PepsiCo, Inc. is quietly joining the growing number of companies earning Facebook advertising dollars, people familiar with the matter told FOX Business.
Unlike companies like Ben and Jerry’s and Patagonia who have expressed frustration with Facebook’s policies regarding alleged racist content allowed on the site, PepsiCo has yet to make an official announcement. But people from the world’s second largest food and beverage company say the boycott will continue in July and August. They described the move as a “global boycott” of Facebook ad placement.
The move could have far-reaching implications given the size of PepsiCo – revenues of $ 67 billion last year – and the stature producing some of Corporate America’s most iconic brands, including its eponymous soft drink. PepsiCo is said to spend up to $ 2.6 billion a year on marketing, promotion and advertising, and like most large companies, it now spends a growing portion of its advertising budget on long-regarded social media platforms like Facebook as one of the best ways. to reach an online audience.
MARK ZUCKERBERG LOSES $ 7B AS BUSINESSES DELETE ADS
In fact, some large companies, seeking to cut costs amid the COVID-19 pandemic and recession, were weighing on television advertising and diverting money to cheaper online sites.
But the move came up against the massive social upheaval that followed the May 25 death of George Floyd, an unarmed black man who died while in police custody. The protests also galvanized Corporate America, with many large companies holding race relations seminars, while groups such as the National Association for the Promotion of People of Color (NAACP) and the Anti-Defamation League (ADL) called social media platforms to hate the police better. speech on their sites.
FAMILIES OF FORMER JEMIMA AUNT AMBASSADORS CONCERNED BY THE RECOMMENDATION
Facebook has long been the target of criticism that it did not act aggressively by limiting hate speech with its founder and CEO Mark Zuckerberg who resists allegations of message deletion and labeling comments as inappropriate. Criticism of Facebook’s policies intensified after President Trump released a social media statement amid George Floyd’s troubles: “When looting begins, filming begins.”
Facebook allowed the comment to remain on its site, while rival Twitter made the decision to report the statement for violating its “glorifying violence” policies.
In recent days, amid growing calls from activist groups to boycott Facebook, companies have started to remove their ads from its platform. Last week, advertising agency Goodby Silverstein announced that it was joining the boycott on Twitter. In the same statement, the company, which works with other brands, including Adobe, HP, PayPal and BMW, encouraged customers and employees to join the boycott. PepsiCo is also one of the agency’s clients.
FACEBOOK WILL BEGIN TO MARK POLITICAL CONTENT THAT WILL VIOLATE ITS POLICIES
“We will join # StopHate4Profit and stop posting on @Facebook for the month of July. We are taking this step to protest the irresponsible spread of hate speech, racism and misleading voter information on the platform. We encourage customers and our own people to join us. “, The company announced in a tweet. Goodby Silverstein is a subsidiary of Omnicom Group, one of the largest advertising agencies in the world.
It is unclear why PepsiCo has decided not to issue a press release on the go. Company spokesperson Jon Banner did not return phone calls and emails for comment. A Facebook press official also did not return calls and emails for comment.
But people inside the company say the ban is far-reaching and designed to make a statement about Facebook’s results because Facebook generates about $ 1 billion per quarter from advertising revenue. In the first quarter of 2020, Facebook posted revenues of $ 17.7 billion.
The Facebook headline fell more than 8% on Friday when the boycott expanded.
Social media companies have increasingly juggled freedom of expression with their responsibility to moderate content considered hate speech or fabricated information for political gain.
But Zuckerberg has taken a more laissez-faire approach than his Twitter counterpart, Jack Dorsey.
START FOX BUSINESS BY CLICKING HERE
At a Senate hearing in 2018, Zuckerberg told Congress: “I think there are a number of content areas that we need to better control the police in our service. Most recently, he stressed the need for an open and free platform – telling Fox News last month that he did not think Facebook should be “the arbiter of the truth.”
Zuckerberg said Friday he would change Facebook’s policy by adding labels to “newsworthy” content that violates his policies.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
“Often, seeing the speeches of politicians is in the public interest, and in the same way that the media will report what a politician says, we think people should generally be able to see it for themselves on our platforms,” a Zuckerberg writes in a blog. Publish. “We will soon start labeling some of the content that we are leaving out because it is deemed to be of interest, so that people can know when it is. “