Advertiser Exodus Snowballs as Facebook Struggles to Ease Concerns
The ad boycott may ultimately deliver more of a hit to Facebook’s reputation than to its bottom line. The top 100 advertisers on Facebook spent $4.2 billion on ads last year, or roughly 6 per cent of the company’s total ad revenue, according to data cited in an investor note from Stifel. More than 70 per cent of Facebook’s ad revenue comes from small businesses.
Yet the big-name brands that have pulled back are recognizable and may create a trickle-down effect, analysts said.