US election years and the changes they bring to the social media industry

Three weeks ago I said that the forthcoming US election would be a pivotal moment for social media platforms. It's coming true faster than I imagined.

On Friday, The North Face said it will stop advertising on Facebook, using the hashtag #StopHateForProfit and linking to stophateforprofit.org. Whether or not it was intentional, that announcement came on 19 June - a holiday in the US known as Juneteenth, when the abolition of slavery is celebrated.

Last night (Sunday), another outdoor clothing company, Patagonia, said it would be pulling its advertising from both Facebook itself and also Facebook-owned Instagram until at least the end of July. It has asked for "meaningful action" from Facebook.

The #StopHateForProfit campaign is targeted at Facebook specifically and is calling for advertisers to "send Facebook a powerful message" but the ripples of this move will be felt throughout the industry.

Make no mistake: while consumers know Facebook as a social media platform, it's an advertising company. Major brands like The North Face and Patagonia pulling their ads from the platform is a very significant step - the parent company of The North Face, VF Corp, owns brands such as Vans and Timberland and spends more than three quarters of a billion dollars per year on Facebook.

There have, over the years, been attempts by various Governments to hold Facebook and other social media platforms to account. The fact is, no Government anywhere in the world holds as much power over the platforms as advertisers. As the oldest saying goes, money talks.

It would hardly be a surprise if more brands follow the lead of The North Face and Patagonia. Once a campaign like that gathers steam, it becomes a PR issue for brands to not do it. Now that two household names have taken this step, brands will have to balance the benefits of advertising on Facebook (it's now a pay-to-play platform so by stopping their advertising those brands are effectively ceasing to engage consumers on Facebook) with the possible stigma of refusing to join the boycott.

The bad news for Facebook is that we are also at the beginning of a global economic downturn as a result of coronavirus which will lead to advertising budgets being cut for some brands, and that could be the clincher for any organisation that is deliberating the pros and cons of pulling its ads from Facebook as part of this campaign.

I knew the US election would change the social media industry. In my experience, US elections always do (I worked at Twitter during the 2012 and 2016 elections). I didn't think it would start this early and in such a high-profile manner. It's only going to continue. As I said three weeks ago, buckle up!