More Than 1,000 Companies Boycotted Facebook. Did It Work?

Facebook said that the top 100 spenders contributed 16 percent of its $18.7 billion in revenue in the second quarter, which ended on June 30. During the first three weeks of July, Facebook said, overall ad revenue grew 10 percent over last year, a rate the company expects to continue for the full quarter.

The boycott complicated planning for advertisers. The Kansas-based digital agency DEG had “a whirlwind of a month” as its small to midsize clients grappled with whether they could reach enough customers without Facebook, said Quinn Sheek, its director of media and search. Facebook and its subsidiary Instagram make up more than a third of digital spending for DEG clients.

Of the 60 percent of DEG clients that joined the July boycott, four out of five are planning to return to Facebook in August, with many having “decided it’s too much for them during a difficult economic time to remain off,” Ms. Sheek said. Still, the boycott helped amplify discussion of toxic content on Facebook. The issue was raised in a congressional hearing this past week and in repeated meetings between ad industry representatives and Facebook leaders. In the face of the pressure, Facebook released the results of a civil rights audit last month and agreed to hire a civil rights executive.

“What could really hurt Facebook is the long-term effect of its perceived reputation and the association with being viewed as a publisher of ‘hate speech’ and other inappropriate content,” Stephen Hahn-Griffiths, the executive vice president of the public opinion analysis company RepTrak, wrote in a post last month.

In addition to the prevalence of hate speech on the platform, its critics have also focused on the company’s treatment of user privacy and foreign election interference.

Sheryl Sandberg, Facebook’s chief operating officer, said during the company’s earnings call that, like the boycott’s organizers, “we don’t want hate on our platforms, and we stand firmly against it.”

The ad industry was already in upheaval when the boycott began, as businesses closed, layoffs swept through the economy and homebound consumers slowed their shopping. Before they reduced spending on Facebook in July, advertisers like Microsoft, Starbucks, Unilever and Target took a temporary break from the platform in June, as many companies were reacting to pandemic-related marketing budget cuts and widespread protests over racism and police brutality. Disney’s spending on Facebook has mostly trended downward since late March, according to Pathmatics.

Last month, large advertisers like Procter & Gamble, Samsung, Walmart and Geico sharply curtailed paid advertising on Facebook without joining the official boycott, according to Pathmatics. Others, like Hershey and Hulu, beefed up their spending on alternate platforms like Twitter and YouTube.

Companies like Beam Suntory and Coca-Cola have vowed to continue pressuring Facebook, especially as the presidential race heats up. On Thursday, the ice cream company Ben & Jerry’s said it planned to keep withholding spending on product promotions through the end of the year “to send a message.”

The advertiser boycott “was a warning shot, an opening salvo,” said Jonathan Greenblatt, the chief executive of the civil rights group the Anti-Defamation League, which helped set up the ad boycott. Organizers and other groups now plan to expand the boycott into Europe, to include Facebook users, and to address other concerns, like the presence of child sexual abuse on the platform.

Half of the companies that work with the agency Allen & Gerritsen in Boston and Philadelphia participated in the boycott, said Derek Welch, its vice president of media. Many felt it was important to “do something that is meaningful and tangible in a sea of brands putting out very well-meaning statements,” he said.

Mr. Welch said the agency’s clients typically spend $150,000 to $200,000 a month total on Facebook. Several plan to continue boycotting.

“The big companies that have signed on have been great for visibility and getting the word out,” he said. “But this is really all about these small businesses in aggregate who are spending $30,000 here or $50,000 there, whose decisions wouldn’t normally make too much of a difference.”