Written By: Frank Raj
Facebook is facing a major financial pressure as major consumers companies, including Coca-Cola, Unilever, and many others pause their ad spend in protest of the way the firm moderates hate speech.
Zuckerberg’s net wealth is down by $7.21 billion, while Facebook’s share price dropped more than 8% at the close of Friday trading, as the ad boycott continues.
Coca-Cola chief executive James Quincey said that the company would halt all social media ads in Facebook for 30 days while it rethinks its policies.
Quincy said: “There is no place for racism in the world and there is no place for racism on social media.
“The Coca-Cola Company will pause paid advertising on all social media platforms globally for at least 30 days. We will take this time to reassess our advertising policies to determine whether revisions are needed. We also expect greater accountability and transparency from our social media partners.”
This came in the wake of George Floyd’s death at the hands of Minneapolis police officers and the subsequent worldwide protests. It was triggered by Facebook’s refusal to remove a post by President Donald Trump, which threatened the protesters with violence.
Trump wrote in his post, “when the looting starts, the shooting starts” and also called the demonstrators “thugs.
The #StopHateForProfits campaign launched on June 19 pressures major advertisers to rethink their ad spend on Facebook until it brings in stricter moderation policies.