Facebook CEO Mark Zuckerberg is reportedly unwilling to give in to the demands of the organizers of the massive global boycott campaign that has already cost the company billions of dollars in losses. Reports citing sources with knowledge in the matter claims that Zuckerberg is apparently not too concerned about the short-term effects of the dip in its advertising revenues.
Since the launch of the Stop Hate For Profit campaign a couple of months ago, more than 400 companies have already pulled their adverts from Facebook's platforms. Major brands such as Starbucks, Lego, and Coca-cola have removed their marketing campaigns from Facebook, stating that they will only resume advertising on the platform once it changes its policies to eradicate hate speech and fake news.
According to several sources, Zuckerberg is adamant about Facebook sticking to its guns. He reportedly stated that the company will not change its policies or approach just because a few companies have threatened to pull their advertisements. Zuckerberg, who called the threats as just a small percentage of the company's revenues, reportedly does not want to be pushed around to do something he doesn't want to do as it would only invite others to do the same down the road.
The campaign's organizers, which include civil rights groups such as the NAACP and the Anti-Defamation League, claim that their initiative is in fact severely hurting Facebook's bottom line. The groups claim that Facebook generates around 70 percent of its $70 billion annual revenue through advertising. With more and more companies joining its call, organizers believe that Facebook will eventually budge.
So far, Facebook has lost some of its biggest advertisers, which includes international consumer goods firm Unilever. Other major brands that have joined the campaign included Verizon Communications, VF Corp, Hershey, Magnolia, Dockers, Upwork, Lululemon, Eddie Bauer, and Ben & Jerry's.
Analysts predict that more companies will likely be joining the campaign as it would be a win-win situation for most of them. Companies that pull their ads will be saving on massive marketing costs, while at the same time generating positive publicity.
Meanwhile, Facebook's hard stance will likely result in negative sentiment towards its platform. Since the campaign was launched, Facebook's share prices have tumbled. Last week and this week's dip are estimated to have reduced the company's market valuation by more than $60 billion. On Thursday, the company's stock prices had recovered slightly, climbing by about 4.62 percent and closing at $237.55 per share.
