a pause on social ad spending, inspired by the Stop Hate for Profit boycott, where will those dollars go instead?There are two reasons why we expect spending previously planned for Facebook likely won't be spent elsewhere:
The brands pulling back on spending are generally not performance advertisers, and Facebook is a performance advertising platform. The advertisers pulling spend overwhelmingly fund brand campaigns on Facebook — not performance ones — because their businesses are not optimized for performance advertising. Therefore, these brands were never overly reliant on Facebook or any other performance platform for the kind of advertising they need to do.
generally don't maintain direct relationships with their customers and sell their products through countless retailers — this makes calculating ROI or ROAS incredibly difficult when a brand doesn't have access to granular purchase data. of companies that sell consumer goods, which have seen lower sales due to the pandemic and the slower consumer spending.
Performance advertisers who continue spending on Facebook. Companies who sell their products online and maintain a direct consumer relationship spend most of their ad budgets on performance marketing. With brand marketers pulling out, these advertisers are likely to on CPMs if they remain on Facebook.
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