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One after another, advertisers are dumping Facebook. Shares down 8% in 24 hours
The list of companies boycotting Facebook for how it handles misinformation and hate speech – and problematic posts by US President Donald Trump – is growing.
Facebook depends on advertising for almost 100% of its revenue.
On Friday, CEO Mark Zuckerberg saw R120 billion of his wealth disappear as investors dumped the stock, sending the share price down by 8%.
Some of the brands supporting the #StopHateforProfit campaign against Facebook by boycotting it include Coca-Cola, Unilever, Honda, Starbucks, Diageo and Levi Strauss.
Procter & Gamble - the world’s largest advertiser – said on Monday it's considering pausing its spending on Facebook.
“There is no place for racism in the world and there is no place for racism on social media,” Coca-Cola CEO James Quincey said on Friday.
“We expect greater accountability and transparency from our social media partners."
StopHateforProfit started after Facebook refused to remove a post by Trump threatening #BlackLivesMatter protesters with violence.
“When the looting starts, the shooting starts," posted Trump.
The Money Show's Bruce Whitfield interviewed Richard Lord, Media and Operations Director at Meta Media.
We’ve never seen anything quite like this before… The world has galvanised around #BlackLivesMatter…
Richard Lord, Media and Operations Director at Meta Media
For some advertisers, it’s a tick-box exercise… We’ve seen boycotts before – they don’t last very long… Time will tell whether this is a PR exercise…
Richard Lord, Media and Operations Director at Meta Media
Facebook has in the past promised sweeping reforms… it’s making the right comments at the moment… But, is it going to be enough?
Richard Lord, Media and Operations Director at Meta Media
Listen to the interview in the audio below.
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