Facebook loses $7 Billion as companies boycott the social media giant’s advertising services. Some of the biggest companies in the world like Unilever and Verizon have joined hands in boycotting the social media giant’s advertising services due to their history with election campaigns. So which companies have boycotted Facebook ads and why? What were the consequences of this boycott? Let us have a look.
Some huge brands have boycotted Facebook Ads, with the numbers rising over 90 on Friday. One of the most notable companies among these is Unilever, who released a statement. They said that they would pause all ad campaigns through not just Facebook, but Twitter and Instagram as well. The statement read: “Continuing to advertise on these platforms at this time would not add value to people and society”.
This made Unilever one of more than 90 companies to do so, which include the likes of Verizon, Hershey’s and Honda. Many small businesses have also joined the cause, but their boycott is not doing as much harm to Facebook as the boycott of those big Multinational Companies. Here is a list of a few of the famous companies joining the boycott:
But why did this boycott take place?
The boycott campaign is called “#StopHateForProfit”. It was started by various nonprofit organizations like the Anti-Defamation League, National Association for the Advancement of Colored People, and Color of Change. These organizations urged businesses to stop buying from Facebook in July. They claim that Facebook moderates its site such that it encourages violence and discrimination, with various privacy breaches and electoral campaign roles among its other accusations.
As a result of the boycott, Facebook loses $7 billion. Facebook’s stock price fell by 8.5% on Friday, not trading at $216.08 per share when regular trading ended that day. Hence, with some of its biggest customers among those boycotting, the company was facing a crisis. How would they respond?
As a response to the boycott, Facebook was forced to release a statement, lead by CEO Mark Zuckerberg. They announced several changes in their policies for advertising in order to put their customers’ reservations at ease. For example, Facebook will no longer allow ads claiming that people from a specific race, ethnicity, religious affiliation, sexual orientation, or immigration status are a threat to others. Furthermore, It will also add warnings to posts from politicians, for instance, that may otherwise violate its policies. Moreover, the company also said it would remove false claims about polling conditions in the 72 hours leading into Election Day.
Will Facebook and Mark Zuckerberg keep their promise?
Let us know your thoughts in the comments below.