Brands hit back at social media

Almost one in three top brands are set to stop spending on advertising with social media platforms such as Facebook, Twitter and YouTube because of hate speech policies, according to a survey released this week.

Among major brands, 5 per cent said they have already withheld money from such platforms, and a further 26 per cent said they are likely to do so, according to a poll from the World Federation of Advertisers.

The industry lobby group says it represents 90 per cent of global marketing spending, or about US$900 billion ($1.4 trillion) a year.

About 40 per cent of companies are undecided.

Facebook has come under particular fire from organisations such as the Jewish group the Anti-Defamation League, which say it isn’t doing enough to curb hate speech.

A growing list of top-tier brands, from Starbucks to PepsiCo, said they will stop spending on the platform.

Other companies taking action include Starbucks, which says it is pausing advertising on all social media platforms, but will still post on social media without paid promotion.

Microsoft says it has paused global advertising spending on Facebook and Instagram because of concerns about ads appearing next to inappropriate content, said a person familiar with the matter.

And carmaker Volkswagen says its advertising stop on Facebook covers the direct ad accounts of brands including Porsche, Audi and Lamborghini. Volkswagen, its advertising agencies and the Anti-Defamation League will enter talks with Facebook over how to deal with hate speech, discrimination and false information, according to an emailed statement.

Others which say they are taking action include Unilever, Coca-Cola, Ford, Honda, Patagonia, Hershey and Levi Strauss.

But despite the big advertisers’ actions, Facebook is well insulated from a bluechip revolt because most of its advertising sales come from small- and-medium sized businesses.