Disney is reportedly slashing its Facebook ad spend.

Slashing, not halting, according to The Wall Street Journal.

It’s being said that Disney is slowing down its spending due to increasing corporate pushback against Facebook and it’s handling of what some consider to be “hate speech.”

Walt Disney Co. has dramatically slashed its advertising spending on Facebook Inc., according to people familiar with the situation, the latest setback for the tech giant as it faces a boycott from companies upset with its handling of hate speech and divisive content.

Disney was Facebook’s top U.S. advertiser for the first six months of 2020, research firm Pathmatics Inc. estimates. It joins hundreds of other companies that have paused spending, including Unilever PLC, Starbucks Corp., Ford Motor Co., Verizon Communication Inc. and many small marketers.

Civil-rights groups including the Anti-Defamation League and NAACP called on advertisers to pull ad spending for July, arguing Facebook hasn’t made enough progress enforcing its policies on hate speech and misinformation.

That Disney is hemorrhaging cash and probably wasn’t going to overspend on Facebook anyway isn’t really addressed. Disney cut its budget quietly, and again, doesn’t appear to be boycotting Facebook — just cutting back on its ad spend.

Facebook, currently the second largest digital advertising platform, hasn’t seen its stock take a hit yet. In fact, its stock value is rising as it preps a “TikTok competitor.”

Disney Influencers Still Live on Facebook-owned Instagram.

Disney is reportedly “pausing” its Hulu ad spend on Instagram. There’s no mention as to whether or not Disney still uses the platform to advertises its other business divisions — specifically, the Parks.

Disney has helped create a cottage industry of “Disney Lifestylers” on Instagram. It’s Disney’s social media platform of choice, and everything from drinks to walls to spirit jerseys are literally designed to be “Instagrammable.”

Disney would be cutting off Mickey’s nose to spite his face if they cut spending to Facebook and Instagram entirely. The major of “Disney Lifestylers” congregate and promote on Instagram, and abandoning the platform could be catastrophic for the company.

Money talks, and Mickey needs his cheddar.

Given how much reach Facebook and Instagram have over Disney’s target audience, it’s likely they’ll be back when the public’s interest in the boycott wanes.

[Source: Wall Street Journal]