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Sourced from CNA

REUTERS: A long list of companies have pulled advertising from Facebook Inc in support of a campaign that called out the social media giant for not doing enough to stop hate speech on its platforms.

The Stop Hate for Profit campaign was started by several US civil rights groups after the death of African-American George Floyd in police custody triggered widespread protests against racial discrimination in the United States.

Following are some of the companies that have decided to support the campaign:

Starbucks Corp

The US coffee chain said it would pause advertising on all social media platforms while it continues discussions internally, with media partners and civil rights organisations.

Unilever Plc

The consumer goods company said it will stop advertising on Facebook, Instagram and Twitter in the United States for the rest of the year, citing “divisiveness and hate speech during this polarised election period in the US.”

Adidas AG

The German sportswear giant said it and subsidiary Reebok will pause advertising on Facebook and Instagram globally throughout July.

Walt Disney Co

The media company will slash its advertising spending on Facebook, the Wall Street Journal reported, adding that the time frame for the pullback was not clear as some brands paused their ad spending for longer stretches.

Coca-Cola Co

The beverage maker will pause paid advertising on all social media platforms globally for at least 30 days, Chief Executive Officer James Quincey said in a statement.

Merck & Co

The drug maker said it was stopping ads on Facebook and Instagram and was monitoring the actions Facebook takes.

Target Corp

The retailer said it was pausing all ads on Facebook and Instagram throughout July and was re-evaluating its plans for the rest of the year.

Ford Motor Co

The No 2 US automaker said it would pause advertising on all social media platforms in the United States for 30 days, adding that it would evaluate such spending in other regions as well.

HP Inc

The computer maker said it was stopping US advertising on Facebook until the platform puts more robust safeguards in place against objectionable content. It added that it was reviewing its social media strategy across all markets and platforms.

Lululemon Athletica Inc

The yogawear maker said it would pause paid advertising on Facebook and Instagram.

Levi Strauss & Co

The denim maker said it and subsidiary Dockers would pause all ads on Facebook and Instagram, calling on the social media company to take actions to stop misinformation and hate speech.

Beiersdorf AG

The Nivea cream maker said it was pausing ads for all its brands on Facebook and Instagram throughout July.

Chipotle Mexican Grill Inc

Chipotle said it was temporarily pausing paid advertising on Facebook and Instagram starting Jul 1.

Diageo Plc

The world’s largest spirits maker will pause all paid advertising globally on major social media platforms from Jul 1.

Clorox Co

The bleach maker said it will stop advertising spending with Facebook through December.

Verizon Communications Inc

he telecom operator said it was pausing advertising until Facebook creates “an acceptable solution that makes us comfortable”.

The North Face

The outdoor brand, a unit of VF Corp, said it would pull out of all Facebook-owned platforms.

Ben & Jerry’s

The ice-cream maker said it would pause all paid advertising on Facebook and Instagram in the United States as of Jul 1

Magnolia Pictures

The film distributor and studio became the first Hollywood company to join the movement. The company said in a tweet it would stop advertising on Facebook and Instagram, starting immediately, through at least the end of July.

Patagonia

The outdoor apparel brand said it would pull all ads on Facebook and Instagram through at least the end of July.

Source: Reuters/ec

Feature Image Credit: REUTERS/Dado Ruvic/Illustration/File Photo

Sourced from CNA

By John Koetsier.

Facebook is one of the two most dominant companies in an $80 billion industry that impacts hundreds of billions of dollars, if not trillions, in consumer spend. But a huge percentage of that revenue is now at risk, thanks to an obscure privacy move by Apple at the company’s World Wide Developer Conference in June.

The move?

Deprecating a mobile device identifier called the IDFA.

It’s a super-geeky term in a super-geeky industry: mobile advertising. But it represents a sea change in how advertisers and ad networks target ads to consumers. Good targeting leads to relevant advertising and high returns for both the advertiser and the ad network.

Poor targeting? It’s literally worth 50% less by Facebook’s own numbers.

The IDFA is the Identifier for Advertisers, and in every existing version of Apple mobile operating system for iPhones and iPads, it’s visible to ad networks and mobile advertisers. Unless consumers opt out in a little-seen out-of-the-way setting, which only about 30% of iPhone users have bothered to turn off.

Facebook uses the IDFA — and the Android equivalent from Google, GAID — to accumulate data on what billions of people do in apps. Facebook then uses that data to target app install ads (ads that are aimed at getting you to install a new app or game). Because they have so much data via the IDFA, Facebook is likely to be able to find the people who are most likely to install the app and do specific things inside it.

Like register. Or buy something. Or complete a level in a game.

Here’s how Facebook describes the technology, called App Event Optimization:

“Using AEO, you could optimize your ads for an app event such as Achieve Level, so your ads would be shown to people who were likely to download your app and also achieve a new level within the game. You could also optimize for in-app purchases using the Purchase app event in AEO.”

At World Wide Developer Conference in June, Apple changed how the IDFA is set.

Rather than a global setting for all apps, buried somewhere in an iPhone’s settings, the IDFA will now be set for each app individually.

It will be set by active, required choice by consumers for each app they install, much like GDPR permissions on websites today, and people will choose whether to allow or deny permission to “track you across apps and websites owned by other companies.” Most mobile experts think this will get a 0-20% adoption rate. The high end of that range is probably generous.

The immediate result: tracking what people do in apps will become a lot harder. Probably, in fact, illegal, and likely impossible.

That’s what puts the first few billions of Facebook ad revenue at risk.

Mobile app installs is close to an $80 billion business in 2020, and estimated to hit almost $120 billion within two years. Facebook and Google own about half of the global digital ad industry in general, and are also the two most dominant players in mobile app installs, perennially featuring in the first or second place in industry charts for best performance.

