Disney slashes advertising budget on Facebook and Instagram over hate speech concerns

Disney slashes advertising budget on Facebook and Instagram over hate speech concerns

According to Deadline's Bruce Haring, the company is "slashing" its advertising spending on the social media channels.

It's the latest setback for the social network, which is facing a growing advertising boycott over its policies and actions on hate speech on its platforms.

Walt Disney has reportedly slashed its advertising budget on Facebook and its Instagram photo and video sharing service.

Disney didn't make a public announcement on its Facebook cutback, and the WSJ report cited anonymous sources.

The move by Disney to scale back advertising with Facebook comes amid the #StopHateForProfit campaign.

The campaign has so far cost Facebook at least $150 million, according to Oppenheimer analysts.

Facebook has around $70 billion in annual advertising revenue, generated from over eight million advertisers. The company spent a reported US$210 million on Facebook ads for Disney+ in the first half of the year, and a more modest US$16 million for Hulu ads on Instagram between April 15-June 30.

A spokesperson for Disney did not immediately respond when reached out. Last week, the entertainment giant finished reopening all its Orlando-based theme parks at Walt Disney World Resort.

Facebook claims it invests "billions of dollars" to keep its platforms safe, and banned 250 white-supremacist organizations from Facebook and Instagram.

The Facebook boycott attracted the support of a number of its top advertisers, including Unilever, Starbucks, Verizon, Pfizer and The Hershey Co.

"Brands are trying to lock down and stay away from the content virus that they can pick up by putting ads into environments right now that are full of maybe negative commentary and expressions", says Donovan Neale-May, executive director of the CMO Council. It claimed it was working with civil-rights groups, a leading ad trade group, and others "to develop even more tools, technology and policies to continue this fight".

"We will be judged by our actions, not by our words, and are grateful to these groups and many others for their continued engagement", Facebook said in a statement after the meeting.