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Disney slashes ad spending on Facebook amid growing boycott

Civil-rights groups including the Anti-Defamation League and NAACP called on advertisers to pull ad spending for July, arguing Facebook hasn’t made enough progress enforcing its policies on hate speech and misinformation.

The entertainment giant, which is concerned about Facebook’s enforcement of its policies surrounding objectionable content, has paused advertising of its streaming-video service Disney+, the people familiar with the situation said. Disney has promoted the service heavily this year and it makes up a substantial portion of the company’s spending on marketing.

In the first half of this year, Disney spent an estimated $210 million on Facebook ads for Disney+ in the U.S., according to Pathmatics. Disney was the biggest ad spender during that period. Last year, it was the No. 2 Facebook advertiser in the U.S., behind Home Depot Inc.

Disney also paused spending on Facebook-owned Instagram for its sister streaming service Hulu, a person familiar with matter said. Hulu spent $16 million on Instagram from April 15 to June 30, Pathmatics said.

Other divisions of Disney are also re-examining their advertising on Facebook. Ads for ABC and Disney-owned cable networks such as Freeform have all but vanished from the site. While there are fewer shows to market during the summer, a person familiar with the matter said, it is unlikely that ads will return when new episodes need to be promoted, unless the social platform polices itself better.

Disney representatives had no immediate comment.

“We know we have more work to do,” Facebook said in a statement, adding that it would work with civil-rights groups, a leading ad trade group and other experts “to develop even more tools, technology and policies to continue this fight.”

Facebook has said it invests billions of dollars to keep its platforms safe and has banned 250 white-supremacist organizations from Facebook and Instagram. It also has said artificial intelligence helps it find nearly 90% of hate speech before anyone flags it.

Facebook has around $70 billion in annual advertising revenue, generated from over eight million advertisers. It would take a sustained boycott from its biggest advertisers to put a significant dent in the company financially.

Some marketers are reducing ad spending broadly because of financial pressures caused by the coronavirus pandemic. Many brands prefer not to cut Facebook ad spending, because they regard it as an especially effective marketing vehicle.

An expanded version of this story appears on WSJ.com.

Sours: https://www.marketwatch.com/story/disney-slashes-ad-spending-on-facebook-amid-growing-boycott-2020-07-18

Disney Was A Top Ad Spender on Facebook in H1

Pathmatics Top Advertisers on Facebook in H1 Sept2020Disney spent an estimated $211.8 million in Facebook advertising in the first half of this year, making it, by far, the top Facebook advertiser for the first two quarters of the year. This is according to a report [download page] from Pathmatics that looks at the top US Facebook advertisers in H1 and the effects the Facebook boycott has had on advertising on the platform.

Pathmatics reports that Disney increased its advertising spend on Facebook in H1 2020 by more than 2000% over the same period in 2019. The bulk of this spending was to promote its popular new streaming service, Disney+.

Spending less than half as much as Disney, Procter & Gamble, with its $81.7 million investment, is second on the list of Facebook’s top advertisers for H1, per Pathmatic’s data. The multinational CPG company is followed by the US Census Bureau ($51.5 million), Donald J. Trump for President, Inc. ($41.7 million) and Home Depot ($40 million).

Other big spenders on Facebook during the first half of the year included Purple Innovation ($33.3 million), HBO ($32.2 million), Wix.com ($32.1 million), CBS ($32.1 million) and Domino’s Pizza ($30.8 million).

While it was poised to benefit from advertisers’ move to invest more in social media as a result of the pandemic, Facebook felt a backlash from advertisers after refusing to change its policy regarding hate or violent speech on its platform as brands took a stand in support of equality and racial justice movements like Black Lives Matter,

As such, more than 180 brands reportedly boycotted the platform for the month of July as part of the #stophateforprofit campaign. This included Facebook’s top two advertisers – Disney and Procter & Gamble.

Per the report, ad dollars meant for Facebook during the boycott looked as though they were being shifted to YouTube, Twitter and Amazon. Disney, alone, increased its advertising spending on Amazon by more than 43x after July 1st.

The full report can be found here.

About the Data: Per the report, “Pathmatics spend estimates are based on our proprietary panel and spend methodology. They may not accurately estimate the spend for any advertiser.”

Sours: https://www.marketingcharts.com/digital/social-media-114732
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Disney Pulls Facebook Ads for Disney Plus Amid Boycott Over Hate-Speech Concerns (Report)

Disney, the biggest spender on advertising with Facebook in the first half of 2020, has reportedly suspended ads for Disney Plus and Hulu with the social giant.

