Starbucks, Pepsi and Adidas. These are just three big advertisers who have removed their Facebook ads in the last few days. The results were sharp to feel themselves: Facebook shares fell 1% on Monday morning, after falling 8.3% on Friday. According to Business Insider, there are approximately 60 billion in market value.
Advertisers are beginning to turn their backs on Facebook, at a time when the need for more muscular action by social networks is discussed to counter misinformation and hate speech. The platform, which has more than eight million advertisers, has just lost some of the big names, such as Starbucks, Pepsi, Coca-Cola, Unilever, Ford, Adidas and HP. Some of these companies have also withdrawn their advertisements from other platforms.
Despite having a large number of advertisers, most of them are small and medium-sized companies, investing far less than the brands that are now boycotting Facebook. The "good" news for Mark Zuckerberg's company is that most of these companies will boycott advertisements for just one month throughout July.
The news shook the market and after two days slump, it is estimated that the social network has lost $ 60 billion in market value .
Facebook has no ethical code?
The losses are negative, but, according to Daniel Salmon, an analyst at CMO Capital Markets, who spoke to Business Insider, the boycott won't significantly affect Facebook's revenue. The greatest financial impact could come from the greatest pressure to improve security in the next few years.
David Cumming of Aviva Investors is not so optimistic and believes the boycott could harm Mark Zuckerberg's social network. The loss of trust and the belief that Facebook is not driven by a "moral code" could destroy the business, he told the BBC on Monday.
Companies are starting to ask Facebook more: they want better responses to disinformation and hate speech. The stage shows that it wants to take a step in that direction, but, according to these advertisers, it is still too low. For example, on Friday, Mark Zuckerberg's social network made it known that it would begin categorizing publications by politicians who violate the rules of the platform, especially those who sponsor fake news.
A situation similar to Twitter, which began with disinfection publications (with a clear target, Donald Trump) and the identification of Reddit, which on Monday closed the "The_Donald" platform in support of the US president due to complaints. Hate speech and harassment.
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