Will Facebook’s News Ban Backfire?
Facebook outraged politicians, publishers and the public on Thursday, when it confirmed it would be making good on its promise to remove news content in Australia.
For many publishers, it will mean a significant drop in total web traffic overnight, while for many government organisations, brands and NGOs it has taken away a channel to communicate with customers and members.
So why did Facebook decide to take the nuclear option?
It was all about avoiding a global precedent.
Agreeing to the government’s News Media Bargaining Code here in Australia – which requires tech platforms to reimburse media outlets for news content – could leave the Zuckerberg-owned company vulnerable to similar legislation in other, more valuable, regions.
It’s also been suggested Facebook is still in talks with the government about a potential solution, which would suggest the news ban might be a short-term demonstration rather than a long-term strategy.
There’s also the fact that news does not play a significant role the Facebook business model.
Facebook Australia & New Zealand managing director William Easton revealed that news makes up less than four per cent of the content people see in their News Feed.
This would theoretically mean that the risk of advertisers moving away from Facebook is minimal, as the change should not significantly impact total traffic to the site.
According to Tug CEO and founder Nick Beck, however, advertisers will walk away not because of fewer eyeballs, but because of the way the company has handled itself.
“I don’t think advertisers will pull their budgets due to a concern of the quality of content. Facebook still has amazing targeting capabilities to reach your audience,” Beck told B&T.
“I believe Australian advertisers will pull their budget, and I’ve heard of many doing so today, because like the Australian public, they refuse to be bullied.”
Given the current high-profile dispute between Facebook and Apple over consumer privacy, which looks set to lead to an antitrust suit, Facebook is risking serious reputational damage with this latest move.
“I believe Facebook has misjudged the situation. The Australian public will not take kindly to being threatened so overtly,” Beck said.
“No matter what happens next, alongside their overt attacks on Apple for trying to improve consumer privacy, Facebook’s move will add to the growing sense, in Australia and globally, that they are the ‘worst bully’ of the tech giants.”
A year of Boycotts
If an advertiser boycott does ensue as a result of Facebook’s decision to remove news in Australia, it would come after another tumultuous year in the social media platform’s history.
Just last month, WhatsApp (which is owned by Facebook) triggered an exodus of users when it asked its 2 billion global users to accept a new privacy policy, which would allow the app to share data with Facebook.
The move sparked outrage among users and saw rival encrypted messaging services such as Signal and Telegram garner millions of new downloads instantly, as users looked for WhatsApp alternatives.
WhatsApp has since delayed the rollout of the privacy policy.
In light of the Black Lives Matter protests in July last year, Facebook was hit with a mass advertiser boycott as the #StopHateForProfit movement went into full swing.
The boycott saw more than 1,000 global companies, including Coca-Cola, Starbucks and Diageo remove advertising from Facebook.
And while any Facebook boycott in light of the news ban in Australia is unlikely to be this large, it is worth noting that “Delete Facebook,” “Boycott Zuckerberg” and “Facebook We Need To Talk” are all now trending across social media.
Latest News
Emotional Storytelling Is A Rarity, IAG CMO Brent Smart Tells Future Of TV Advertising
In an interview with Mindshare’s Katie Rigg-Smith, recently returned Australian CMO Brent Smart said advertising lacks enough emotional storytelling, and that marketers lack the support of their organisations to brand build in the long term. Smart is the chief marketing officer at Insurance Australia Group, a position he moved to after returning to Australia from […]
Imagining Life After Cookies With LiveRamp’s Deb O’Sullivan
We've busted out the crystal ball to take a look into the future. Apparently the Lotto numbers are 10, 4, 29, 3, 43, 26.
Making Steps Towards Transparency: AANA/MMI Reveal Ad Tech Shortfalls
Missed this report because you were up late watching MAFS last night? Relish in this special edition cheat sheet.
Vogue Australia Launches ‘Baby Steps’ Podcast, With Jesinta Franklin And Remy Rippon
Vogue ditching the Prada pumps and the Hermés Birkin bags for shitty nappies and vomit in new baby podcast.
Stan To Reveal Cast Of Ru Paul’s Drag Race Down Under At 2021 Mardi Gras
Stan to reveal local cast of Ru Paul's Drag Race. B&T can't confirm if Fatty, Blocker & The Big Man are in the running.
Research Commissioned By Pantene Finds Only Six Per Cent Of LGBTQI+ People In Australia Play Team Sports
Study finds LGBTQI+ community eschewing team sports. Apparently it has nothing to do with the half-time oranges either.
Monday TV Wrap: True Crime A Winner For Nine
True crime helped Nine to a comfortable win last night. That said, fake marriages also helped.