Now here’s where it gets interesting.

As mobile expert Eric Seufert noted today, Facebook published a white paper just a month ago — shortly before Apple’s conference — that says personalized ads are twice as effective as non-personalized:

“We ran a test that constrained delivery to just mobile app install ads for a small portion of Audience Network Traffic, then compared personalized ranking to non-personalized ranking,” the white paper says. “We observed more than a 50% drop in publisher revenue between these two treatments, with no changes made to targeting.”

A 50% drop in return on ad spend might just mean a 50% drop in ad prices you’d be willing to pay.

Facebook generated almost $71 billion in ad revenue last year, and almost all of it was on mobile, where the IDFA and GAID can aid in ad targeting.

Less sophisticated targeting could easily mean less valuable advertising.

And the IDFA was just the first shoe to drop.

Seufert says that Google is likely to follow suit “within six months,” which would follow a trend. Apple created the IDFA to increase privacy and decrease use of hard-coded unchangeable device identifiers; Google followed suit. Apple killed the third-party cookie on the web with Intelligent Tracking Prevention; Google is following suit with Chrome.

If Google continues the trend and makes GAID opt-in in a similar way (basically designed to guide consumers to opting-out), that’s when the other shoe drops. Then Facebook’s not just out of luck on Apple mobile platforms; it also loses sophisticated tracking capability on Android as well.

That’s additional billions at risk.

Facebook has its software development kit in hundreds of thousands of apps, as I’ve mentioned before. The company could try to use that data source to aid in ad targeting. But it would be tough, because it’s not a given, standard, always-available option. And because based on what I’ve heard via those who have talked to Apple, that would violate a users’ don’t-track-me choice.

Interestingly, killing the GAID would harm Google’s advertising capabilities as well. But as the Android platform owner, Google is more likely to be able to come up with a solution that enables its own ad tracking while harming Facebook’s. Or, at minimum, harms itself less.

(At least, if it’s willing to take the antitrust heat on both sides of the Atlantic.)

This isn’t the first challenge ad networks have faced in targeting. The vast majority of ads used to be delivered with contextual targeting: getting a Wall Street Journal audience in the WSJ, for example. Only with tracking technologies like third-party cookies on the web and IDFA/GAID on mobile were ad networks able to assemble WSJ audiences off-platform, in Candy Crush or on The Enquirer, for instance.

That saved advertisers a lot of money, because ads on the WSJ are more expensive than ads in Candy Crush. But it also cost premium publishers a lot of money. And it cost consumer privacy by requiring tracking technologies.

GDPR, California’s Consumer Privacy Act, a general consumer feeling that tracking has gone too far, and now Apple’s disabling of the IDFA are likely returning us from tracking to more of a contextual model of advertising

And that threatens Facebook revenue, at least in the short term:

“Over the long term, I believe that Facebook will find a path to its current level of ad serving efficiency without needing advertising identifiers,” says Seufert. “But the content of its own white paper underscores very clearly how important personalization is for ad targeting, and IDFA deprecation damages Facebook’s ability to deliver that kind of personalization.”

About $10 billion in Facebook revenue might be at risk in the short term. If its ads lose relevance and therefore return poorly on advertisers’ investments, that $10 billion could turn into $5 billion pretty quickly.

Unless there’s no better game in town, or Facebook finds a way to make contextual targeting as powerful as tracking.

Feature Image Credit: BAREFOOT COMMUNICATIONS ON UNSPLASH

By John Koetsier

I  forecast and analyze trends affecting the mobile ecosystem. I’ve been a journalist, analyst, and corporate executive, and have chronicled the rise of the mobile economy. I built the VB Insight research team at VentureBeat and managed teams creating software for partners like Intel and Disney. In addition, I’ve led technical teams, built social sites and mobile apps, and consulted on mobile, social, and IoT. In 2014, I was named to Folio’s top 100 of the media industry’s “most innovative entrepreneurs and market shaker-uppers.” I live in Vancouver, Canada with my family, where I coach baseball and hockey, though not at the same time.

Sourced from Forbes

By MAX WILLENS.

Ad buyers are getting nervous about how crowded Facebook’s in-stream video program has grown lately.

Over the past month, the number of pages eligible to monetize their videos through Facebook’s in-stream ads program has leapt by more than 30%, with more than 24,000 pages joining the program in the past 30 days, according to a spreadsheet Facebook regularly updates for advertisers.

The pages include everything from prank video and meme accounts to mukbang pages, which offer videos of people eating gluttonous quantities of food, and they are part of a longer-term push by Facebook to home in on YouTube’s ad business.

All pages in the program are subject to an approval process and must adhere to the platform’s brand safety guidelines. But buyers say that the brand safety guard measures Facebook has added to its in-stream program lag behind YouTube’s, and many see the changes Facebook has made as more focused on maximizing inventory than providing a safe place for their clients’ spots.

“They’re prioritizing maximizing inventory at the expense of making it brand safe,” said Erica Patrick, vp of paid social at MediaHub. “You shouldn’t have to make a giant investment to get into brand-safe content.”

Two buyers pointed to the proliferation of viral videos in the in-stream program as examples of content that their clients would not want to appear beside.

Reached for comment, a Facebook spokesperson wrote that the growth of the in-stream program has been organic and said all pages are subject to approval and brand safety guidelines.

In the early days of Facebook’s video ad business, the only in-stream inventory available was on Facebook Watch, which Facebook tried to position as a source of high-end, original programming created by entertainment studios and media companies. Inventory from that programming is still available as part of Facebook Reserve, a separate stock of spots that carries a minimum investment of $100,000, one buyer said.

