BLM boy­cott de­liv­ers 40pc hit to Face­book ad spend­ing

The Daily Telegraph - Business - - Technology Intelligen­ce - By Lau­rence Dodds in San Fran­cisco

FACE­BOOK’S Black Lives Mat­ter boy­cott caused ad­ver­tiser spend­ing to crash by more than 40pc in three days, ac­cord­ing to new data.

Fig­ures from the mar­ket­ing an­a­lyt­ics firm So­cialBak­ers show the av­er­age daily spend in North Amer­ica dropped from $260 (£207) on June 28 to just $152 on July 1, the first of­fi­cial day of the boy­cott.

To­gether with the Black­out Tues­day protest on June 2, boy­cotts ac­counted for the big­gest sin­gle-day drops in spend­ing this year, even in­clud­ing the first pan­icked months of the coro­n­avirus pan­demic.

Both events also cut the av­er­age “cost per click” of Face­book ad­verts in North Amer­ica by about a third, as a dearth of bid­ders in its au­to­mated auc­tion sys­tem drove prices down to lev­els last seen in March. But spend­ing al­ready ap­pears to be re­cov­er­ing, sug­gest­ing that no boy­cott has yet grown large enough to se­ri­ously threaten the com­pany’s bot­tom line.

Face­book shares fell by as much as 8pc in late June as the boy­cott picked up ma­jor back­ers such as Unilever and Coca-Cola, but re­turned to an all-time high on Tues­day.

Although ad­verts’ cost per click has not yet re­cov­ered, Face­book can still pros­per while prices are low be­cause many ad­ver­tis­ers sim­ply opt to get more mileage from the same level of spend­ing.

So­cialBak­ers’ data are drawn from pan­els of at least 200 ad­ver­tis­ers of var­i­ous sizes who use its an­a­lyt­ics ser­vice, pro­vid­ing a proxy for Face­book ad­ver­tis­ers as a whole.

Mark Zucker­berg, the Face­book chief ex­ec­u­tive, said last week that he be­lieved only a “small per cent” of its rev­enue was at stake.

Nev­er­the­less, civil rights ac­tivists vowed to keep up the boy­cott af­ter com­ing away “deeply dis­ap­pointed” from a meet­ing with Mr Zucker­berg and his lieu­tenants on Tues­day.

Yes­ter­day, the com­pany pub­lished the re­sults of a two-year self-com­mis­sioned au­dit of its civil rights record.

The au­dit found “se­ri­ous set­backs” that had marred the so­cial net­work’s progress on mat­ters such as hate speech, mis­in­for­ma­tion and bias.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.