Being boycotted by 100 brands – Facebook is in danger of collapse?

The campaign to boycott Facebook ads is still going on and more big brands are involved. Facebook at risk of collapse as ad revenue plummets? Let’s find out why and how Facebook will affect it.

Reality:

Near the 100 brands From large to very large join the campaign to boycott Facebook ads:

• Unilever announced to stop advertising until the end of 2020
• Honda, Cocacola, Ford, Starbucks announced to suspend advertising for at least 30 days
• Yesterday, Adidas and Volkswagen (Owners of Audi, Porsche, ..) also joined the TEMPORARY boycott list.

Reason:

Differences in opinion between Facebook and brands on negative news.

– Facebook believes that they should not be the judge and decide what is true and what is false, especially political news.

– Human rights organizations say that Facebook should be responsible for the information spread on their social networks. Facebook currently tolerates fake news and hate-inciting news, including posts by President Trump.

So human rights organizations created the campaign #StopHateForProfit to call for brands to boycott Facebook. The purpose of making Facebook lose revenue and be boycotted by 100 brands and put Facebook at risk of collapse?

Impact on Facebook:

In terms of revenue, this campaign doesn’t really affect too much to Facebook’s business performance. Although there are nearly 100 major brands participating in the campaign, these brands only contribute a small part of Facebook’s ad revenue structure, somewhere around 6%. Small and medium businesses are the customer group that contributes the most revenue to Facebook.

It is a fact that small businesses have a very large share of their budgets spent on Facebook. Large enterprises allocate budgets to many different channels. Particularly in Vietnam, it can be clearly seen that small and medium enterprises such as Beauty Salons, Pharmaceuticals, and TMDT can spend much larger FB Ads budgets than other trillion corporations.

Not to mention, the Facebook boycott campaign is also limited to a month 7/2020. After this time, most of the brands participating in the boycott will have to return to the game with Facebook.

– The biggest impact of this campaign on Facebook is probably the value of the stock and the internal problems of Facebook. When the value of shares plummeted due to a wave of boycotts, CEO Mark Zuckerberg will be under great pressure with the shareholder council and Facebook is at risk of collapse.

Are Vietnamese businesses participating in the boycott?

In Vietnam, there are currently multinational companies such as Unilever also announced to stop Facebook advertising in July at the joint decision of Unilever worldwide. In addition, it will be difficult for businesses in the region to participate in this regard.

Topics about human right nice personal information security are very hot topics in western countries. However, in Vietnam, this topic is difficult to create a strong wave to attract people’s interest in business. Not to mention, this boycott campaign also has many political colors, when the content called for boycott is directly related to the US presidential campaign. This is a problem closely related to people of Western countries, not of Vietnamese people.

If more businesses participate in this campaign, is Facebook out of time?

The answer is are not. Facebook’s survival has never depended on advertisers. Although Facebook’s revenue comes from advertisers, for more than 10 years of operation, Facebook’s motto has always been to focus on users. Unless users boycott Facebook, that is the real disaster for this social network.

Once there are users, advertisers can never completely leave Facebook. The principle of Marketing is: Where the customer is, there must be marketing. So, if it still retains users, Facebook still exists. The possibility that Facebook is in danger of collapse is almost nil because advertising revenue is only one part of Facebook’s survival.

According to Thai Hoc – Vietnam eCommerce Community.