Disney recently has “dramatically slashed” advertising with Facebook, the Wall Street Journal reported Saturday, citing anonymous sources. Disney did not immediately respond to requests for comment.

The move by Disney to scale back advertising with Facebook comes amid the #StopHateForProfit campaign. More than 1,000 companies have said they temporarily halted advertising with the social-media company in an attempt to coerce Facebook into dealing more forcefully with hate speech and harassment. Those include Unilever, Coca-Cola, Microsoft, Target, Starbucks, Verizon and Acura. The initiative is led by groups including the NAACP and the Anti-Defamation League.

A Facebook rep, asked about Disney’s reported ad pullback, said the company does not comment on individual advertisers. Regarding the company’s efforts in addressing hate speech, the spokeswoman said, “We invest billions of dollars each year to keep our community safe and continuously work with outside experts to review and update our policies. We know we have more work to do, and we’ll continue to work with civil rights groups, GARM [the Global Alliance for Responsible Media coalition], and other experts to develop even more tools, technology and policies to continue this fight.”

In the first six months of 2020, Disney spent $210 million on Facebook ads for Disney Plus in the U.S. alone, per ad-analytics firm Pathmatics as cited by the Journal. In addition to pulling Disney Plus ads from Facebook, the media conglomerate has dropped Instagram advertising for Hulu (which Disney now controls), according to the WSJ report. The report also said other Disney divisions are “reexamining their advertising on Facebook,” and noted that ads for ABC and Disney cable networks including Freeform “have all but vanished from the site.”

Facebook COO Sheryl Sandberg, in a July 7 post, said the company “stands firmly against hate.” But she claimed the boycott is not the impetus for Facebook’s decision-making: “We are making changes – not for financial reasons or advertiser pressure, but because it is the right thing to do.”

After nationwide Black Lives Matter protests following the police killing of George Floyd, Facebook has become a bigger target among critics who argue that the powerful internet company must do more to curb hate speech and disinformation spread across its networks.

A July 8 report by independent civil-rights auditors — who were enlisted by Facebook to review its policies and practices — faulted the company’s leaders for “vexing and heartbreaking decisions Facebook has made that represent significant setbacks for civil rights.” In response to the auditors’ report, Sandberg acknowledged that “we have a long way to go.”

“As hard as it has been to have our shortcomings exposed by experts, it has undoubtedly been a really important process for our company,” Sandberg wrote in a blog post.

Meanwhile, Facebook is considering a ban on political ads across its platforms, according to multiple media reports. Last month, the company began letting Facebook and Instagram users in the U.S. disable political ads.

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Sours: https://variety.com/2020/digital/news/disney-plus-pulls-facebook-ads-hulu-1234710445/

Walt Disney has "dramatically" slashed its advertising budget on Facebook and the company's Instagram platform, according to a report in the Wall Street Journal.

It's the latest setback for the social network, which is facing a growing advertising boycott over its policies and actions on hate speech on its platforms. The Journal, citing anonymous sources, said the time frame for Disney's pullback was not clear.

A number of large companies have distanced themselves from the social media platform as public pressure mounts for corporations to denounce racism, according to experts, while noting that it remains to be seen if the boycott persists.

More than 200 brands have joined an ad boycott against Facebook, including Adidas, Chipotle, Clorox, Coca-Cola, Conagra, Denny's, Ford, HP, Pfizer, Puma, Starbucks and Unilever.

The boycott stems from the #StopHateforProfit campaign, which calls on big brands to pull ad spending from Facebook. Civil rights organizations have called for an ad boycott of Facebook, saying the company doesn't do enough to stop racist and violent content. 

Other companies to halt their advertising on Facebook recently include Allstate, GEICO, Ikea, McDonald's and Walmart, according to Media Matters. Walmart was Facebook's second-largest advertiser last year, spending more than $145 million.

The campaign has so far cost Facebook at least $150 million, according to Oppenheimer analysts. That represents less than 1% of the $17 billion in ad revenue Facebook pulled in during the first quarter of 2020. 

Although the Journal report did not say whether Disney is officially joining the ad boycott, the entertainment giant was Facebook's biggest U.S. advertiser for the first six months of 2020, according to research firm Pathmatics. Disney spent $225 million for ads on Facebook and Instagram in the past six months.

Disney has not responded to requests for seeking comment. Last week, the entertainment giant finished reopening all its Orlando-based theme parks at Walt Disney World Resort. The openings came as coronavirus cases are surging in Florida.

Facebook said it does not comment on individual advertisers. The company said in an email to the Associated Press that it invests "billions of dollars each year to keep our community safe and continuously work with outside experts to review and update our policies."

