By Suzanne Vranica 

Consumer goods giant Unilever PLC said it will halt U.S. advertising on Facebook Inc. and Twitter Inc. for at least the remainder of the year, citing hate speech and divisive content on the platforms, a significant escalation in Madison Avenue's efforts to force changes by the tech companies.

Unilever, whose many household brands include Dove soap, Hellmann's mayonnaise and Lipton tea, joins a growing list of companies that are boycotting Facebook for varying lengths of time, including Verizon Communications Inc., Patagonia Inc., VF Corp., North Face, Eddie Bauer and Recreational Equipment Inc.

"Based on the current polarization and the election that we are having in the U.S., there needs to be much more enforcement in the area of hate speech," said Luis Di Como, Unilever's executive vice president of global media, in an interview.

"Continuing to advertise on these platforms at this time would not add value to people and society," the company said. Its Facebook ban also will cover Instagram.

The Facebook advertising boycott came after civil-rights groups including the Anti-Defamation League and NAACP called on brands to pull ad spending from Facebook for July. The groups said the social-media giant hadn't made enough progress enforcing its policies on hate speech and misinformation.

Twitter wasn't a target of the civil-rights group's boycott call, but it has also come under scrutiny on Madison Avenue.

Representatives from Facebook and Twitter were unavailable for immediate comment.

Facebook has taken some steps in recent years to better police its platforms, adding workers and developing new technology. That has resulted in the removal of hate speech and other objectionable content.

"We acknowledge the efforts of our partners, but there is much more to be done, especially in the areas of divisiveness and hate speech during this polarized election period in the U.S.," Unilever said. "The complexities of the current cultural landscape have placed a renewed responsibility on brands to learn, respond and act to drive a trusted and safe digital ecosystem."

Mr. Di Como said Unilever would like to see a reduction in the level of hate speech on the platforms and wants independent companies to measure and confirm that progress has been made.

Unilever, which is one of the biggest ad spenders in the world, said it will shift its U.S. ad dollars that have been earmarked for Facebook and Twitter to other media. Unilever spent $42.3 million on Facebook ads in the U.S. last year, research company Pathmatics Inc. estimates. Unilever declined to comment on its ad spending.

The big tech platforms have been under increasing pressure -- from politicians, outside groups, and their own users -- to crack down harder on misinformation and hate speech. Facebook, in particular, has become a target because of its position that political speech, including comments by President Donald Trump, generally shouldn't be fact-checked and removed.

Tensions have been heightened since the widespread U.S. protests spurred by the killing of George Floyd, and the resulting national dialogue about race and police brutality. But many concerns about the platforms have been festering for years. The Anti-Defamation League, for example, has long pushed Facebook to view Holocaust denial as a form of hate speech.

Corporate advertisers, whose ad spending is the financial foundation for tech giants, have applied pressure as well -- sometimes quietly, behind the scenes, sometimes in public. The latest boycott represents a substantial escalation, especially with the addition of bigger players like Unilever and Verizon. Verizon said it was pausing its advertising until Facebook can create a solution that makes the company comfortable.

Motives for joining such boycotts can be all over the map. Some companies see a chance to get positive attention for taking a stand on a social matter. Others are worried about their brand's association with controversial content -- and, if history is a guide, they may return to advertising when the dust settles. Some see an opportunity to strike a blow at the powerful digital platforms.

And for others, ad boycotts are a moral fight that is worth having even if it hurts their business.

For many companies, pulling ads off Facebook is a difficult proposition, because it is such an efficient marketing vehicle and has so much data on consumers to help target ads. Unilever said it isn't removing Facebook and Twitter ads in non-U.S. markets because the divisive content is currently more pronounced in the U.S.

Unilever has been a leader in demanding that tech giants clean up the digital ad ecosystem. It has pushed them to police advertising fraud and has been outspoken about the lack of transparency in Facebook's and Google's metrics that show whether advertising is working.

Unilever also has taken stances on social issues: This week, it said it would discontinue the name "Fair & Lovely" for its international skin-lightening cream, acknowledging it reinforces the racist notion that light skin is better. The product will still be sold. The company has also been working to eliminate stereotypical portrayals of women in its advertising.

Procter & Gamble Co., another consumer products giant that is highly influential on Madison Avenue, said it is reviewing all platforms on which it advertises for objectionable content. Facebook is included in that review, according to a person familiar with the matter. The company's marketing chief, Marc Pritchard, on Wednesday vowed that the company wouldn't advertise "on or near content that we determine is hateful, denigrating or discriminatory."

Write to Suzanne Vranica at suzanne.vranica@wsj.com

 

(END) Dow Jones Newswires

June 26, 2020 13:23 ET (17:23 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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