News 7 Min Read
Despite Brand Boycotts, Many Direct-Response Advertisers Are Still Committed to Facebook
Facebook earnings stay strong despite brand boycott, and a glimpse into Twitter's new subscription platform.
Why Are Facebook’s Stocks on the Rise Despite the Boycott?
More than 750+ brands have pulled their ad dollars out of Facebook, as the brand boycott continues to charge ahead. However, Facebook’s stock price continues to climb, despite the tech giant receiving a lot of criticism for the way they have handled issues around hate speech and brand safety.
SteelHouse CEO Mark Douglas was interviewed on FOX Business for his take on the matter.
“Facebook’s success is very intertwined with the success of their customers, who depend on Facebook to drive traffic to their website. As long as that dependency exists, you’re not going to see the boycott affect Facebook’s ad revenue or their stock price.”
The power of direct-response marketing is evident, since direct-response advertisers are so reliant on Facebook. Data and a decline in user engagement is the issue at stake, which poses a longer term threat. Douglas brings up the point that even government regulation would not be an issue, since both parties are aligned and it “shifts the blame and people’s opinion of them to the government.”
Twitter’s New Subscription Platform: A Make or Break?
The other hot news hit from the technology world? Twitter’s new subscription platform service was leaked through a job ad on the same platform, but has sparked debate on whether or not this would be a good idea. Douglas also provides his thoughts, taking into consideration Twitter’s share of voice in the social media space.
“Twitter’s influence in the world is up there with Facebook and Instagram, but the size of the audience is not. I don’t see the play in terms of the subscription to Twitter itself. Other subscription possibilities aren’t a clear play, and I don’t think we would see an immediate move to subscriptions right now.”
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