What Are the Implications of the Facebook Ad Boycott?

Share on facebook
Share on twitter
Share on linkedin

If you are following the news and happenings in the digital advertising industry, you would probably know that many big brands are now distancing themselves from Facebook. In the past few weeks alone, major brands, such as Disney, Lego, Mars, Unilever, Microsoft, Coca-Cola, Volkswagen, and Diageo, have taken part in the Facebook ad boycott.

Most of it is fueled by the “Stop Hate for Profit” campaign, which gained a huge following recently with people calling organizations and businesses to stop advertising on Facebook due to the platform’s refusal to do anything about fighting racial injustices in America. To date, the social media giant lost as much as US$7 billion following the boycott, as reported by Bloomberg. If brands don’t want to
According to Facebook CEO Mark Zuckerberg, their lukewarm response to hate speech is to preserve neutrality and free speech. His reason, however, is not enough to continue attracting marketers.

 

Impact on Organizations

Time and again, social media has proved to be a powerful tool that marketers can leverage. When these platforms, however, receive backlash from controversies, it can also significantly affect campaigns. When people no longer use the platform, there would no longer be audiences on the receiving end, and efforts will become futile. Plus, they also run the risk of tarnishing their brand names should they continue to advertise on the platform, so it becomes a risky move for them. This is the reason why some big-name brands are pausing their campaigns.

 

Impact on Publishers

When it comes to publishers, they should use this golden time to swing the context back to advertising. Publishers should take this opportunity to gain ground once again, especially those that use Facebook to acquire new users. Now that Facebook is facing backlash, they need to use this time to do a careful assessment of how and where they should put their marketing budgets to showcase their values as a company, such as exploring other platforms, such as funding in-app advertisements.

Publishers can also take this time as an opportunity to focus on monetization efforts to gain a good percentage of that ad money that’s being diverted to other channels. Exploring different ad formats and ways to reach new audiences, such as through hyper-casual games, can be a good strategy.

 

Impact on Advertisers

For advertisers, the Facebook ad boycott can mean looking at platform dependency. Advertisers should assess how substantial is their marketing campaign’s dependence on the social channel. They should realize that Facebook is not the only avenue out there. If they notice that their ads on Facebook are not getting any traction, they should have convenient ways of optimizing their campaigns on other platforms.

If you think about it, most of those big brands who paused spending on Facebook ads are now looking at increasing their ad spending on other channels such as Twitter, LinkedIn, Demand-Side Platforms (DSP), and ad exchanges. Testing out multiple platforms is a must.

The Facebook ad boycott is not the first storm that the social media giant had to weather. Still, the issue should be something that brands, publishers, and advertisers must look into to assess their values, ultimately defining their success.

If you want to learn more about how AlgoriX can provide significant alternatives for your advertising and monetization strategies, contact us.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Sign Up
to Our Newsletter

Get the latest company and industry updates.

Related Posts

Knowledge Hub: Ad Tech 101

What Is Ad Revenue? Ad revenue refers to the money generated through advertising. It is calculated by getting the ad impressions and multiplying it by

Knowledge Hub: Ad Tech 101

What Is Ad Revenue? Ad revenue refers to the money generated through advertising. It is calculated by getting the ad impressions and multiplying it by

Knowledge Hub: Ad Tech 101

What Is Ad Revenue? Ad revenue refers to the money generated through advertising. It is calculated by getting the ad impressions and multiplying it by

Our Partners

Subscribe to AlgoriX

Join Our Algorian Family

Pranav Kataria

Associate Director, Programmatic Strategy

As the Associate Director of Programmatic Strategy, Pranav brings over 8 years of experience in the adtech industry working with Publishers, DSPs, Agencies, and Advertisers from global regions to improve their monetization, performance, and strategies. With great understanding of the mobile market, his expertise lies in analytics, account management, strategy, and ad sales. With this refined skill set, he brings customer-centric mindfulness that enables growth and innovation.

Before joining AlgoriX, his keen business perspective and skills have earned him opportunities to work across different organizations and verticals in the advertising ecosystem; be it improving the processes, sales enablement, and managing client relationships.

Ray Xia

VP, AlgoriX Partner Studio

Ray Xia was a mainstay at Tencent Games, having worked at the company for 13 years. There, he took on various roles including backend developer, application development manager, and game producer. During this time, he actively participated in the development and operation of popular titles such as QQ Pet, QQ Pet Fight, and games involving the Naruto franchise. To date, these games have over 10 million daily active users. Through this rich well of experience he has accumulated covering all aspects of game development and operation, he aims to spearhead more creative endeavors via AlgoriX Studios.

Naomi Li

VP, Research and Development

Naomi Li has a decade’s worth of experience in research and development for the adtech industry. She started her career at Baidu where she was mainly responsible for the Automation Testing of the Baidu Fengchao Ad Search Engine. There, she focused on the fields of overlapping experiment infrastructure, rich media ads rendering, and ad antispam technology. Moreover, as part of Baidu’s International Group, she led the research and development of various monetization and advertising mechanisms for Baidu’s overseas app store, SDK, and AdNetwork. At present, she is responsible for the overall direction of AlgoriX’s R&D efforts, which include product planning, technical architecture design, and talent training.

Frederic Liow

SVP, Revenue Growth & Strategy

A veteran in the digital advertising industry, he began his career during the early days of the dotcom era. To date, his passion for the digital industry is still as strong as ever (and getting even stronger). Spanning twenty years of his digital career, he has worked for leading companies like Nielsen, MRM McCann, Omnicom Media Group, Millward Brown and Smaato. Currently, Frederic is the revenue officer for AlgoriX spearheading global revenue growth, business expansion and strategic partnerships. He has set up and built AlgoriX’s global mobile ad exchange, hiring talents, establishing best practices, and injecting global industry standards into the company. Prior to his current role, he was the Head of Demand for Smaato, overseeing the demand business and operations in APAC. Frederic is currently based in our Singapore HQ.

Xinxiao Guo

Chief Operation Officer

Equipped with a decade’s worth of experience in global product operation as well as a deep understanding of emerging markets, Xinxiao brings her expertise in mobile traffic monetization and programmatic advertising to the table. Before her role at AlgoriX, she was a core member of iQIYI’s research and development unit. After that, she moved to Baidu as Head of Programmatic Advertising.

At present, she is AlgoriX’s co-founder and Chief Operation Officer. Together with the team, she aims to help game developers effectively reach global audiences and implement better monetization strategies.

Ruiz Xie

Chief Executive Officer

With nearly 20 years of business experience, Ruiz Xie founded AlgoriX with the vision of creating a global advertising platform and entertainment ecosystem. Through AlgoriX’s services, he aims to create a more inclusive tech ecosystem by providing customized solutions that meet the needs of businesses at every stage. At the same time, through AlgoriX Studios and its third-party partner studios, the company is currently bringing to life a greater goal of providing a comprehensive entertainment platform for people worldwide, which covers games, IP, comics, movies, and more. At present, he leads nearly a hundred employees with concrete plans to expand the company by establishing more offices worldwide.

Before founding AlgoriX, Ruiz Xie joined CoreMail in 2002. There, he created the first Ajax version of the mailbox in China for NetEase, which was the largest Internet company in China at the time. After that, he joined Tencent in 2005 and contributed to the creation of Tencent Games while also building a large scale distributed storage system. In 2013, he moved to Baidu where he took part in developing Baidu International’s overall architecture and search advertising system. During his tenure, he was also the Chairman of the Baidu Global Technical Committee and Baidu’s chief architect.