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| Could a boycott kill Facebook? | Could a boycott kill Facebook? |
| (32 minutes later) | |
| Boycotts can be extremely effective - as Facebook is finding out. | Boycotts can be extremely effective - as Facebook is finding out. |
| In the late 18th century, the abolitionist movement encouraged British people to stay away from goods produced by slaves. It worked. Around 300,000 stopped buying sugar - increasing the pressure to abolish slavery. | In the late 18th century, the abolitionist movement encouraged British people to stay away from goods produced by slaves. It worked. Around 300,000 stopped buying sugar - increasing the pressure to abolish slavery. |
| The Stop Hate for Profit campaign is the latest movement to use boycott as a political tool. It claims that Facebook doesn't do enough to remove racist and hateful content from its platform. | The Stop Hate for Profit campaign is the latest movement to use boycott as a political tool. It claims that Facebook doesn't do enough to remove racist and hateful content from its platform. |
| It's convinced a series of major companies to pull its advertising from Facebook - and some other social media companies - including Coca-Cola, Unilever and Starbucks. | |
| Loss of trust | Loss of trust |
| Can that boycott hurt Facebook? The short answer is yes - the vast majority of Facebook's revenue comes from ads. | Can that boycott hurt Facebook? The short answer is yes - the vast majority of Facebook's revenue comes from ads. |
| David Cumming from Aviva Investors told the BBC's Today programme that the loss of trust, and a perceived absence of a moral code, could "destroy the business". | David Cumming from Aviva Investors told the BBC's Today programme that the loss of trust, and a perceived absence of a moral code, could "destroy the business". |
| On Friday, Facebook's share price dropped by 8% - making chief executive Mark Zuckerberg, theoretically at least, £6bn poorer. | On Friday, Facebook's share price dropped by 8% - making chief executive Mark Zuckerberg, theoretically at least, £6bn poorer. |
| But whether this could be bigger - an existential threat to Facebook's long-term future - is far less clear. | But whether this could be bigger - an existential threat to Facebook's long-term future - is far less clear. |
| First of all, this isn't the first boycott of a social media company. | First of all, this isn't the first boycott of a social media company. |
| In 2017, major brand after major brand announced they would stop advertising on YouTube - after ads were placed next to racist and homophobic videos. | In 2017, major brand after major brand announced they would stop advertising on YouTube - after ads were placed next to racist and homophobic videos. |
| That particular boycott is now almost totally forgotten. YouTube tweaked its ad policies, and three years on YouTube's parent company Google is doing just fine. | That particular boycott is now almost totally forgotten. YouTube tweaked its ad policies, and three years on YouTube's parent company Google is doing just fine. |
| And there are more reasons to believe this boycott isn't as damaging to Facebook as you might think. | And there are more reasons to believe this boycott isn't as damaging to Facebook as you might think. |
| Lots of low spenders | Lots of low spenders |
| Firstly, many companies have only committed to a one-month boycott in July. | Firstly, many companies have only committed to a one-month boycott in July. |
| Secondly, and perhaps more significantly, much of Facebook's advertising revenue comes from thousands and thousands of small- to medium-sized businesses. | Secondly, and perhaps more significantly, much of Facebook's advertising revenue comes from thousands and thousands of small- to medium-sized businesses. |
| CNN reports that the highest-spending 100 brands accounted for $4.2bn in Facebook advertising last year - or about 6% of the platform's ad revenue. | CNN reports that the highest-spending 100 brands accounted for $4.2bn in Facebook advertising last year - or about 6% of the platform's ad revenue. |
| So far, the vast majority of medium-sized companies have not signed up. | So far, the vast majority of medium-sized companies have not signed up. |
| Mat Morrison, head of strategy at advertising agency Digital Whiskey, told me there's a huge number of smaller businesses that "can't afford not to advertise". | Mat Morrison, head of strategy at advertising agency Digital Whiskey, told me there's a huge number of smaller businesses that "can't afford not to advertise". |
| He says that for smaller businesses - which are priced out of advertising on TV - cheaper and more focussed ads on platforms like Facebook are essential. | He says that for smaller businesses - which are priced out of advertising on TV - cheaper and more focussed ads on platforms like Facebook are essential. |
| "The only way our business works is having access to these highly targeted audiences, that aren't mass media audiences, so we'll continue to advertise" Morrison says. | "The only way our business works is having access to these highly targeted audiences, that aren't mass media audiences, so we'll continue to advertise" Morrison says. |
| In some ways Facebook looks like a good choice of company to lobby. The structure of Facebook gives Mark Zuckerberg a huge amount of power to affect change. If he wants something, he'll get it. | In some ways Facebook looks like a good choice of company to lobby. The structure of Facebook gives Mark Zuckerberg a huge amount of power to affect change. If he wants something, he'll get it. |
| You only need to change the mind of one man. | You only need to change the mind of one man. |
| But the reverse is also true. Shareholders aren't able to put pressure on Mr Zuckerberg in the same way as other companies. If he doesn't want to act, he won't. | But the reverse is also true. Shareholders aren't able to put pressure on Mr Zuckerberg in the same way as other companies. If he doesn't want to act, he won't. |
| So far though, he has shown signs he's prepared to move. On Friday, Facebook announced it would begin to tag hateful content - and look out for further announcements this week. | So far though, he has shown signs he's prepared to move. On Friday, Facebook announced it would begin to tag hateful content - and look out for further announcements this week. |
| These changes won't be enough to make Stop Hate for Profit go away though. | These changes won't be enough to make Stop Hate for Profit go away though. |
| This year is going to be a rocky year for all social media companies. Facebook is by no means the exception. But companies will always be guided by their balance sheets | |
| If the boycott drags on into the autumn - and if more and more companies sign up - this could be a defining year for the social network. | If the boycott drags on into the autumn - and if more and more companies sign up - this could be a defining year for the social network. |