Walt Disney, Even You... Growing Facebook Ad Boycott

Advertising Halted on Instagram, the SNS Owned by Facebook

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Walt Disney, the largest advertiser on Facebook, has decided to join the advertising boycott movement.

On the 18th (local time), the Wall Street Journal (WSJ), citing sources familiar with the matter, reported that Walt Disney recently decided to significantly reduce its advertising spending on Facebook. Furthermore, it decided to stop advertising on Instagram, a social networking service (SNS) owned by Facebook.

Advertising spending on Facebook is known to be particularly effective compared to other advertisements, and many brands prefer Facebook ads.

Nevertheless, Disney made this decision because civil rights organizations such as the National Association for the Advancement of Colored People (NAACP), dissatisfied with Facebook's handling of hate speech and divisive content, threatened to launch a boycott against Disney if it did not reduce its advertising spending.

Walt Disney is considered the largest advertiser on Facebook as of the first half of this year. According to research firm Pathmatics, Walt Disney spent about $210 million (approximately 253 billion KRW) on advertising for its video service (OTT), Disney+, on Facebook from January to June this year. Additionally, Walt Disney also stopped advertising on Instagram, owned by Facebook, for Hulu, a video streaming service in which it holds shares. Hulu reportedly spent a total of $16 million (approximately 1.93 billion KRW) on Instagram advertising from April 15 to June 30.

Previously, major U.S. brands such as Unilever, Starbucks, Verizon, and Ford had successively announced the suspension of Facebook advertising.

Meanwhile, Facebook reportedly earns advertising revenue worth $70 billion annually from more than 8 million businesses.

This content was produced with the assistance of AI translation services.