More than 500 companies have kicked off an ad boycott intended to pressure Facebook into taking a stronger stand against hate speech. CEO Mark Zuckerberg has agreed to meet with its organizers next week.
FILE - In this Oct. 25, 2019, file photo, Facebook CEO Mark Zuckerberg speaks at the Paley Center in New York. On Wednesday, July 1, 2020, more than 500 companies kicked off an advertising boycott intended to pressure Facebook into taking a stronger stand against hate speech. Zuckerberg has agreed to meet with its organizers early the following week.
But whether Zuckerberg agrees to further tighten the social network’s carefully crafted rules probably boils down to a more fundamental question: Does Facebook need big brand advertisers more than the brands need Facebook? “Many businesses told us how they had been ignored when asking Facebook for changes,” campaign organizersBut Facebook’s already-tarnished public image may sustain more damage than its business. If the ad pause lasts one month, Citi Investment Research analyst Jason Bazinet estimates, the likely impact on Facebook’s stock will be $1 per share. Based on Wednesday’s closing price of $237.92, that’s a decline of less than half a percent.
While Facebook is making efforts to hear out its critics, it remains clear that ultimate decisions will always rest with its founder and CEO, who holds the majority of the company’s voting shares and could effectively run the company for life, should he desire to.“Data of past boycotts suggests the observable impact is relatively mild,” said Brian Wieser, global president of business intelligence at GroupM, advertising holding company WPP’s media agency arm.
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