Facebook FB founder and CEO Mark Zuckerberg announced Thursday new ways the company says it will help in securing the integrity of the 2020 U.S. presidential election.
What Happened: In a Facebook post, Zuckerberg said the company would “block new political and issue ads during the final week of the campaign.”
There's a big exception: advertisers will continue to be able to run ads they started running before that final week and adjust the targeting for the ads, the CEO said.
Why It Matters: Advertising is the key source of revenue for Facebook. In February, eMarketer forecast that political spending would hit $6.89 billion for the 2019-2020 season, an increase of 63.3% from the 2015-2016 election season.
Digital is expected to account for $1.34 billion of the new total, up 203% from the comparative period. The firm estimates that Alphabet Inc GOOG GOOGL and Facebook control 60.8% of the digital ad market in the U.S.
Together the two control 77.6% of political ad spending.
TV ad spending for the political season was forecast at $4.55 billion. That figure could increase if the advertising dollars shift to TV in the campaign's final week.
In a close election, campaigns may be waiting for last-minute ads and will now have to decide where to put them.
Rivals Google and Twitter TWTR could also see gains in political advertising revenue given the shorter Facebook schedule.
Democratic presidential nominee Joe Biden's campaign has already gotten creative with targeting new markets like video game players though a deal to include campaign signs in Nintendo’s NTDOY “Animal Crossing: New Horizons.”
What’s Next: Facebook shares were down 3.76% to $291.12 at the close Thursday. Shares hit a 52-week high of $304.67 last week. Facebook shares are up 47% in 2020.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.