But that’s too expensive for most buyers, so Facebook has been expanding its supply of cheaper in-stream ads, which can be bought via auction. In the summer of 2018, Facebook expanded Watch by giving creators the opportunity to apply for Watch pages, before reversing course ten months later by phasing out Watch pages altogether.

Since then, the number of pages eligible for those in-stream ads has exploded. Over that same stretch, Facebook has made moves to shore up brand safety across its platform, including announcing the launch of video-level whitelists on Watch in May, along with the addition of a third brand safety partner, Zefr.

But content-level whitelisting is cumbersome and time-consuming, two buyers contacted for this said, adding that Facebook’s blacklisting capability, which are capped at 5,000 pages, is insufficient. “It’s always been an untenable proposition,” said one ad buyer who asked not to be identified.

Those issues were on buyers’ minds before the sharp surge in pages this past month. “The more pages you throw into the mix, [it] can be concerning,” said Callan Lynch, senior manager of paid social at media agency Assembly.

That surge is challenging, buyers say, because context matters more for in-stream ads than it does for other video ads shown in Stories, or in Facebook’s feed, said Lindsey Boan, director of media at the full-service agency Madwell.

“In-feed, in stories, you know the ads are not connected to the person or publisher,” Boan said. “But in-stream, that’s not inherent.

“If you’re a client who’s concerned with those things, you just don’t run on the platform,” Boan added. “It’s not typically included in our base buys, and we honestly stay away from it unless we need it.”

Ultimately, Facebook still delivers efficiencies in price and targeting that buyers are hard-pressed to find elsewhere.

“A view of the ad by the intended audience for the best price is our ultimate goal,” the first buyer said. “But there’s been an evolving conversation” about how suitable the program is, the buyer added.

By MAX WILLENS

Sourced from DIGIDAY

By Marc Bain.

Groceries and cleaning supplies aren’t the only things Amazon is selling during the pandemic.

The e-commerce giant is peddling plenty of advertising space to companies hoping to give their items prime placement in front of Amazon’s legions of shoppers. The demand has kept Amazon’s ad sales strong amid Covid-19, even as its big tech competitors in digital advertising, Google and Facebook, suffer slowdowns.

Those two companies have dominated the online ad market, accounting for roughly 61% of digital ad spending by one estimate. But Amazon has been making inroads in recent years, and Covid-19 has pushed companies to devote more dollars to retail media, according to market research firm Forrester.

“Retail media—which, in its simplest form, refers to digital ad placements on eCommerce websites bought by consumer goods brands to influence the customer at the point of purchase—is booming during the pandemic,” the firm said in an Aug. 12 report. “In fact, Amazon’s advertising revenue didn’t miss a beat in Q2, growing at 41% year over year, while Facebook recorded its slowest ad revenue growth since going public and Google’s ad revenue declined for the first time ever.”

Amazon doesn’t report advertising revenue separately, but it does report “other” sales that it explains “primarily includes sales of advertising services, as well as sales related to our other service offerings.” In the quarter ending June 30, those sales jumped to $4.2 billion, while Facebook’s and Google’s ad businesses struggled over the same period.

Amazon has defied a broader slowdown in digital advertising as companies in hard-hit industries such as travel cut their expenses and marketing budgets.

In its report, Forrester pointed to retail media benefiting from factors that include e-commerce adoption, the large budgets consumer packaged goods companies maintain for retail marketing, and the fact that more retailers are offering media platforms. CVS, for example, is said to be readying its own ad network, and Walgreens is testing digital displays on the doors of coolers in its stores.

Whether the shift of ad dollars toward retail continues may depend on how e-commerce fares as the pandemic plays out, and on advertisers’ willingness to move money out of Google and Facebook.

For now, at least, it’s another way that Amazon looks poised to emerge even stronger than before.

By Marc Bain.

Sourced from Quartz

By John Koetsier

Facebook is one of the two most dominant companies in an $80 billion industry that impacts hundreds of billions of dollars, if not trillions, in consumer spend. But a huge percentage of that revenue is now at risk, thanks to an obscure privacy move by Apple at the company’s World Wide Developer Conference in June.

The move?

Deprecating a mobile device identifier called the IDFA.

It’s a super-geeky term in a super-geeky industry: mobile advertising. But it represents a sea change in how advertisers and ad networks target ads to consumers. Good targeting leads to relevant advertising and high returns for both the advertiser and the ad network.

Poor targeting? It’s literally worth 50% less by Facebook’s own numbers.

The IDFA is the Identifier for Advertisers, and in every existing version of Apple mobile operating system for iPhones and iPads, it’s visible to ad networks and mobile advertisers. Unless consumers opt out in a little-seen out-of-the-way setting, which only about 30% of iPhone users have bothered to turn off.

Facebook uses the IDFA — and the Android equivalent from Google, GAID — to accumulate data on what billions of people do in apps. Facebook then uses that data to target app install ads (ads that are aimed at getting you to install a new app or game). Because they have so much data via the IDFA, Facebook is likely to be able to find the people who are most likely to install the app and do specific things inside it.

Like register. Or buy something. Or complete a level in a game.

Here’s how Facebook describes the technology, called App Event Optimization:

“Using AEO, you could optimize your ads for an app event such as Achieve Level, so your ads would be shown to people who were likely to download your app and also achieve a new level within the game. You could also optimize for in-app purchases using the Purchase app event in AEO.”

At World Wide Developer Conference in June, Apple changed how the IDFA is set.

Rather than a global setting for all apps, buried somewhere in an iPhone’s settings, the IDFA will now be set for each app individually.

It will be set by active, required choice by consumers for each app they install, much like GDPR permissions on websites today, and people will choose whether to allow or deny permission to “track you across apps and websites owned by other companies.” Most mobile experts think this will get a 0-20% adoption rate. The high end of that range is probably generous.

