4. Facebook boycott had little effect on revenue
The high-profile Facebook ad boycotts that began in June and ramped up in July, pressuring the social network to act more forcefully against hate speech, have so far not put much of a dent in Facebook's top or bottom lines, Axios' Sara Fischer reports.
Driving the news: Facebook beat Wall Street revenue expectations for the second quarter, and it said its ad business in the first three weeks of July grew at roughly the same pace as last year.
The big picture: It's hard for a boycott — even one that features 1,000+ prominent brands — to limit Facebook's income, which mostly comes from small businesses around the world that otherwise have few advertising options.
Catch up quick: The #StopHateForProfit boycott launched in June by civil rights activists got more than 1,000 brands to pull ad spend from Facebook and some other social media giants in July.
- While some brands, like Ben & Jerry's, say they are extending their boycotts further, many plan to resume spending with Facebook now that July is over.
By the numbers: In an earnings call with investors, Facebook's CFO David Wehner said that the company's top 100 advertisers contributed roughly 16% of its total quarterly revenue last quarter.
- He noted that this was a lower percentage from last year, meaning Facebook has been able to diversify even further away from relying on big brands.
Yes, but: The boycott still serves as a significant reputational problem for the tech giant, as it puts pressure on the company to address its shortcomings around hate speech.
What's next: Boycott organizers told Axios there's more to come from their campaign, which is beginning to extend overseas, but for the most part, the boycott will not continue into August.