The movement of advertisers boycotting Facebook has been an opportunity for Snap.
Major advertisers in the past month announced various degrees of pauses to their social media advertising budgets, following a campaign called “#StopHateForProfit” by a group of organizations calling on advertisers to boycott Facebook for the month of July. Those organizations want to pressure Facebook into taking more stringent steps to stop the spread of hate speech and misinformation on its platform.
Although some of the advertising pauses have extended to platforms beyond just Facebook, other brands have moved spending from Facebook to other platforms, including Snap.
Jeremi Gorman, Snap’s Chief Business Officer
Source: Snap
On the company’s Q2 earnings call, Snap Chief Business Officer Jeremi Gorman said although it was difficult to determine the exact revenue impact of the boycott so far, the conversation has “opened the door” for Snap to have conversations with high-level executives at brands.
“What we do know is that it’s always positive to engage at the highest levels of an organization, and this conversation has opened up the door for us to do that extremely frequently at the CEO and CMO levels,” she said.
It’s an opportunity for the company to promote itself as being hand-curated and safer for brands.
“There is no town hall or ability for an unvetted user to post to our whole community, and as advertisers evaluate platforms which align with their values, these deliberate decisions made years ago are of paramount importance,” she said.
Gorman noted that the majority of the Snap’s revenue comes from “direct response” advertisers, which as a segment has not been participating as widely in the boycotts. Many direct response advertisers rely heavily on platforms like Facebook to do business.
—CNBC’s Salvador Rodriguez contributed to this report.
