Facebook's ad revenue could take a hit if more brands follow Unilever's lead on boycott - Business Insider

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ICYMI: Big brands participating in the Facebook ad boycott may present an opportunity for smaller businesses that heavily rely on Facebook for advertising

But this also present an opportunity for smaller local businesses and performance marketers that heavily rely on Facebook for advertising. "Reduced pricing as a result of advertiser boycotts may attract more spending on campaigns that wouldn't be economical at higher prices, and provide better ROI for advertisers who remain," said Eric Haggstrom, eMarketer forecasting analyst at Insider Intelligence.

For context, we've already revised down our 2020 Facebook ad revenue estimates due to the coronavirus. We expect a 4.9% growth this year to $31.43 billion, far less than the $36.25 billion we originally forecast. "Unilever's move is also coming at a time when advertisers are looking for efficiencies due to the COVID-19 pandemic, and many brand advertisers curtailed spending on Facebook earlier this year.

 

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