Facebook’s data privacy scandal has done little to deter advertisers from the social media platform, according to a major ad firm.
Publicis Media CEO Steve King told CNBC that Facebook has experienced an erosion of trust after allegations that right-wing consulting firm Cambridge Analytica used millions of users’ Facebook data for fake news and other political dirty tricks.
But sentiment among advertisers remains unchanged .
“Each of these issues has had a different reaction,” King said, referring to scandals that have plagued Facebook. “Unlike the brand safety issue, none of our advertisers have paused their advertising” because of Cambridge Analytica.
The world’s third biggest advertising group, Publicis Groupe, the parent company of Publicis Media, has faced major headwinds in recent years amid shrinking client budgets and fierce competition from Facebook and Google, which take in more than half U.S digital advertising spending, according to numbers from eMarketer.
Those platforms have proven valuable for clients that want maximum exposure and the ability to target ads based on the mountains of consumer data, King said. He added that Facebook remains the second largest advertising platform Publicis Media partners with.
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