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Twitter and Facebook Face Advertising Problem

On Friday, Unilever (UL) announced it would stop advertising with both Facebook (FB) and Twitter (TWTR), citing concerns about content and other advertising allowed on both platforms.

In a statement on their site on Friday, Unilever explained their decision saying, “Given our Responsibility Framework and the polarized atmosphere in the U.S., we have decided that starting now through at least the end of the year, we will not run brand advertising in social media newsfeed platforms Facebook, Instagram and Twitter in the U.S. Continuing to advertise on these platforms at this time would not add value to people and society. We will be monitoring ongoing and will revisit our current position if necessary.”

Unilever is one company in a growing list of companies pulling out of advertising with the two social platforms. Other companies who have announced they’re halting advertising include Coca-Cola (COKE), Verizon (VZ), Eddie Bauer, Birchbox, Upwork, North Face’s parent company V.F. Corporation (VFC), Patagonia, and 83 more companies.

In response to the widespread advertising pull-out, Facebook said they would implement new policies to restrict hate-promoting advertising and misleading political ads. Twitter released a statement saying, “We have developed policies and platform capabilities designed to protect and serve the public conversation, and as always, are committed to amplifying voices from underrepresented communities and marginalized groups.”

Facebook and Twitter stocks were down over seven percent on Friday. Investors are expected to be watching as both companies work to revise policies and procedures surrounding their advertising.


Disclosure: I/we have no positions in 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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