Advertising execs break down why TikTok, Amazon, and TV networks will be the biggest winners of the growing Facebook boycott

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The number of advertisers supporting a temporary boycott of advertising on Facebook and onwards is growing with big names like Microsoft, Starbucks, Ford and Clorox getting on board.
Media buyers said companies including Amazon, TV networks, and TikTok stand to be the biggest beneficiaries of the boycott as brands look for places to park their dollars.
Still, many brands are struggling as their sales have been crushed by the coronavirus and are not ready to leave Facebook.
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The momentum around quitting Facebook is gaining steam with a growing number of advertisers like Starbucks, Microsoft, Ford, and Procter & Gamble’s Clorox said they would halt their spending there.

Facebook is facing pressure for how hate speech and toxic content spreads on its platform, leading civil rights groups to call for an ad boycott.

The stakes vary wildly for brands. According to data from research and analytics firm Pathmatics, Starbucks has spent an estimated $18.9 million on Facebook ads in the US this year so far to Coca-Cola’s $1.8 million.

Facebook leaders have set up phone calls, sent emails urging advertisers to not pull their money, and promised to submit to audits.

But agency executives say advertisers now plan to reallocate their Facebook dollars elsewhere. North Face, for one, said it would redirect spend to Google and Pinterest, among others.

“What we’ve been telling clients is that it’s a little hypocritical if you boycott and subscribe to these demands, these demands are not fully met, and then you continue to advertise in August,” said Barry Lowenthal, CEO of The Media Kitchen. “It’s more pragmatic to help clients figure out an alternative strategy.”

“This almost gives almost any brand or agency license to break out out of the cycle that exists with the very well-established duopoly in advertising,” said Mike Dossett, VP and director of digital strategy at ad agency RPA.

Google and Amazon could be big winners of the boycott

Ad buyers said Google and Amazon would benefit because performance-based advertisers need to keep selling stuff.

Affiliate marketing platforms like Amazon, Walmart and networks of retailers could also benefit from advertisers that need to drive sales, said Tim Lardner, client strategy partner at ad agency PMG.

Marketers that are already struggling from the coronavirus feel comfortable redirecting that spending to Google.

Snapchat and TikTok’s growth will intensify — but the latter faces greater scrutiny

Among platforms, TikTok and Snapchat are likely to be winners of the boycott.

Benjamin Arnold, managing director of social marketing agency We Are Social, said platforms that spoke out and took action on misinformation and hate speech will benefit, and Snapchat stopped promoting Trump’s account in Discover on June 3 due to concerns over racial violence.

Snapchat also is a safer place for brands than other platforms because it can keep ads away from offensive material, said Noah Mallin, brand strategy chief at Gen Z media company IMGN. Snapchat also has a growing daily active user base, up 20% in the first quarter of 2020.

Brendan Gahan, partner and …read more

Source:: Business Insider

      

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