buyers have I said that giving them more control and removing hate speech are the two most important things they could do at this point.
Despite these sentiments, buyers are divided if this boycott actually accomplishes anything
This week’s second quarter earnings announcement will only cover the start of the cussion boycott, which overheated in May and June.
Its effects on Facebook’s bottom line won’t be known until the close of the third quarter, but all eyes are on second-quarter results to be a major indicator of what will be seen at that point.