The immediate result: tracking what people do in apps will become a lot harder. Probably, in fact, illegal, and likely impossible.

That’s what puts the first few billions of Facebook ad revenue at risk.

Mobile app installs is close to an $80 billion business in 2020, and estimated to hit almost $120 billion within two years. Facebook and Google own about half of the global digital ad industry in general, and are also the two most dominant players in mobile app installs, perennially featuring in the first or second place in industry charts for best performance.

Now here’s where it gets interesting.

As mobile expert Eric Seufert noted today, Facebook published a white paper just a month ago — shortly before Apple’s conference — that says personalized ads are twice as effective as non-personalized:

“We ran a test that constrained delivery to just mobile app install ads for a small portion of Audience Network Traffic, then compared personalized ranking to non-personalized ranking,” the white paper says. “We observed more than a 50% drop in publisher revenue between these two treatments, with no changes made to targeting.”

A 50% drop in return on ad spend might just mean a 50% drop in ad prices you’d be willing to pay.

Facebook generated almost $71 billion in ad revenue last year, and almost all of it was on mobile, where the IDFA and GAID can aid in ad targeting.

Less sophisticated targeting could easily mean less valuable advertising.

And the IDFA was just the first shoe to drop.

Seufert says that Google is likely to follow suit “within six months,” which would follow a trend. Apple created the IDFA to increase privacy and decrease use of hard-coded unchangeable device identifiers; Google followed suit. Apple killed the third-party cookie on the web with Intelligent Tracking Prevention; Google is following suit with Chrome.

If Google continues the trend and makes GAID opt-in in a similar way (basically designed to guide consumers to opting-out), that’s when the other shoe drops. Then Facebook’s not just out of luck on Apple mobile platforms; it also loses sophisticated tracking capability on Android as well.

That’s additional billions at risk.

Facebook has its software development kit in hundreds of thousands of apps, as I’ve mentioned before. The company could try to use that data source to aid in ad targeting. But it would be tough, because it’s not a given, standard, always-available option. And because based on what I’ve heard via those who have talked to Apple, that would violate a users’ don’t-track-me choice.

Interestingly, killing the GAID would harm Google’s advertising capabilities as well. But as the Android platform owner, Google is more likely to be able to come up with a solution that enables its own ad tracking while harming Facebook’s. Or, at minimum, harms itself less.

(At least, if it’s willing to take the antitrust heat on both sides of the Atlantic.)

This isn’t the first challenge ad networks have faced in targeting. The vast majority of ads used to be delivered with contextual targeting: getting a Wall Street Journal audience in the WSJ, for example. Only with tracking technologies like third-party cookies on the web and IDFA/GAID on mobile were ad networks able to assemble WSJ audiences off-platform, in Candy Crush or on The Enquirer, for instance.

That saved advertisers a lot of money, because ads on the WSJ are more expensive than ads in Candy Crush. But it also cost premium publishers a lot of money. And it cost consumer privacy by requiring tracking technologies.

GDPR, California’s Consumer Privacy Act, a general consumer feeling that tracking has gone too far, and now Apple’s disabling of the IDFA are likely returning us from tracking to more of a contextual model of advertising

And that threatens Facebook revenue, at least in the short term:

“Over the long term, I believe that Facebook will find a path to its current level of ad serving efficiency without needing advertising identifiers,” says Seufert. “But the content of its own white paper underscores very clearly how important personalization is for ad targeting, and IDFA deprecation damages Facebook’s ability to deliver that kind of personalization.”

About $10 billion in Facebook revenue might be at risk in the short term. If its ads lose relevance and therefore return poorly on advertisers’ investments, that $10 billion could turn into $5 billion pretty quickly.

Unless there’s no better game in town, or Facebook finds a way to make contextual targeting as powerful as tracking.

Feature Image Credit: PHOTO BY BAREFOOT COMMUNICATIONS ON UNSPLASH

By John Koetsier

I forecast and analyze trends affecting the mobile ecosystem. I’ve been a journalist, analyst, and corporate executive, and have chronicled the rise of the mobile economy. I built the VB Insight research team at VentureBeat and managed teams creating software for partners like Intel and Disney. In addition, I’ve led technical teams, built social sites and mobile apps, and consulted on mobile, social, and IoT. In 2014, I was named to Folio’s top 100 of the media industry’s “most innovative entrepreneurs and market shaker-uppers.” I live in Vancouver, Canada with my family, where I coach baseball and hockey, though not at the same time

Sourced from Forbes

Sourced from Intelligencer

Rashad Robinson, who has helped organize a high-profile advertising boycott of Facebook during the month of July, believes the social-media giant doesn’t really care about getting rid of hate on its platform. On the latest episode of New York’s Pivot Podcast, Kara Swisher and Scott Galloway talk to Robinson, who has helped spearhead the effort, about the gap between the company’s rhetoric and its actions.

Kara Swisher: Rashad Robinson is the executive director of Color of Change, the country’s largest racial-justice organization. Last week, he was part of a meeting with Facebook executives about the July ad boycott of Facebook, to discuss the demands he and those companies have made to the social-media platform. Mark Zuckerberg and Sheryl Sandberg were on the call, and he was not impressed by Zuckerberg’s performance. So Rashad, why don’t you give us a rundown of what happened.

Rashad Robinson: Before the meeting, we had shared the list of demands again, and the demands are not complicated. They’d been part of ongoing meetings and protests. Some of them have been highlighted in previous versions of the civil-rights audit that have come out over the past year and a half, two years. So we got there really with the goal of having them tell us what they thought and where they were heading, because they actually requested the meeting.

And you know, I’ve been in a lot of meetings with Facebook. I’m going to meetings with a lot of corporations, and they get trained on how to run out the clock. They have these strategies on how to have a meeting where they get you to talk a lot and then they don’t actually have to tell you anything new. And so I took the lead. I really sort of pushed him, like, “Hey, you’ve got the demands. We actually want to go through them.”

