How a Snowball Effect is killing Facebook

Snowball effect is a figurative term for a process that starts from an initial state of small significance and builds upon itself, becoming larger, and also perhaps potentially dangerous or disastrous.

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Recently many major multinational companies including Starbucks, Verizon, Unilever, Coca Cola has stopped running ads on Facebook.

All due to the #StopHateForProfit Campaign.

It has drawn support from a fast-growing list of many giants like Pepsi, Hershey, Levi Strauss & Co., Honda (US Division), Upwork, The North face.

More than 160 companies have pulled their spending so far, vowing to pause their ads on Facebook for the month of July.

This leads to eliminating $76 billion from its market value.

Remember the Cambridge Analytica data scandal?

That time Mr. Zuck was being questioned about their ad policy in the senate. He said, " Senator, we run ads".

The company was adamant that it is not up to them if someone wants to spread hate on their platform since it is a paid space. Now when Facebook started losing money, steps were taken to change this.

Now they started labeling newsworthy content that violates its policies or spreading hate speech or discrimination claiming that their investment in artificial intelligence has allowed them to find 90% of hate speech before users report it.

Global companies are realizing the importance of this campaign and small companies are banking on the fact that this would make the ad prices go down because of the entire supply chain being trembled. Either way, it's Facebook who is at a loss because it's just a start with many more companies joining in and creating a snowball effect.