Will Brands Stop Facebook Advertising?
For now, Facebook is losing advertising revenue in the low seven digits as Mozilla “presses pause.” This may be the beginning of an exodus of marketing money from the social media giant and, perhaps, of users scared of their private data being used in ways they don’t like. But is it?
More than 2 billion people use Facebook each month and, while some say they’ll leave due to the current controversy about Cambridge Analytica using data from 50 million Facebook users in order to psychographically target voters for the Trump campaign, it doesn’t appear as though they have. And so far, brands appear to be advertising in order to stay in front of those consumers.
So will brands stop Facebook Advertising? That may be more difficult than it sounds.
As for leaving Facebook, that may be difficult for users whose other apps require a Facebook login. Plus, a New York Times article makes the point that even when users think they’re leaving Facebook behind by going to WhatsApp or Instagram, they don’t realize Facebook owns those properties. And often, marketers advertising with Facebook do so on all of its properties.
But, as Mozilla CMO Jascha Kaykas-Wolff said on public radio yesterday, Mozilla is in talks with Facebook about user data privacy. And those advertising dollars do seem to have influence. Facebook’s stock also took a hit yesterday.
We champion platforms and technologies that are good for the web *and* for people. We stand up for transparency & user control because they make the web healthier for us all.
That’s why we’re taking a break from Facebook.
More here: https://t.co/ofeyIwO1FN
— Mozilla (@mozilla) March 22, 2018
After P&G’s Marc Pritchard called for brands to demand more accountability, Facebook started adding more marketing metric oversight from third parties. After Unilever added ethics to that mission of vendor and agency accountability, there was also action.
Congress also wants accountability from Facebook, and officially requested Facebook CEO and co-founder Mark Zuckerberg testify before the House Energy and Commerce Committee, reported The Washington Post yesterday. Zuckerberg said it’s now not a question of whether the social media platform will be regulated, but how it will be regulated.
This controversy comes as the EU’s privacy regulations are coming on the books. As of May 25, marketers will need to be in GDPR compliance — meaning they’ll have to be careful about how they collect, use and share EU citizens’ private information. Facebook is no exception.
What do you think, marketers? Is this Facebook controversy within that call for action from brands? Is this different?
Please respond in the comments section below.