WHY SOCIAL MEDIA GIANTS ARE FACING ADVERTISER BOYCOTT
Angered by their handling of misinformation, companies who spend millions of dollars on the platforms are pulling out
Facebook and Twitter are facing a growing boycott by global advertisers unhappy with their handling of misinformation and hate speech, including the former’s laissezfaire attitude toward posts from US President Donald Trump.
The efforts gained traction earlier in June amid pressure from US-based civil rights organisations. Colour of Change, one of the groups backing the boycott, said that nearly 100 advertisers have joined. Many are small businesses which make up the bulk of Facebook’s 8 million advertisers. But recently, global giants who spend millions of dollars a year on the platform have also distanced themselves. Shares of Facebook and Twitter dropped sharply Friday after the behemoth behind brands such as Ben & Jerry’s ice cream and Dove soap said it will halt US advertising on Facebook, Twitter and Instagram at least until the end of the year. Here is a list of some of the major advertisers who are limiting or stopping their advertising on Facebook:
UNILEVER $42.4 million
The consumer goods giant, one of the biggest advertisers in the world, said Friday that it would stop running ads on Facebook, Instagram or Twitter in the US for at least the rest of 2020, citing a “polarised election period.” The company, which owns brands such as Dove and Lipton, said that “continuing to advertise on these platforms at this time would not add value to people and society.”
HONDA AMERICA $6 million
The Japanese carmaker, which includes Honda and Acura brands, said it would withhold ads from Facebook and Instagram in July, “choosing to stand with people united against hate and racism.”
BIRCHBOX $947,100
The beauty subscription service said Friday that it would move advertising spending in July from Facebook and Instagram to other platforms and individual content creators, after steadily reducing its reliance on the social media giant over the past two years. Birchbox said it would continue to be active on its Instagram account.
COCA-COLA $22.1 million
The beverage giant, another deep-pocketed global advertiser, said Friday that it would stop all paid ads on all social media platforms globally for at least 30 days. James Quincey, the chief executive, said in a statement that the company would use the time to reassess its advertising standards and policies and would let its social media partners know that “we expect greater accountability, action and transparency from them.” A Coca-Cola spokeswoman, however, clarified that the company was not joining the official Facebook boycott.
LEVI STRAUSS & CO $2.8 million
Jen Sey, the chief marketing officer of the clothing company, wrote a blog post on
Continuing to advertise on such platforms at this time would not add value to people and society, Unilever said while announcing its decision to stop running ads on Facebook until the end of the year.
Friday criticising Facebook’s “failure to stop the spread of misinformation and hate speech on its platform” and saying that “this inaction fuels racism and violence and also has the potential to threaten our democracy and the integrity of our elections.” Sey further wrote that Levi Strauss would suspend advertising at least through the end of July, adding that “when we re-engage will depend on Facebook’s response.”
EDDIE BAUER $1.4 million
The retailer said Tuesday that it was suspending paid ads on Facebook and Instagram through July.
VERIZON $22.9 million
John Nitti, the chief media officer of the telecommunications company, said in a statement Thursday that it was “pausing our advertising until Facebook can create an acceptable solution that makes us comfortable and is consistent with what we’ve done with YouTube and other partners.” Verizon is stopping both paid ads and unpaid posts.
LULULEMON $1.6 million
On Friday, the fitness apparel retailer voiced solidarity on Twitter with the boycott campaign and said that it was “actively engaging with Facebook to seek meaningful change.” A Lululemon spokeswoman said that the company would suspend paid ads on Facebook and Instagram.
PATAGONIA $6.2 million
The outdoor products company said Sunday that it would immediately remove ads globally from Facebook and Instagram at least until the end of July, “pending meaningful action from the social media giant.” The retailer will continue posting unpaid content on Facebook, which it said is its second-largest paid advertising platform.
REI $22.5 million
The retailer said June 19 that it was pulling all advertising from Facebook and Instagram in July.
THE NORTH FACE $3.3 million
“We’re in. We’re out,” the retailer wrote on Twitter on June 19, saying that it will stop posting content and buying ads on Facebook through July but will continue to put free posts on Instagram. The company spends more on Facebook than it does on any other platform besides Google.