Quick recap for those that don't know: there has been massive momentum to boycott advertising on the channel. Corporate juggernauts (hint: Unilever, Verizon, Coca Cola, Colgate-Palmolive to name a few) are pausing all advertising on the channel until Facebook cleans up its act (or for, like, 30 days - whichever comes first).
Facebook's 5 Year Review
The incredibly riveting chart at the bottom of this post is a 5-year look at Facebook's market performance. What can I say? I like a good chart.
You'll notice a couple of little drops and two BIG drops.
- Dips one and two are the Cambridge Analytica allegations and the resulting court decisions. Facebook lost $134 billion in value (more $$ than the annual GDP of 126 countries) and 87 million people left the platform. Facebook's come roaring back since this happened.
- The next deep drop we see is a combination of rising labour costs, rising ad costs, a $5bn payout to GDPR in Europe, and a shortage on ad space (ads got more expensive). This created the right conditions for a decline.
- The bext big drop is at the beginning of this year which is the pandemic.
- Right now, we're in another moment of decline and we'll see how far it goes really goes.
So is Facebook over? Seems unlikely.
- Of the companies that have joined the boycott so far, only three — Unilever, Verizon and the outdoor equipment retailer REI — rank among the top 100 advertisers on Facebook, according to data compiled by Pathmatics, a marketing intelligence firm. In 2019, Unilever ranked 30th, spending an estimated $42.4 million on Facebook ads. Verizon and REI were 88th and 90th, respectively, spending an estimated $23 million each.
- The highest-spending 100 brands accounted for $4.2 billion in Facebook advertising last year, according to Pathmatics data, or about 6% of the platform’s ad revenue.
Marketwatch also has a great article that describes what were seeing happen and the reality of it.
No matter what, Facebook remains a critical communication tool all over the world AND it has 1.2+ billion monthly active users, which makes the boycott effective, but hardly apocalyptic
It wouldn't be a week in social newsletter without Tik Tok. This week has been one of the toughest in its relatively short existence. From transparency to trash in the blink of an eye, here's the goods:
India, Tik Tok's biggest market, bans the app Apple discovered Tik Tok has been accessing your iPhones clipboard without your knowledge Anonymous puts Tik Tok on blast and tells everyone to delete Chinese malware app immediately.
I dunno about you, but I'm not about to spend a minute over my allotted 52-minutes/day.