Robinson: So one is bringing in a C-suite civil-rights leader that has the budget and the ability to oversee and weigh in on product and new policy. Another was specifically to deal with their political-exemption policy and the way they talk out of both sides of their mouth.

On one hand, they’ll say there’s a political exemption, but they don’t really use it, and no one ever gets exempted. And then Donald Trump will get exempted. And then they’ll say, “Well, that’s because he didn’t violate the policy,” but they can’t ever tell you when he will violate the policy. It’s just like you’re talking in circles. That’s just another example of how you end up with the situation where we have spent years working on getting rules in place only for them to not enforce them when it actually matters.

And so I wanted them to go through this. My last meeting with Mark and Sheryl was on June 1, right after the “looters and shooters” post, right after those posts around voter suppression, where I, at the end of the meeting, was like, “What are we doing here? Why are we continuing to meet if I don’t feel like anything’s happening and if you’re trying to just explain to us why you’re working hard?” They spent a lot of time in the meeting telling us why they’re doing more than all the other social-media platforms.

Swisher: They’ve gone around to advertisers and said that too.

Robinson: They’re so much better. They’re working so much harder. They have done things that other folks won’t do. This is the kind of constant line. At some point, someone in the meeting said, “So, I guess what you’re saying is that you’re doing everything right and that we’re just crazy.” They’re like, “No, no, that’s not what we’re saying.” I’m like, “Well, what are you saying?”

Swisher: Their own audit said exactly what you were saying, which was that they have created a really dangerous situation by favoring their version of free speech over civil rights. Why do you think that is? You have spent time with them. If you were them, what would you do to fix their structure?

Robinson: I would separate the decisions about moderation and content from his global policy shop. There is not a scenario moving forward where Joel Kaplan overseeing this is going to be fine with anyone. If Zuckerberg replaces Joel Kaplan with someone else that has to oversee their relationships in Washington, other folks are not going to be comfortable with that.

The fact of the matter is if these decisions are made through the lens of how to keep policy-makers and policy leaders happy, then you’ve actually violated one of the tenets of fermenting connection, because you are making decisions rooted in keeping powerful people and powerful forces comfortable and happy. It happens here in the United States, and we have a particular experience with it. But folks in other parts of the world have a different experience, where protests might be illegal, where speaking out might be illegal. The fact of the matter is that Facebook will tell us one thing about their intentions, but every single decision is rooted in profit and growth. Every single decision is through that lens.

Galloway: 100 percent.

Robinson: And so in order to keep profit and growth going, they actually have to stay friends with those in power.

Swisher: This is Scott’s opening, because this is one of the main points he makes all the time.

Galloway: First off, kudos to you and Color of Change. I was really skeptical that this boycott was going to have any impact, but it’s had more impact than almost any other effort I can see today. So first off, well done. Secondly, quite frankly, I’m not sure it’s going to do anything. Let’s speculate that if you call on Facebook’s better angels, that no one’s home — and that you have to move back to applying financial pressure. Can you give us a sense of the state of the boycott and how you put pressure on the better angels of the people at organizations that spend money on Facebook?

Robinson: I think financial pressure is important as well as hopefully changing the political levers in Washington. That to me is the long game, because even this type of effort feels like something that we just can’t be constantly doing, going against the largest advertising platform the world has ever known. It just can’t simply be about asking advertisers to walk away. I’ve had a lot of conversation with advertisers, a lot of conversations recently with the Madison Avenue firms who manage advertisers, trying to continue to get a pulse of where folks are at. I think one thing that’s been really helpful here is that this conversation has trickled up to the board level at a lot of companies.

I also think that some of the things that Mark has said about advertisers coming back, some of the flip ways he has responded to this — it’s one thing for Mark to call us weak, for us to say he doesn’t have to think about what we are demanding. But you know, a bunch of corporate CEOs, at what point are you all going to stand up? At what point are you going to say that you’re not going to let this person walk all over you? I think that has been part of Facebook’s missteps. They have stepped on the ego of a lot of folks who have ego and who don’t want to be treated like that they’re not valuable or their opinions don’t matter.

Swisher: One of the things is they don’t like Facebook. You can talk to most of them — they tolerate it because they need it, because it’s the only game in town.

So, two things I’d love to know. What do you think the impact right now is of what Facebook is doing on people of color? Because you have a group that’s not just people of color — you have the ADL, you’ve got the NAACP, you’ve got so many groups you’re working with. What is the impact on society right now for these continued — I would call them — abuses by Facebook?

Robinson: The technology that’s supposed to bring us into the future is in so many ways dragging us into the past. We had created a sense of social contracts around the ways that white nationalists could organize, right? They can’t organize at the Starbucks in a public space and have a meeting. They couldn’t do things out in public, but the incentive structures at Facebook have allowed people to not only organize, but … A 15-year-old that is searching for one thing runs into some white-nationalist content and then goes down a hole because they get served more and more of this content. Because the ways that the algorithms are set up, people are almost indoctrinated into these ideas that we’ve tried to put at the margins. Facebook has created a space that feels like home, that makes these things comfortable, that makes these things acceptable. And to that extent, they’ve been damaging.

At the same time, Facebook has refused to be accountable. I was having a conversation with Alicia Garza, who’s one of the co-founders of Black Lives Matter. Alicia famously posted “Black Lives Matter” on Facebook right after the Zimmerman verdict.

Kara Swisher: Which got it started.

