This week many food companies have actually pulled back or even pulled out of social media, and the ... [+]
There is the saying that there is no such thing as bad PR, but some major brands might argue that point. This week many food companies have actually pulled back or even pulled out of social media, and the reason is because of the spread of negative news and divisive content that has proliferated social media.
Food Processing, the trade magazine for food and beverage manufacturers, reported just this week, "Coca-Cola, Unilever and Hershey are joining the group of companies that are pausing, reevaluating or even stopping their marketing on Facebook and other social media."
Among those companies includes Uniliver, whose brands include Ben & Jerry's ice cream and Hellman's mayonnaise, announced on June 26 that it would stop advertising on social media platforms including Facebook, Instagram and Twitter indefinitely.
"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.," the company announced in a statement on its website. "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."
This could hurt the social network's bottom line. Uniliver is among the largest of Facebook advertisers and according to NBC News spent upwards of $42.3 million last year.
The company added, "We will continue to work with our partners individually and through all industry forums such as the Association of National Advertisers (ANA), World Federation of Advertisers (WFA), Global Alliance for Responsible Media (GARM), among others, to drive action, transparency, clarify policies and create consistency in enforcement. We are confident this approach will lead to more productive progress."
As Forbes previously reported, more than 150 companies have joined in the Facebook ad boycott this week.
"This isn't totally new," explained Josh Crandall, principal analyst at Netpop Rsearch. "Big advertisers have always been concerned about the content on the sites where their advertisements are presented. Adult content sites and spammy news sites have been off limits for larger advertisers for a while. Now, these companies are finally waking up to the impact of shady and inflammatory content on social platforms as well."
Guilt By Association
Just as advertisers want to avoid controversy in other mediums – social media is now facing a similar backlash.
"There are really two parallel strategic issues behind Coca Cola and other food brands halting or placing a moratorium on their online advertising programs," explained Charles King, principal analyst at Pund-IT.
"The first clearly relates to the curiously ineffective attempts by Facebook and other social media sites to manage abusive and false content, an issue that has sent numerous advertising heading for the door," added King. "I say curious because these are companies that, by design, prosper by knowing most all there is to know about their users and communities and closely tailor content according to their preferences. So it's reasonable for advertisers to turnoff the money spigot until Facebook and other companies determine how or decide to block fallacious posts and abusive users and communities."
The second point relates to the minimal benefits that online advertising offers huge and deeply embedded brands, like Coke, Hershey and Unilever King noted. "Frankly, Facebook derives more benefits from its association with these companies than they do from being associated with Mark Zuckerberg's latest PR fiasco. Until the practical and strategic benefits of working with social media companies improves substantially, world class brands will be better off spending their advertising dollars elsewhere."
While advertisers have long been seen to control the proverbial "purse strings" in the media world, on social media advertisers could dictate content like never before – and as the world remains so divisive, perhaps that isn't a bad thing.
"We've often heard that the advertising industry has its finger on the pulse of the market," said Crandall. "Well, let's hope that we see continued change for online social media. Without any leadership coming from Washington D.C. or the boardrooms of Silicon Valley, it's heartening to see that corporate America and leading multinationals in the European Union taking a stand for the consumer, online."
