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Facebook: "Advertising boycott does not affect us"

Despite the July boycott of 1.000 major advertisers, the Facebook stated that his advertising business is doing well.

facebook boycott
Facebook: "Advertising boycott does not affect us"

In July, several large companies withdrew their ads from the platform because of the way Facebook handles content hatred and resentment.

Last quarter, Facebook collected ads income $ 18,3 billion, which exceeded their expectations investors. Of course, the company did not give numbers for July, which was the period when the boycott began.

He also said that the growth rate of advertising revenue for the first three weeks of July does not deviate much from the rest of the growth rate of revenue growth in 2020, of 10%. That is, despite the removal of many companies from Ben & Jerry's to Unilever, things are basically the same and Facebook expects it to stay that way.

«We expect that the growth rate of advertising revenue, from year to year for the third quarter of 2020, will be approximately similar to this performance July despite the boycott,Said Facebook.

«Some people seem to mistakenly assume that our business depends on some great advertisers, "He said Mark Zuckerberg on Thursday in a conversation with investors.

"Most of our business is serving small businesses."

The social media medium has 9 million advertisers, but does not specify what percentage of these advertisers are small businesses or what percentage of their revenue comes from small businesses. According to Facebook, the majority of its advertisers are small and medium-sized enterprises, which may explain the earnings in the midst of the boycott.

Facebook: "Advertising boycott does not affect us"

However, the relationship that the advertisers have with Facebook is not as "cute" as the company executives describe. Facebook has made a number of changes to its algorithm over the past five years, with some changes favoring organic posts from friends and family, in relation to brand content. Each time, these changes led to the panic of advertisers, as their dollars could not reach the level they were in the past.

Like the rest of the world, advertisers do not have a complete picture of how algorithm Facebook, which means that marketing strategies depend on a company in which they have no control.

Of course, there are not many other places for companies to carry their ads, as Facebook offers a great way to reach social media users. In the days before the boycott, Facebook raised a total of 70% of the money spent on advertising, as well as the Google to Amazon.


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