According to the Journal report, Facebook executives met with civil rights groups earlier this month to discuss ad content. The civil rights groups walked away from the Zoom meeting believing Facebook wasn't doing enough to curb hate speech.

"We will be judged by our actions, not by our words, and are grateful to these groups and many others for their continued engagement," Facebook said in a statement after the meeting. "We know we have more work to do, and we'll continue to work with civil rights groups and other experts to develop even more tools, technology and policies to continue this fight." 

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Facebook ads disney

Disney has reportedly slashed its Facebook advertising budget amid a big-business boycott of the social-media platform

  • Disney has slashed its advertising budget on Facebook, The Wall Street Journal reports.
  • The news comes after more than 500 advertisers suspended ads on Facebook as part of an industry boycott of the platform over its stance on hate speech.
  • Disney was the single biggest advertiser on Facebook in the first half of this year, according to analysis by the research firm Pathmatics Inc.
  • Visit Business Insider's homepage for more stories.

Disney has slashed its advertising spend on Facebook and Instagram amid a boycott of the social-media platform led by civil-rights groups, The Wall Street Journal reports.

Sources familiar with the matter didn't say how much had been cut or when the decision was taken.

The sources said the Disney-owned streaming service Hulu had paused all advertising on Instagram, and one source said ads for its cable network shows were unlikely to return to Facebook after the summer TV advertising lull unless the social-media giant changed its policies.

The Facebook boycott was launched in June under the name Stop Hate for Profit by a coalition of civil-rights groups including the NAACP, Color of Change, and the Anti-Defamation League. It asks big companies to stop advertising on Facebook in an attempt to force the company to rethink its hate speech and misinformation policies.

A series of high-profile advertisers including Coca-Cola, Dunkin', Verizon, and more than 500 others have announced they are suspending their ads on the social network.

Disney has not officially announced any decision to reduce advertising spend, and was not immediately available for comment when contacted by Business Insider.

Analysis provided to The Journal by the research firm Pathmatics Inc. suggests Disney was the top advertiser on Facebook for the first half of this year, spending an estimated $210 million. It was the No. 2 spender in 2019, behind Home Depot.

Leaders from Stop Hate for Profit met with Facebook executives including Mark Zuckerberg on July 7 and came away unimpressed.

In a press call, the groups said that the meeting had been a "disappointment" and that of 10 recommendations they had put forward to Facebook, it had only partially addressed one: that the company should hire a C-suite-level civil-rights exec. Facebook said it would hire a civil-rights lead but did not commit to make the person a member of the C-suite.

Sours: https://www.businessinsider.com/disney-reportedly-slashes-facebook-ad-spend-amid-big-business-boycott-2020-7
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Disney Is Latest Company To Cut Facebook And Instagram Advertising – Report

The Walt Disney Co. is “slashing” its ad spending on Facebook, according to a report in the Wall Street Journal.

Disney becomes the latest company to withdraw ads from Facebook, which is suffering from a boycott by its advertisers over its policies on so-called “hate speech” and other content. But Disney was the leading advertiser on Facebook for the first six months of this year, according to estimates from Pathmatics Inc., so its withdrawal is particularly painful.

Such large companies as Starbucks, Unilever, Verizon, and Ford have also cut back or withdrawn advertising on the social media platform. The call for a boycott came from such groups as the Anti-Defamation League and NAACP, who claim Facebook has not enforced policies on so-called “hate speech” and misinformation.

Disney didn’t make a public announcement on its Facebook cutback, and the WSJ report cited anonymous sources. The report said the advertising that was pulled focused on the Disney+ streaming service. Disney+ has consumed the bulk of Disney marketing money this year, and the company spent an estimated $210 million on Facebook ads for the streaming service. Other divisions of Disney may also be cutting back, the WSJ report said.

Besides Facebook, Disney has also stopped spending on Facebook-owned Instagram for its Hulu service. The WSJ said Hulu spent $16 million on Instagram from April 15 to June 30, according to Pathmatics.

“We know we have more work to do,” Facebook said in a statement. It claimed it was working with civil-rights groups, a leading ad trade group, and others “to develop even more tools, technology and policies to continue this fight.”

Facebook claims it invests “billions of dollars” to keep its platforms safe, and banned 250 white-supremacist organizations from Facebook and Instagram. It also claims artificial intelligence helps discover so-called “hate speech” before anyone flags it.

Facebook has around $70 billion in annual advertising revenue, generated from over eight million advertisers.

 

Sours: https://deadline.com/2020/07/disney-latest-company-to-cut-facebook-instagram-advertising-report-1202989362/

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Sours: https://www.facebook.com/business/success/instagram/disney-france


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