Billions of dollars of its market value has disappeared and its chief executive officer has been bumped down a notch in his place among the world’s wealthiest.
But despite these big losses, Facebook is unlikely to suffer significant damage from the growing ad boycott over its policies to prohibit hate speech in its advertisements, say some marketing experts.
Indeed, some of the companies, depending on their size, could be hurting themselves more by limiting their exposure on the social media giant, suggest some industry experts.
“A few brands pulling their Facebook ads for a month will have little to no bearing on Facebook’s bottom line,” Mari Smith, co-author of Facebook Marketing: An Hour A Day, said in an email to CBC News.
And if small and medium businesses cut their ads altogether, even for one month, this could cause a massive loss of revenue for those business owners, Smith said.
“Joining the ad boycott would actually hurt their bottom line infinitely more than it would Facebook’s,” she said.
Coca-Cola, Starbucks are pulling ads
So far, a number of small- and medium-sized business, along with major corporations, including Verizon, Unilever, Starbucks, Best Buy, Coca-Cola, and The North Face, have said they will pull their ads from Facebook for the month of July. Canadian companies Lululemon, MEC and Arc’teryx have also joined the boycott.
WATCH | Canadian companies join Facebook ad boycott: