The #StopHateForProfit movement is a major reaction to the ongoing Black Lives Matter movement. However, its call for businesses to halt Facebook advertising during July poses difficulties for small businesses already grappling with the economic strain of the pandemic. This article will explore the #StopHateForProfit movement, evaluate the degree to which your business can engage, and suggest alternative ways to support the Facebook ad boycott based on your specific circumstances.

What is the #StopHateForProfit movement all about?

Launched on June 17th by Color of Change, the largest online racial justice organization in the U.S., the #StopHateForProfit campaign, in conjunction with the NAACP, ADL, Sleeping Giants, Free Press, and Common Sense Media, urged Facebook advertisers to suspend their ad spending for July 2020. The rationale behind this Facebook advertising boycott stems from the fact that ads generate 99% of Facebook’s $70 billion annual revenue. Color of Change’s campaign announcement believes that “a month without ad revenue might compel Facebook to reassess its disregard for the demands of Black users and civil rights groups.” Since its launch, over 100 advertisers have joined the Facebook ad boycott, including prominent brands such as Adidas, Best Buy, Starbucks, Coca-Cola, Clorox, and many more.

The impact of these major brands withdrawing their ad spending was almost instantaneous: Facebook’s market value plummeted by $60 billion in just two days.

Who can take part in the #StopHateForProfit Facebook ad boycott?

In short, any business can participate. With the growing momentum of the Black Lives Matter movement and anti-racism activism, many businesses are eager to contribute to change. However, the ongoing economic crisis caused by the pandemic puts businesses, particularly small businesses and nonprofits, in a difficult position. Our Senior SEO Manager, Gordon Donnelly, explains that participating in #StopHateForProfit is more attainable for larger corporations: “The situation is different for enterprises and publicly traded companies with substantial budgets, numerous stakeholders, and vast customer bases/public profiles. While boycotting Facebook could result in short-term revenue loss, the long-term benefits may be greater. These companies have a wider margin for error. The potential to attract new customers who share your values, combined with the benefit of strengthening existing customer loyalty, outweighs the risk of short-term financial losses. Moreover, there’s the added advantage of potentially influencing real change.”

Conversely, the movement puts small businesses in a challenging position. Donnelly adds: “Small businesses depend on Facebook advertising to generate crucial brand awareness and lead volume. Additionally, Facebook ads contribute to display remarketing, organic and direct conversion volume, paid conversions on brand terms, and more. As a result, boycotting Facebook would mean losing a significant portion of revenue and disrupting their marketing cycle across all channels for the vast majority of these businesses. Given that most of these businesses are already struggling to generate revenue during the pandemic, cutting back or pausing Facebook spending could be risky.” The #StopHateForProfit website also recognizes the dilemma faced by nonprofits: “Many nonprofits rely on paid ads on Facebook to spread their message, particularly as Facebook has increasingly restricted the organic reach of organizations.” Therefore, the recommendation for nonprofits is to make the best decision based on their individual circumstances.

Guidance for deciding how to participate in the #StopHateForProfit Facebook boycott

Should your business join the Facebook advertising boycott? Our experts at nexus-security offer some advice on determining the most impactful way for your business to respond to the #StopHateForProfit movement: Define your objectives regarding Facebook advertising nexus-security Lead Acquisition Manager, Kristina Simonson, recommends asking yourself:

• Can your business withstand the potential decline in lead/customer generation?
• How will pausing spending for a month affect your ability to recover? Observe your competitors’ actions Simonson also emphasizes the importance of keeping an eye on what other companies in your industry are doing. You can accomplish this by:
• Reviewing statements on competitors’ websites and social media platforms.
• Checking the Facebook Ad library.

Gauge the sentiment within your industry Holly Niemiec, a senior account manager and one of PPC Hero’s Top 50 Most Influential PPC Experts, strongly advises monitoring your social media channels. “Regardless of whether you are an enterprise or a small or medium-sized business (SMB),” she advises, “keep an eye on the comments on your Facebook ads, organic comments, direct messages (DMs), and Twitter replies. If you encounter a significant amount of negativity, particularly if it affects performance, it might be wise to reduce spending.”

