Why are advertisers leaving Facebook? What's the Stop Hate for Profit campaign?

A Facebook boycott has gained huge momentum, with several companies choosing to no longer advertise on the social media platform. Are you wondering, ‘why are advertisers leaving Facebook?’. The Facebook boycott was announced on June 17, 2020. A coalition of advocacy groups led by the NAACP, Colors of Change and the Anti-Defamation League (ADL) launched a campaign called #StopHateforProfit. The campaign accused Facebook of allowing racist, violent and verifiably false content on its portal. The coalition group further requested companies to pause Facebook advertising in July.

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Companies leaving Facebook are dissatisfied with its permissive approach to problematic posts by the U.S President Donald Trump. Due to this, Facebook announced that it would label political speech that violates its rules. Further, Facebook will also adopt other measures to prevent the suppression of voters and the abuse of minorities. 

This campaign has come amidst the protests of George Floyd’s death in America. George Floyd was a 46-year-old black American who was killed in Minneapolis by a group of racist police officers. Corporates in the United States of America are now facing immense pressure to reaffirm commitment through racial justice initiatives.

As per reports, Facebook shares fell by 8.3% after the news of the Facebook boycott was released. This has cut the market share of Facebook by $56B.  Further Mark Zuckerberg’s net worth was also slashed by $7B.

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Companies leaving Facebook:

Here is a list of some of the biggest advertisers who left Facebook following the announcement of the Facebook boycott:

• Starbucks
•  Verizon
• Unilever
• Coca-Cola
•  Honda America
• Diageo

Starbucks:

The leading coffee giant Starbucks is one of the largest contributors to Facebook ads. As per reports, the coffee giant had spent about $95 million last year on Facebook ads.

Diageo

British multinational beverage alcohol company, Diageo has also withdrawn its advertisements from Facebook. As per reports, the multinational beverage alcohol company spent about $23 million on Facebook ads last year.

Some other companies who have boycotted Facebook advertisements are Levi Strauss and Patagonia.

The world’s largest advertiser, Procter & Gamble said that it would not boycott Facebook advertisements.

What does this mean for Facebook?

The Stop Hate for Profit campaign has cost Facebook some of its leading advertisers. If the boycott movement continues to persist, it will cost Facebook some of its most high-profile users as well. As per reports, Facebook earned more than $17 billion in advertising revenue in its first quarter. Since the social media portal has lost some of its biggest advertisers, it now relies on millions of smaller businesses who are mainly responsible for the sales of this social media giant.  

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Promo Image Source: Mark Zuckerberg's Instagram