CHE Proximity Snares Ogilvy’s Gavin McLeod For Chief Creative Officer Role
Gavin McLeod brushing up on the collected works of Edward de Bono before joining CHEP as its new chief creative officer.
Cancer Council NSW Appoints Archibald Williams For CX Strategy
If there's one brand we'd all like to see suffer a sharp decline in customers it's definitely the Cancer Council.
Common Ventures Unveils First Work For Bank Australia
Why not take advantage of historically low interest rates and saddle yourself with enough debt for seven lifetimes.
Are They Listening? Why Targeted Ads Work So Well
Here's an expert piece on targeted ads. And though not explicitly inferred, it sounds like the end of skywriting to us.
Are Media Partners With Australian Geographic & Woolies For Retail Promotion
B&T is an avid reader of Australian Geographic. Well, if truth be told we hide our copy of New Idea in the middle.
JCDecaux Launches OPTIX To Improve The Effectiveness Of Outdoor Creative
When passed out drunk on a big night, B&T staff choose and recommend JCDecaux's assuaging array of street furniture.
Meet Charlie Blacker: Van-Based Photographer And Shutterstock Artist
B&T'd love to be a van-based photographer, sadly we're claustrophobic, suffer car sickness & are bad backseat drivers.
Jim Beam Debuts Global Marketing Campaign ‘Always Welcome’ In Australia, Via adam&eveNYC
Jim Beam debuts global marketing campaign 'always welcome'. B&T assumes that's not referring to the hangovers.
The Hallway Snares CHEP’s Iain MacMillan As Its Melbourne Creative Director
Can't keep up with all the ECD movements at the moment? Well, let B&T add to your boggled mind with this.
“Neo-Nazi Attack!” Channel Nine Security Guard Caught In Terrifying Fight With White Supremacist
Much like quinoa, Bundy & Coke and MAFs brides, where there's white supremacists you'll invariably find trouble.
Study Finds Motive Trumps Incentive Advertising In Persuading Consumers
Do you make ads? Then you need to read this. Even better it never refers to the marketing funnel or the omnichannel.
Initiative Perth Announces New Hires, Including Steve Hare And Briana Wells
Here's confirmation that B&T doesn't ignore our Perth readers. However, we'll continue to ignore our Tasmanian readers.
Is Your Customer Lost? Why Gaps In Your Customer Journey Could Be Costing You More Than You Think
This deep dive exposé asks "is your customer lost"? Or, are they merely taking the scenic route via your competitors.
Industry Vets Andy DiLallo & Steve Jackson Launch Creative Agency Milk & Honey United
Adland vets Andy DiLallo & Steve Jackson are launching their own agency B&T believes they'll rue not calling Lalloson.
ING Launches New Brand Direction, Do Your Thing, Via Ogilvy
Surely a better tagline for ING would be "we were one of the few banks not named in the Banking Royal Commission".
SMI Data: January Ad Spends Sink As COVID & The Delayed Oz Open Bites
Did the January numbers have your head of accounts slugging from a concealed silver flask? Data says you weren't alone.
Slingshot Wins Masterpet And Endeavour Consumer Health Accounts
Media strategy specialist Slingshot has won the strategy, planning and buying account for Masterpet, and Endeavour Consumer Health. Masterpet owns pet care brands Black Hawk, VitaPet and Aristopet, while Endeavour Consumer Health includes brands like Red Seal, Pharmacy Choice and Faulding. Slingshot CIO and Partner Simon Corbett (pictured) said that winning the two businesses was […]
New Campaign Highlights That 70% Of Australians Say They Want To Die At Home
Leading South Australian ageing care provider ECH (Enabling Confidence at Home) is shining a light on the need for Australians to talk openly about death with their family members and loved ones to ensure any specific wishes or choices can be fulfilled. Australia faces a significant societal challenge as death continues to be a subject […]
Introducing The Zavy Social Scoreboard
Introducing The Zavy Social Scoreboard You might have noticed a colourful scoreboard sitting on the B&T homepage this month. Well, allow us to formally introduce ourselves – and it. We’re Zavy. And we believe in the promise of social media: brand building by two-way engagement and rich communication. What does this have to do […]
Global Virtual Communications Consultancy fluid Expands Reach In Australia
Virtual consultancy fluid expands its reach into Australia with Brian Shrowder joining global collective of senior communications consultants
WE Communications Australia Announce New Leadership Roles
WE Communications announces new leadership roles & then communicate it superbly via this expertly penned press release.
Nimble Moves Away From The Bunny Suit In New Work Via Cyclone Creative Agency And Monster & Bear
Payday lenders are the modern equivalent of hocking a car stereo at Cash Converters.
Val Morgan Digital And TheFork Launch Thrillist Serves
Here's some foodie news for the gourmands out there. But that's not to suggest anyone can't sink their teeth into it.