Robinson: Mark talks about it. He talked about it in his free-expression speech at Georgetown. And Alicia gets regular death threats on Facebook. She has to go through the same decision tree that anyone else has to go through. She’s had about 20 death threats over the last several months. And Facebook has declined to take action on every one of them through automation. They say something about how it doesn’t violate terms. And she’s never gotten a phone call from Facebook, no outreach, no engagement that one would expect. This is Alicia, who’s on TV, who is well known — and Facebook actually uses her name. They use her work in the cases they make around this, and they don’t even respond to the attacks that she’s getting. It’s because they don’t care. The same way Mark can say that these Fortune 500 advertisers don’t matter, he’s on the other hand saying that Black activists’ voices don’t matter either.

This is one would imagine how he would have treated SNCC organizers, how he would have treated the civil-rights leaders that we lionize today in terms of the ways in which they were attacked and targeted. All of this is because you’ve got this person that has far too much control and believes that they, and they alone, understand what’s right. We don’t actually have the leverage to challenge them. And so I really appreciate what you said around the boycott. I feel really proud of what we’ve been able to do. But part of this, from my perspective, has always been about raising the level of attention and energy and focus so that we can advance the real conversation about 21st-century rules of the road. It’s not just Facebook. It is that all of these platforms, if left to their own devices, will rely on the wrong set of incentive structures because profit and growth are key drivers to why they exist.

Galloway: What are the one or two things any of the 3 and a half billion Facebook users could do right now if they wanted to be supportive of your actions? What’s the call to action?

Robinson: A couple of things, I think that folks need to, first and foremost, vote in this upcoming election. I think that people need to make sure that politicians know that we want to hold big institutions accountable and that we vote, because the long game is a new set of rules and we just don’t get that by wishing. The second thing, I think, for folks who are actively using Facebook, is that if they see negative content, if they see content that’s hateful and they see an advertiser next to it, send that to the advertiser. Advertisers need to consistently hear from consumers — why are you sponsoring this type of content? Why do you have your brands next to this type of content? The vast majority, the overwhelming majority of advertisers are not trying to have their stuff next to this.

But Facebook is telling them one story and there’s a totally different story that’s actually happening. And then finally, I think that all of us have to be really active users about the content that’s coming our way. What are we clicking on? What are we sharing? What are we engaging with? Because the level of disinformation and misinformation that’s going to be on platform as we head into this election is going to be outrageous. We all, in our day-to-day lives, can play a role in disrupting that and pushing back on that.

Swisher: And what is your next move? More boycotts? Continuing the pressure?

Robinson: Continuing the pressure. July 27, Mark testifies in front of Congress on antitrust issues. A corporation that has become so big and powerful where they don’t listen to major corporations, where they don’t have to listen to social-justice leaders, means that there are questions about whether the platform has become too powerful. And whether it needs new rules. I think that’s the next phase in this work. The problem for Facebook is that they are asking people to trust them and big companies to trust them. And I think the message I have for big companies is: Do you think that they’re going to embarrass you? Because I have a quick answer for you. They will. And so just know that time and time again, they have no problem with embarrassing you, embarrassing your brand.

Swisher: Rashad, thank you so much. I don’t know what to say. It’s great to hear a voice like you. Your whole group is fantastic. You all should pay attention and advertisers should absolutely be paying attention to this as we’re going forward. And anything we can do to help, we certainly will.

Robinson: Appreciate you. Thank you.

Pivot is produced by Rebecca Sananes. Erica Anderson is the executive producer. 

Feature Image Credit: Chip Somodevilla/Getty Images

Sourced from Intelligencer

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Marketing holds a unique place in the modern world; it has the ability to challenge and shape perspectives, to inform culture and to kickstart movements.

Now, in a time of global crisis, we see more clearly than ever the industry’s ability to effect real change, by driving positive messages and offering platforms to those that need it.

It is in the spirit of this fundamental belief that The Drum and Facebook have teamed up to launch the ‘Marketers Can Change the World’ global initiative, which aims to unite and support the industry across three areas: EMEA, North America and APAC.

At its heart, Facebook exists to help create and sustain communities, even from a distance. Now, during Covid-19, that distance is felt more than ever. Pledging to donate $100mn to 30,000 small-to-medium size businesses (SMBs) across these markets, Facebook will support established and rising marketing leaders to rethink how these businesses are run and how we can make them more resilient in times of struggle.

Discussing the exciting new initiative and how marketing can effect positive change in the world is; General Mills marketing head- culture & brand experience (Europe-Australasia), Arjoon Bose, Bombay Sapphire brand director, North America, Tom Spaven, Facebook global industry relations and intelligence lead, Sylvia Zhou, and The Drum associate editor, Sonoo Singh.

What steps have been taken?

“You’ll have seen the Coronavirus Information Centre located at the top of your news feed from the start of the pandemic,” says Zhou. “This was introduced so that our users are up-to-date with news and developments, from a source they can trust.” Facebook has also offered free ads to public health authorities such as the W.H.O, created Community Help where people can support their peers and recently launched Facebook Shops to help users pivot their business online.

Spaven speaks of Bacardi’s commitment to their consumers during this trying period: “The bar and events industry was particularly impacted by Covid-19, so we wanted to give back to the businesses that have continually supported our business.” The project pledged $3mn in financial aid to bars and bartenders facing difficulty during this period, as well as offering up their platforms and marketing expertise for those that need it. For Bacardi, it was a case of serving those that serve them; an idea also seen at General Mills. With the enforcement of lockdown, Bose understood that it was essential to reiterate the kitchen as being the heart of the home and to promote the everyday products needed by families.

What more can bigger brands do to provide support?

“Now is the time to be bold and responsible,” Bose responds. Marketing has always been at the forefront of significant change. He argues that during these difficult times marketing gives consumers a reason to spend and a reason to hope. Now is the time to reiterate brand identity.