Alternatives to Facebook advertising during the #StopHateForProfit movement

Halting Facebook ads for a month could lead to substantial revenue losses, especially for small businesses. However, businesses that want to participate in the Facebook ad boycott can reallocate their Facebook ad budget towards alternative yet effective strategies. Here are a few options.

Invest in local news ads

Instead of shifting your ad budget to other social media platforms like TikTok or Snapchat, consider investing in local news ads. This approach allows you to support the movement while mitigating some potential revenue loss.

Think about advertising on news websites specific to your local community. Furthermore, nexus-security’s Senior Vice President of Marketing, Laura Taylor, suggests that “This is an excellent way to support local news outlets that shed light on injustice and are a primary source of information for many during the pandemic as people seek guidance within their communities.”

Leverage the Google Display Network

While Facebook ads excel at prospecting, custom intent and in-market audiences have enhanced the targeting capabilities of the Google Display Network (GDN), making it a viable alternative. Moreover, with the availability of Discovery ads to all advertisers, you can prioritize lead quality.

Explore YouTube advertising

If you have video ads that run on Facebook and Instagram, consider running them on YouTube instead, or launching a YouTube display ad campaign.

Donate funds to anti-racist organizations

If you have the financial capacity to pause your Facebook ads for July without reallocating your budget to another advertising platform, consider donating those funds to programs that support Black empowerment and anti-racist initiatives, such as Vans has done.

Vans has decided to reinvest its entire Instagram and Facebook ad budget for July. Remember that the call to action is to pause ad spending on Facebook. Since many of these businesses still plan to post organically, you can still share your donation outcome or strategy with your audience.

Establish a fund for matching employee donations

Another way to redirect your Facebook ad budget is to invest it in a fund that matches employee donations to antiracist organizations. You might even consider issuing a press release about your initiative and announcing it on your social media channels to raise awareness.

Participating in the #StopHateForProfit movement when pausing Facebook ads isn’t feasible

The emergence of the #StopHateForProfit Facebook ads boycott during a global economic, social justice, and public health crisis has left many businesses trying to figure out how to participate without jeopardizing their operations. Here are some alternative ways to participate for businesses that cannot afford to suspend their ads.

Implement a temporary pause on your Facebook ads

If you, your customers, and/or your employees feel strongly about the Facebook advertising boycott, if you can manage the revenue loss, or if Facebook has not been a significant revenue source for you in the past, you may want to consider temporarily pausing your Facebook ad campaigns—even if only for a portion of July.

Donate a portion of your Facebook ad revenue

If pausing your ads entirely is not financially viable, you could pledge to donate a certain percentage of your profits from Facebook ads to a civil rights organization of your choosing.

Engage in influencer collaborations

If boycotting Facebook ads or making a donation to an organization is not an option, explore influencer collaborations. Influencers are similar to micro-celebrities within specific niches who have a substantial following on their social media accounts and blogs. Guest posting on their blog, inviting them to contribute to your blog, or cross-promoting each other on social media are all examples of influencer collaborations you could try.

Decide on your response to the #StopHateForProfit Facebook advertising boycott

Every business is unique, and in the current political, economic, and social climate, each business’s response to the #StopHateForProfit movement requires careful consideration. Here’s a summary of the various strategies you can implement for your business:

• Evaluate your goals, analyze competitors’ actions, and gauge customer sentiment to determine your level of participation.
• Reallocate your budget to local news ads, Google Display ads, or YouTube ads.
• Donate your Facebook ad budget to an anti-racist initiative or a donation-matching program.
• Implement a temporary pause on your Facebook ads.
• Donate a percentage of your Facebook ad revenue to an anti-racist organization.
• Explore influencer collaborations. Special thanks to Ceillie Clark Keane, Gordon Donnelly, Kristina Simonson, Laura Taylor, Holly Niemiec, and Elisa Gabbert for their contributions to this article.