Did you know Study shows brands that pause Facebook advertising are still doing good
Advertisement is the major source of income not only for all social media platforms but also for the companies promoting their products on a big platform where their products are seen by a billion users every month. Therefore, none of the social media platforms would want to lose these brands. Also, companies would not like to boycott these platforms. However, Facebook had a very large list of brands due to its Goodwill around the world. During last year boycott on social media, many big brands providing the major source of income to the social media platform are not giving much importance to the advertisement especially on Facebook, this is because there were a lot of hate speech and hatred posts on Facebook that provided the fake information to all the users.
Due to this, Facebook lost a portion of its income as a result of this boycott by the companies according to a report. Facebook badly lost its reputation in the last year due to misinformation about COVID-19 and hate speech. However, in the last research, in which data was not published, it was found that pulling out of advertisement from the social media platform did not much harm to the goodwill of Facebook.
In the latest research by Forrester (as per MD), it is found that almost 43 renowned companies took a part in the boycott of Facebook advertisement due to the misinformation and hate speech, that Facebook failed to control. However, there were only seven companies, whose revenue went down as a result of the boycott on social media, when their interim financial statement was compared from the previous quarter. These search results were produced by the vice president and principal analyst Sucharita Kodali. The astonishing results were that the 36 companies’ revenue was increased from before to the next quarter of 2020. However, many of these companies’ revenue decreased from year to year, but according to Kodali, COVID-19 also took a part in decreasing the revenue of these companies.
The renowned companies’ names, which took part in the boycott were Adidas and Birchbox, Best buy, and Clorox. This protest was led by the civil rights group who tried to put strong pressure on the giant social media platform and the largest digital advertisement platform around the globe. Their main slogan was hated speech and fake information which is generated from Facebook.
In the last year report, around 60 percent of all advertisement is controlled by Facebook and Google. According to an estimate, Facebook earns around 70 billion dollars from selling advertisement to the big brands. Buying advertisements from Facebook and Google has become cost-effective for major e-commerce players. Kodali further added in its interview that Facebook advertising gets the credits from online transactions where their ads are not purchased on its platform. Very few companies were told to completely shut down the advertisement on Facebook to see the boycott impact on their business. This was the first time all companies were agreed to do this.
However, the impact of the boycott on companies’ revenues is not that bad which was expected before, because they lost a big platform for the promotion of their products.
This boycott also put an impact on the revenue of Facebook, CFO of Facebook Dave Wehner told that their revenue despite this boycott increased up to 10 percent.