Spaven believes that going back to basics is the surest way to engage your consumer base. “The fundamentals of marketing, as well as of human behavior don’t change, only budgets and resources do.”

What are the objectives of the Facebook project?

The ‘Marketers Can Change the World’ global initiative supports small-to-medium size businesses (SMBs) across EMEA, North America and APAC and will focus predominantly on those run by immigrants, senior citizens, or women. “Statistics show that businesses run by these marginalized groups encounter more difficulties in acquiring resources and financial funding,” Zhou shares with us. The project will give rising stars in the marketing industry the opportunity to collaborate with senior mentors with vast experience in the field. Working together on a prescribed brief, the teams will create business policies that give value for the people and communities they impact. Facebook will provide essential training and access to tools that will allow these businesses to thrive both during and after the pandemic.

What knowledge will the mentors be able to impart?

Both Arjoon Bose and Tom Spaven express their sincere gratitude at having been asked to take part in the initiative as mentors. “This is a great opportunity to listen and learn from others, and to experience situations in a new way,” Spaven says. These views are echoed by Bose, who recognizes this opportunity to collaborate with different people and teams, as a teaching moment.

“I hope to be able to provide a fresh perspective to the team members and ask the right questions,” shares Spaven. This initiative lets teams combine the quick thinking of big brands with the even quicker movement of smaller, more centralised businesses.

At the heart of this, is our consumers- and their needs are changing rapidly. How are brands able to keep pace with this?

“Brands have to always be open to change,” states Bose. “Whether that’s remaining open to rethinking your retention strategy, trying out new tools or reprioritizing your products in line with consumer needs- we must be agile.”

Similarly, for Spaven businesses should always be thinking about their brand experience and how this meets customer needs. “Purpose is so important for every brand, but that doesn’t mean they all have to save the world,” he affirms. Understanding your brand’s mission and ensuring you deliver that, ethically and responsibly is enough.

Spaven adds that diversifying the industry needs to be a top priority if we are to truly meet the demands of today’s consumer; “It’s not about ticking a box, it’s about benefitting your bottom line- it’s just good business sense.”

Zhou agrees: “This mission is at the core of what Facebook wants to achieve in this initiative. By channelling our every effort into increasing the visibility of these groups, we want to create a ripple effect throughout the industry. This project will reveal the true power of marketing to influence for good and change the world for the better.”

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Sourced from The Drum

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As brands continue to add their name to the growing list of companies boycotting Facebook, fresh research from the World Federation of Advertisers (WFA) has painted a sobering picture of how marketers view the social network and its rivals.

Volkswagen and Mars are the latest corporations to halt ad spend with Facebook over its handling of damaging content and misinformation. The car marque and food giant join Levi’s, Coca-Cola, Unilever and more in signing up to the ‘Stop Profit for Hate campaign’ which is backed by civil rights groups including the NAACP, Color of Change and the Anti-Defamation League.

The coalition has been calling on major corporations to put a pause on advertising on Facebook for the month of July, citing its “repeated failure to meaningfully address the vast proliferation of hate on its platforms”.

Some brands have gone further, pulling the plug on all investment for the foreseeable future across all social networks.

The WFA’s research has revealed a diminishing faith in not only Facebook, but also its bedfellows, to address the issue at hand.

What did the WFA’s research find?

  • The WFA’s members control nearly $100bn in global ad spend. Following on from the news of the Facebook boycott, the trade body asked members about their policies on social media ad spend. The WFA’s research asked advertiser views on all social media platforms.
  • 76 responded, representing 58 companies and $92bn in marketing dollars.
  • Almost one-third of these marketers (31%) said they will, or are likely to, suspend advertising on social media over platforms’ failure to police hate speech. A further 40% said they were also considering doing so.
  • 17% said they were unlikely to withhold spend. 12% said they had no plans to withhold spend.
  • Brands were also asked which other actions they’d taken or had considered. 53% said they’d already had direct conversations with social platforms about hate speech. 48% said their main approach was to work through industry bodies to deal with the issue. 32% said they weren’t taking action for now and 13% said they were taking other actions.

What does the data show?

  • If anything, the survey shows how divided the industry is on how to handle the issue. Some brands are set on pulling spend, where others remain undecided.
  • The WFA also released some anonymised qualitative responses as part of the research. Again, these are a mixed bag: one marketer laments that it’s “simply depressing” how much the platforms are still falling short and says they would “appreciate support with identifying and viable alternatives for investments”.
  • Another pointed out that neither the platforms nor the advertisers propping them up are perfect: “Advertisers may pull out of these platforms,” the brand marketer continues, “but consumers will not.

What’s next?

  • Hate speech and how brands inadvertently fund it is an issue that has been on the WFA’s radar for some time. Working with social networks to find a solution to the problem is already being prioritised by the trade body’s Global Alliance for Responsible Media (GARM).
  • For its part, Facebook has promised “new policies to connect people with authoritative information about voting, crack down on voter suppression, and fight hate speech”.
  • Actions include labelling posts that are potentially harmful and even in violation of the platform’s policies but are not censored by the platform because they are deemed newsworthy.
  • Facebook will also add a link to its voting information centre to posts that reference voting, including those made by politicians such as President Trump.
  • Speaking to the Financial Times earlier this week, chief executive of the WFA Stephen Loerke noted how this moment feels like a turning point amid the pressure of the ‘Stop Hate for Profit’ campaign.
  • “What’s striking is the number of brands who are saying they are reassessing their longer-term media allocation strategies and demanding structural changes in the way platforms address racial intolerance, hate speech and harmful content,” he explained.
  • The magnitude of the brand exodus won’t really be clear until Facebook releases its Q3 results in October.

