The Facebook advertising boycott campaign is still going on and more big brands are participating. Is Facebook at risk of collapse when advertising revenue declines sharply? Let's find out the causes and how Facebook will affect it.
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Current situation:
Near the 100 brands from large to very large participating in the Facebook advertising boycott campaign:
- Unilever announced to stop advertising until the end of 2020
- Honda, Cocacola, Ford, Starbucks announced a pause in advertising for at least 30 days
- Yesterday, Adidas and Volkswagen (Owner of Audi, Porsche, etc.) also joined the TEMPORARY boycott list.
Reason:
Differences in opinion between Facebook and brands regarding negative news.
– Facebook believes that they should not be the ones to judge and decide what is true information and what is false information, especially news related to politics.
– Human rights organizations say that Facebook needs to be responsible for the information spread on their social network. Facebook is currently tolerating fake news and hateful news, including posts by President Trump.
So human rights organizations created the campaign #StopHateForProfit to call on brands to boycott Facebook. The purpose is to cause Facebook to lose revenue and be boycotted by 100 brands and put Facebook at risk of collapse?
Impact with Facebook:
In terms of revenue, this campaign Doesn't really affect too much to Facebook's business performance. Although there are nearly 100 big brands participating in the campaign, these brands only contribute a small part of Facebook's advertising revenue structure, somewhere around 6%. Small and medium-sized businesses are the customer group that contributes the most revenue to Facebook.
It is a fact that small businesses have a very large proportion of their budget for Facebook. Large businesses allocate budget to many different channels. Particularly in Vietnam, everyone can clearly see that small and medium-sized enterprises such as Beauty Salons, Pharmaceuticals, and E-Commerce can spend much larger FB Ads budgets than other trillion-dollar corporations.
Not to mention, the Facebook boycott campaign is only limited to a month July 2020. After this time, most brands participating in the boycott will have to return to the game with Facebook.
– The biggest impact of this campaign on Facebook is probably Facebook's stock value and internal problems. When the stock value drops sharply due to the boycott wave, CEO Mark Zuckerberg will be under great pressure with the board of shareholders and Facebook is at risk of collapsing.
Do Vietnamese businesses participate in the boycott?
In Vietnam, there are currently multinational companies such as Unilever also announced to stop Facebook advertising in July according to a joint decision of Unilever globally. Additionally, it will be difficult for businesses in the region to engage on this issue.
Topics about human rights nice personal information security are very hot topics in Western countries. However, in Vietnam, this topic is very difficult to create a strong wave to attract people's attention to businesses. Not to mention, this boycott campaign also has many political colors, as the content being called for boycott is directly related to the US presidential election campaign. This is an issue close to the people of Western countries, not the people of Vietnam.
If more businesses participate in this campaign, will Facebook be out of date?
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 principle has always been to focus on users. Unless users boycott Facebook, that will be a real disaster for this social network.
Once there are users, advertisers can never completely leave Facebook. The principle of Marketing is: Wherever the customer is, there must be Marketing. Therefore, if Facebook can still retain users, Facebook will still exist. The possibility that Facebook is at risk of collapsing is almost zero because advertising revenue is only a part of Facebook's existence.
According to Thai Hoc – Vietnam eCommerce community.
