Advertisers concerned about hate speech and misinformation on Facebook already spoke on Tuesday with other executives from the social media giant, including Carolyn Everson, vice president of global business solutions, and Neil Potts, public policy director, according to Reuters, with three participants on the calls revealing the news.
More than 400 organizations, including Unilever (UN) - Get Report and Starbucks (SBUX) - Get Report, have vowed to halt advertising on the platform starting Wednesday for at least a month to protest the social media company’s failure to erase hate speech and deal with misinformation on its pages.
On Tuesday’s calls, the executives didn’t list any new ways in which they would get rid of hate speech, the Reuters sources said. Instead, they simply referenced recent changes they've made to take down voting misinformation and label posts that violate its policies.
“It’s simply not moving,” an executive at a major ad agency told Reuters, regarding the conversations.
U.S. civil rights groups, such as the Anti-Defamation League, NAACP and Color of Change, are leading the movement. They have issued 10 demands, including giving refunds to brands whose ads appear adjacent to offensive content.
The ad boycott, while rich in symbolism, probably won’t have much impact on Facebook’s bottom line. The top 100 advertisers on the platform accounted for just 6% of Facebook’s $71 billion in total ad revenue for 2019.
More than 70% of Facebook’s ad sales come from small businesses. Advertising accounts for 98% of Facebook’s total revenue.
“Their intentions are good, but their judgment is poor,” David Jones, a top advertising executive, said of Facebook to The New York Times.
Facebook shares recently traded at $232.15, up 2.2%. They have rebounded more than 6% this week after falling roughly 8% on Friday as the boycott gained momentum.