Top tier brands are boycotting Facebook over its handling of hate speech and misinformation.
They will stop running ads in the month of July.
Some names include: Unilever, Verizon, Starbucks, Diageo
How badly it will hurt Facebook?
Not much.
Why? Let’s understand Facebook’s business model.
Facebook makes money mainly from ads.
Isn’t that scary? What if top brands stop spending $$ on Facebook?
Well. Top 100 brands contribute to only 6% of the revenue.
Facebook makes all of its money from small and medium businesses
That is, a very long tail of customers (tens of thousands of advertisers)
And that’s difficult to disrupt.
