Unilever, Coca Cola suddenly announced to stop advertising on social networks globally, what’s going on?

Shares of Facebook and Twitter plummeted on Friday after Unilever, one of the world’s largest ad spenders, said it would suspend all ads in the U.S. on both platforms. from now until the end of the year.

Unilever – the company that owns many world famous consumer brands often has an advertising budget of up to $ 8 billion per year. They say they will not advertise on Facebook and Twitter and Instagram from now until the end of the year due to political criticism posts posted by users of the social networks.

” Continued advertising on these platforms at this time will not add value to people and society, ” Unilever’s statement stated. ” We will continue to monitor the situation closely and make adjustments if necessary .”

Facebook shares immediately fell after this announcement. Closing the session on Friday, their shares decreased 8.3% to US $ 216.08 per share. Meanwhile, Twitter shares fell 7.4% to $ 29.05 per share.

Facebook CEO Mark Zuckerberg responded on Friday about the growing number of misinformation posted on their platform. He said the company will label all election-related posts with links that encourage users to view them at the voters’ news center and expand the definition of infringing posts.

Unilever’s decision is thought to be similar to many other well-known consumer companies including Patagonia and Verizon Communications. All of these companies say that technology platforms – especially Facebook, benefit from posts that tend to hate and spread misinformation.

Many campaign groups have urged companies to stop spending advertising money on Facebook-owned platforms. Honda in the US also said it will join the boycott and pause advertising on Instagram and Facebook in July. Unilever is said to be more aggressive by extending the time to stop advertising until the end of the year and expand to the whole Twitter platform.

The latest information suggests that some other brands, Coca Cola, have also announced a similar move. However, Coca Cola said it would stop advertising on social networks worldwide within 30 days. ” Coca Cola will suspend all paid advertising on all social media platforms globally for at least 30 days. We will take this time to review our advertising policies to verify “We also expect greater accountability and transparency from social media partners ,” the Coca Cola representative said in a statement.

To date, more than 100 companies have joined the “boycott” of social networks.

” We invest billions of dollars each year to keep our community safe and work continuously with outside experts to review and update appropriate policies. We know there will be more. must do and will continue to work with human rights organizations and experts to develop more tools, technologies and policies to fight this, “the Facebook representative said.

The boycott of the Facbook boycott spread after CEO Mark Zuckerberg said a series of President Trump’s posts about racist protests did not violate the company’s rules. Earlier, a post by President Trump regarding the robbery protest was labeled as infringing on Twitter but not on Facebook. Shortly thereafter, several Facebook employees gathered and appealed against this.