Advertisers Can't Abandon Facebook

Conventional wisdom says Facebook is toast because of a boycott by big marketers, but the social media site will defy its critics again.
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Have you been following the latest Facebook ( (FB) - Get Report) saga? You know, the bit about big advertisers leaving and a frustrated chief executive Mark Zuckerberg telling confidants that he’s not sure why all of this is happening, given the safeguards the social media site is imposing against hate speech.

The big investment idea right now is that Facebook is dead money. After all, what is an ad-based media platform without advertisers?

The problem with that idea is advertisers are not really going anywhere. They’re like Richard Gere in Officer and a Gentleman. They will never quit Facebook. They can’t.

Investors should not be fooled. Buy Facebook shares into weakness.

I understand, there is a lot of noise out there. Many long-time critics are gleeful that the great day of reckoning has finally arrived. And efforts at Facebook to clean up posts riddled with hate are wanting at best.

Kara Swisher at the New York Times compared Zuckerberg doing the right thing to her adolescent son putting the dirty dishes in the dishwasher. Doing what is right is not a favor.

Investors should focus on the fact that the firms that do the most spending on Facebook are not leaving. CNN ran a story about only 3 of the top 25 firms pausing spending on the social media site. Three, and they’re only pausing spending.

There is good reason. Digital ads are measurable and, in a mobile first, digital world, they reach audiences advertisers need to sell their clients products and services. Facebook has 2.3 billion active users. You can see where this going.

Advertisers are not going to leave Facebook. They've got nowhere to go.