Sina Science and Technology News Beijing time on July 1st morning news, some to Facebook IncHighly dependent advertisers also want to join the recent advertising boycott, so they are caught in a dilemma: if they join, they will face the risk of short-term business damage; if they do not join, they may suffer a long-term loss of customers because they do not pick sides.

As hundreds of companies have joined the boycott of Facebook Inc's advertisements, some people begin to question why some companies have not joined them for a long time. Others are more cynical: they believe that the companies involved in the boycott are just an excuse to cut back on marketing spending as a result of COVID-19 's epidemic.

But for many companies, Facebook Inc is indeed a very efficient channel, and experts believe that abandoning the platform completely may require huge sacrifices, especially for companies that rely on the platform to attract new customers.

Joey Howard, chief marketing officer of password management company Dashlane, wrote last week that even joining the "# StopHateForProfit" boycott for a month was "a very difficult thing for many of us".

Facebook Inc is an "extremely effective channel" and switching to other channels requires a high degree of self-discipline and sacrifice, she said in an interview on Monday. She also said that the company has hoped to reduce its dependence on Facebook Inc and has begun to actively test other platforms.

"the more dependent a brand is on direct response, the greater the sacrifice it will make to leave Facebook Inc." She said. She refers to responding directly to advertisements, including many ways to prompt users to take immediate action, such as downloading apps or shopping through e-commerce sites. "I hope it will be easier for companies and brands that are smaller and more dependent on Facebook Inc to make their position clear, but if they do not, it is almost certain that they cannot afford the losses."

Howard also said she hopes her company can succeed in other marketing channels.

"but what is certain is that if we cannot maintain efficiency on other platforms, we will have to rethink our position." She said.

In an interview with the media on Monday morning, Jonathan Greenblatt (Jonathan Greenblatt), CEO of the Anti-Defamation Alliance, said he did not think that companies had joined the boycott just to save advertising money. The agency is one of the leading organizations of the "StopHateForProfit" boycott.

"I think it's wrong. I have communicated with a lot of CEO in the past few days, and all of them are dealing with the difference between COVID-19 's epidemic. " "Advertising spending is very important to their customer acquisition plans," he said. It is no small matter for enterprises to evacuate Facebook Inc. They can get highly accurate users there. This is crucial to every marketing plan. "

He added that he believed that CEO, which wanted to stop subsidizing hate content with advertising, was trying to balance moral issues with business interests.

Brendan Gahan, partner and chief social officer of advertising agency Mekanism, said that even though cost reduction during the epidemic may have been one of the reasons for some companies to participate in boycotting Facebook Inc, he did not think it was a major factor.

"I think this is a brave move and the short-term profits of these brands could be seriously damaged." "conceivably, a lot of companies want to be on the right side," Garner said. These brands don't want to just make quick money now. "

Ghana said that big brands may only use Facebook Inc as a channel to promote their brands, but many companies use the platform to get customers, so it is a more difficult decision for them to stop advertising Facebook Inc.

For many brands that face consumers directly, Facebook Inc is often the lifeline of their entire sales channel. In many cases, even their entire sales channel. " Garner said, "the world's top 500 consumer brands may be more concerned about brand awareness." They can transfer advertising funds without having too much impact on profits. But for companies that face consumers directly, this is equivalent to learning from Walmart IncGet off the shelves. "

Mary Smith (Mari Smith), a marketing executive at Facebook Inc, said that companies that suffered business losses as a result of evacuating Facebook Inc might be able to take half of the budget originally allocated to Facebook Inc to test other channels, or build an email list, or test Twitter.Advertising.

What will happen to Facebook Inc in July?

If the withdrawal of a large number of brands leads to a reduction in Facebook Inc's advertising bidding next month, it can provide some enterprises with a rare opportunity. In fact, this also happened at the beginning of the epidemic, when some Internet games, e-commerce and online learning companies were able to buy advertisements at low prices.

Many direct response advertisers are willing to invest more money when others leave, BMO analysts said on Monday.

JPMorgan Chase & CoAnalysts also said in a research report on Monday that many marketers, especially direct response marketers, will take advantage of this rare opportunity to buy ads at a low price.

They say Twitter is most likely to face resistance because it attracts high brand spending and acts as a "more political" open city hall.

"although some marketers will also learn from Snap IncThe funds were withdrawn, but Snap Inc mainly responded to advertisements directly, and its platform separated personal chat from professional content and news, and the latter was specially edited. " JPMorgan Chase & Co analyst wrote.

JPMorgan Chase & Co analysts also pointed out that Facebook Inc said in the first quarter of last year that the company's top 100 advertisers contributed less than 20 per cent of its revenue.

"many companies simply cannot afford the scale and return on investment lost by withdrawing Facebook Inc, especially when the economy resumes." They said. (book)