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Disney Halts Ad Spending On Facebook: WSJ


07/19/2020


Disney Halts Ad Spending On Facebook: WSJ
According to a report published in the Wall Street Journal citing sources with information of the matter, the top advertiser on Facebook’s social media platform, Walt Disney Co., has “dramatically slashed” advertisement spending on the platform.
 
This move by the entertainment giant also coincides with the campaign to prod advertisers on Facebook to stop placing ads to force the social media giant to take proactive measures to prevent hate speech and misleading content. Other top advertisers on the platform including the likes of Coca-Cola Co. and Verizon Communications Inc. have stopped spending on ads on the platform. Other corporate giants in the US that have already joined the campaign and stopped spending on the platform include Starbucks Corp, Unilever Plc and Adidas AG.
 
For the first six months of 2020, Disney was the top advertiser on Facebook in the United States and had expended an estimated $210 million on ads just for Disney+, according to the Journal report quoting data from the research firm Pathmatics Inc.
 
The report however suggested that the time frame for Disney’s stopping of spending on ads on Facebook wasn’t clear. However there are some brands that have halted ad spending on Facebook for longer periods of time, said the Journal report. It also added that no public announcement about it was halting ads on the social media platform has been made by Disney. The report stated that the change in advertisement plans by the company had been made silently.
 
Disney has also halted spending on advertisements for its streaming service Disney+ and its Hulu streaming service on Instagram as well.
 
Previous reports suggested that there re lesser number of films with Disney to advertise and market for this summer because of the novel coronavirus pandemic related lockdown has caused delay in premiering of films. It is however unlikely that the company would restart spending on ad when new films need promotion unless some concrete measures are taken by the social platform and implements adequate polices to stop hate speech and misinformation, said the report quoting an unidentified source.
 
There were no immediate comments available from Disney on the matter.
 
On the other hand, Facebook said in a statement to the media that it knows it “has more work to do”.  
 
“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,” a Facebook representative said in an email statement to the media.
 
A meeting was held earlier this month between the organizers of the boycott Facebook campaign and Facebook’s Chief Executive Mark Zuckerberg about possible policy changes that the social media company can incorporate to meet the demands of the campaigners. After the end of the meeting, the organizers said that they saw “no commitment to action” from Facebook on the demands.
 
(Source:www.bloomberg.com)