Facebook Boycott Is Taking Over In July By Major Companies
At least 10 major companies are joining forces for Facebook boycott. The companies include REI, Patagonia, and Unilever’s Ben & Jerry’s. According, to the companies they are agreeing with the Facebook boycott in effort to encourage Facebook to stop posts of hate and violence on its service.
Magnolia Pictures, Pepsi, and Upwork have also stated they won’t buy ads on Facebook at least through July as part of a boycott dubbed #StopHateforProfit. Last week, civil rights groups called on major advertisers to pause Facebook ad campaigns in response to the social network’s policies on racist and violent content.
The Facebook boycott has caused a dip on the platform as shares closed 3.39% lower on Wednesday at $234.02.
Scott Kessler, global sector lead in technology, media and communications at Third Bridge implies that the boycott is likely temporary. “Temporary in nature. That doesn’t mean they won’t end up being permanent,” he added. “It does seem, at least initially, that it’s a very small number of companies. But it is a significant action and gesture for some of them for sure.”
The peaceful protest grew as Facebook refused to sensor President Trumps post referring to shooting protestors. However, Facebook did remove Trump’s campaign ads that contained hated symbols, citing a policy barring “organized hate.”
Kessler believes that the Facebook boycott will not have as major of an impact as it could because medium sized businesses would still use the platform for Facebook ads. “I think it’s one of the reasons why Facebook pretty notably stepped up to support SMBs, and it’s one of the reasons why they rolled out Facebook Shops when they did,” he said.
On a year to date basis Facebook sales are up by 11%. The company has been looking into other avenues to maintain such as investments in video call features and more.
Other reasons some business may not join the boycott is because Facebook began April by offering grants to businesses of 100 million dollars due to covid 19. The company has also brought on Facebook shop changes to help with the economical sales. The new feature allows businesses to more easily list products across Facebook and Instagram.