Coca Cola will pause advertising on all social media platforms globally while Unilever, owner of Ben & Jerry's ice cream, said it would stop advertising on Twitter, Facebook, and Instagram in the USA through 2020, according to BBC News.
The moves comes in after the organisers of the #StopHateforProfit campaign, which accuses Facebook of not doing enough to stop hate speech and disinformation, said the "small number of small changes" would not "make a dent in the problem".
Starbucks, Unilever, Coca-Cola, PepsiCo, Verizon Communications, Magnolia Pictures, Patagonia, Recreational Equipment Inc, The North Face, Upwork Inc and Rakuten Viber are some of the major brands that have announced either a boycott or pause of advertising on Facebook. The dive in value happened after Unilever, one of the largest advertisers in the world, joined the list of major companies that suspended their ad campaigns on Facebook and its subsidiary Instagram.
Earlier in the weekend, FTSE 100 firm Diageo, the drinks maker behind Smirnoff vodka and Guinness, also joined a flood of advertisers warning they would suspend social media spending amid controversies over hate speech.
Common Sense, Free Press as well as USA civil rights groups Anti-Defamation League and Color of Change launched the campaign after George Floyd's death in the hands of a Minneapolis police.
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Lululemon, a fitness apparel retailer, which spends Rs268 million ($1.6 million) on ads, voiced solidarity on Twitter with the boycott campaign and said that it was "actively engaging with Facebook to seek meaningful change". He said social media companies need to provide "greater accountability and transparency". The social-media giant makes almost all of its revenue from advertising.
Organisers of an advertising boycott campaign say they are preparing to go global. They include calls to "stop recommending or otherwise amplifying groups or content from groups associated with hate, misinformation or conspiracies to users" and to "find and remove public and private groups focused on white supremacy, militia, antisemitism, violent conspiracies, Holocaust denialism, vaccine misinformation and climate denialism". Facebook will also not follow a similar policy to fight voter suppression ahead of the 2020 USA presidential election.
Bloomberg noted that prior to the boycott, Facebook "was already bracing for weakness in the second quarter, which ends this week", with CFO Dave Wehner having warned in an April earnings call that he saw the "potential for an even more severe advertising industry contraction". At around the same time, Coca-Cola said it was also pulling all its social-media advertising for 30 days.
"It would likely take tens of thousands of them, acting over a significant period of time, to put a big dent in Facebook's bottom line", CNN reports.
On Friday, Facebook CEO Mark Zuckerberg announced what he said are new policies to provide authoritative information about voting, crack down on voter suppression and fight hate speech.