Feature Image Credit: Volkswagen and Mars are the latest corporations to halt ad spend with Facebook over its handling of damaging content / Unsplash

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Sourced from The Drum

By Adam Levy

After numerous delays, it’s rolling out a key feature in the messaging app.

Facebook‘s (NASDAQ:FB) efforts to monetize WhatsApp — the messaging app it paid $19 billion for in 2014 — have been delayed and rethought several times over by CEO Mark Zuckerberg and his management team. Plans to place advertisements in WhatsApp Status were suspended earlier this year and efforts to launch a payments platform in India have hit a roadblock.

But WhatsApp payments is finally launching. Not in India, but Brazil, WhatsApp’s second-largest market by users. The service is built on Facebook Pay, which the company plans to use as the foundation to support payments across all of its apps. As e-commerce becomes a bigger part of Facebook’s business, WhatsApp payments represents a major step toward monetizing WhatsApp’s 2 billion users.

How payments will make money in WhatsApp

Facebook will charge fees in line with industry standards for payments made in WhatsApp. That means peer-to-peer payments won’t cost users anything, while businesses will pay a fee to receive payments from customers. In Brazil, that fee is 3.99%.

It’s worth noting Facebook uses a similar fee structure for payments in Messenger, which it rolled out in 2015. But Messenger payments haven’t become a major source of revenue, because most users don’t use the app to communicate with businesses, and when they do, they’re not using it to transact.

It’s far more common to use WhatsApp for business interactions, especially in countries like Brazil or India. In fact, WhatsApp rolled out an app just for businesses in 2018. It amassed over 5 million users within a year. There’s still a lot of room to grow that number, as Facebook boasts 140 million Pages on its flagship platform. What’s more, its investment in and partnership with Reliance Jio could bring millions of businesses onto the platform.

At the end of last year, WhatsApp introduced the ability to add a product catalog in the business app. And it offers a paid API for businesses to more easily handle communication with customers. The addition of a payments platform within the app will support both.

Supporting the full ecosystem of Facebook apps

Payments in WhatsApp cannot be considered in a vacuum. Supporting commerce in the messaging app will make click-to-message advertisements on Facebook or Instagram more valuable. That’s because they increase the ability to convert a message into a sale, and Facebook could have additional user data about their payments behavior in its messaging app.

Moreover, Facebook is using the Facebook Pay platform it started rolling out last year in order to support payments in WhatsApp. The unified platform allows users to enter their payment information once, and use it across Facebook’s family of apps.

Facebook has made several efforts to increase commerce on Facebook and Instagram over the past year. It introduced Checkout on Instagram and Shops on Facebook. Both aim to reduce the friction customers experience when clicking through advertisements on its platforms, as well as make it easier for retailers to establish an online presence. Adding payments in WhatsApp could help increase conversions for its other e-commerce products and vice versa.

Looking at the WhatsApp payments rollout as part of the larger ecosystem of services from Facebook points to the real potential of the service. While commerce within WhatsApp could be a nice source of revenue, commerce across all of its apps could add up to something truly meaningful for the FAANG stock, which generated over $70 billion in revenue last year.

WhatsApp payments in Brazil is just the first step for Facebook, but it’s extremely meaningful. The country represents a sizable portion of its market, and a fast-growing economy. Increasing the number of users with payment information connected to Facebook Pay should support much broader applications than just sending some cash to a friend, and that’s where the real opportunity lies for Facebook to finally make some money from WhatsApp.

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By Adam Levy

Sourced from The Motley Fool

By 

The change lets Facebook play both sides of the debate about political advertising on social media.

SAN FRANCISCO — For months, Facebook has weathered criticism for its willingness to show all types of political advertising to its billions of users, even if those ads contained lies.

Now the company is changing tack — sort of.

 

The social network said it would allow people in the United States to opt out of seeing social issue, electoral or political ads from candidates or political action committees in their Facebook or Instagram feeds. The ability to hide those ads will begin with a small group of users, before rolling out in the coming weeks to the rest of the United States and later to several other countries.

“Everyone wants to see politicians held accountable for what they say — and I know many people want us to moderate and remove more of their content,” Mark Zuckerberg, chief executive of Facebook, wrote in an op-ed piece in USA Today on Tuesday. “For those of you who’ve already made up your minds and just want the election to be over, we hear you — so we’re also introducing the ability to turn off seeing political ads. We’ll still remind you to vote.”

The move allows Facebook to play both sides of a complicated debate about the role of political advertising on social media ahead of the November presidential election. With the change, Facebook can continue allowing political ads to flow across its network, while also finding a way to reduce the reach of those ads and to offer a concession to critics who have said the company should do more to moderate noxious speech on its platform.

Mr. Zuckerberg has long said that Facebook would not police and moderate political ads. That’s because the company does not want to limit the speech of candidates, he has said, especially in smaller elections and those candidates who do not have the deep pockets of the major campaigns.

But critics, including the Biden presidential campaign, have argued that Facebook’s laissez-faire approach has dangerous consequences, with untruthful political ads leading to the spreading of disinformation and potential voter disenfranchisement. Some Republicans have argued that Facebook should not act as an arbiter of what can and cannot be posted in ads, and that the company’s intervention amounts to censorship.

The Biden presidential campaign lashed out at Facebook over its hands-off policy on political ads last October after the Trump campaign released ads on the social network that falsely claimed that Mr. Biden had offered to bribe Ukrainian officials to drop an investigation into his son. Since then, the Biden campaign has called for the company to fact-check ads from candidates and their campaigns.

Last week, Mr. Biden’s campaign also began an online petition and letter to Mr. Zuckerberg to demand changes to its speech policies ahead of the 2020 presidential contest. At the same time, the Biden campaign also spent $5 million in advertising on Facebook, surging past political ad spending by Mr. Trump on the platform.

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Sourced from The New York Times