The Hidden Reason Why Companies Are Cutting Facebook Spending (It's Not Fake News)
Facebook (NASDAQ: FB) was already facing difficulties from reduced marketing budgets as a result of COVID-19 before large public companies started announcing that they would pause advertising on Facebook in support of the Stop Hate for Profit campaign, which criticizes Facebook for not doing enough to stop hate speech on its site.
Most of Facebook's revenue comes from small businesses. Still, large corporations made up nearly 25% of annual revenue for the company in fiscal 2019. Understandably, Facebook is not taking the changes lightly. It set up a meeting with the leaders of the boycott, which CEO Mark Zuckerberg and Chief Operating Officer Sheryl Sandberg attended, to work toward a solution. When companies such as Starbucks, Coca Cola, and most recently Disney stop advertising on your site, it is in your interest to listen to their concerns. However, there may be a hidden reason why these companies are reducing advertising on Facebook.
Major corporations are pausing spending on Facebook. Image source: Facebook.
Source Fool.com
