Global Economics

PepsiCo Reportedly Joins Social Media Advertising Boycott

As more and more companies join in on boycotting advertising through Facebook (FB), it’s now being reported to news outlets that PepsiCo plans to join in the boycott.

An official statement has not yet been made by the beverage company, but a tweet on Sunday by Fox’s Charles Gasparino stated, “BREAKING: Sources inside @PepsiCo tell @FoxBusiness co has “quietly” joined @Facebook ad boycott. Co has not publicly announced move being described as a ‘global boycott’ running through July August. Previously reported its ad agency @GSP joined boycott. Story developing $PEP.”

Ninety companies have now announced plans to stop advertising with Facebook and Twitter as of today. Companies, such as Unilever (UL) and Coca-Cola (COKE), are unhappy with how the social media giants have been handling racist content and misleading political advertisements. Facebook has responded to the ad pulls through Carolyn Everson, VP of the social media giant’s Global Business Group, who stated in a letter to advertisers, “We respect any brand’s decision, and remain focused on the important work of removing hate speech and providing critical voting information. Our conversations with marketers and civil rights organizations are about how, together, we can be a force for good.”

In June, Facebook has announced measures it is taking to try and address the growing concern over its policies related to hate imagery and false and misleading political advertisements. These measures include the option for Facebook users to turn off political advertisements in their newsfeeds.

The annual marketing budget for PepsiCo is a reported $2.6 billion. Given that Facebook has provided a significant platform for advertising for PepsiCo, it’s expected that investors will be watching how the move will affect the beverage company’s revenues.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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