Disney+, who is the biggest spender on Facebook marketing, now silently calls off the deal until further notice. Depriving Facebook of $210 million, which was initially spent in the first half of 2020, according to the WSJ.
Disney+ also cut ties with Facebook-owned Instagram advertisements for its subsidiary, Hulu. It spent $16 million from the span of April to June, according to Pathmatics. Disney+ has yet to comment on this. But it is evident that the decision came after the recent backlash Facebook received for their policies regarding hate speech and misinformation.
As the world mourns the events that took place after the police brutality, which cost George Floyd his life. The Black Lives Matter protests became the center of attention as they receive immense support from major brands globally.
Countless multinational brands like Microsoft, Starbucks, Coca-Cola, Unilever, Hershey’s, Honda, Verizon, etc. have already pledged to boycott Facebook advertisements. At the same time, Disney+ was the biggest spender of them after claiming Home Depot’s spot from 2019.
The ad boycott was organized by civil rights groups, Stop Hate For Profit including the NAACP and the Anti-Defamation League. A virtual Zoom meeting held between the groups and Facebook Executives, which came out as a disappointment for them as their demands did not meet any progress.
On the other hand, Facebook COO Sheryl Sandberg stated that the company “stands firmly against hate”. She also said that whatever changes made will not be because of their ad revenue, but because “it’s the right thing to do.”
Facebook also commented that it would work with major civil-rights groups and experts “to develop even more tools, technology, and policies to continue this fight.” They claim to have banned 250 White Supremacist groups across Facebook and Instagram. While investing billions of dollars in keeping the community safe and secure from any hate and backlash.
While Facebook generates revenue of $70 billion from their marketing campaigns, they may ban political advertisements for the electoral campaign of 2020. Facebook has yet to comment on this potential decision.