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Starbucks Pauses All Social Media Advertising In Tandem With Growing Boycott

Starbucks Corporation (NASDAQ: SBUX) is putting all social media advertising on hold as the Facebook Inc (NASDAQ: FB) advertising boycott supported by the StopHateForProfit campaign picks up pace. What Happened Starbucks said on Sunday that it stands against hate speech, adding, "we believe more must be done to create welcoming and inclusive online communities, and we believe both business leaders and policy makers need to come together to affect real change," reported CNBC.The Stop Hate For Profit campaign is calling on businesses to temporarily pause advertising on both Facebook and Instagram; it has made a series of demands from the social media firm revolving around curbing hate, violence, antisemitism, and violence. Why It Matters Facebook raked in $69.7 billion in ad revenue worldwide in 2019, according to CNBC.As on Friday, Facebook lost $7.2 billion in advertising as a result of the boycott, and the company's shares tumbled 8.3%, eradicating $56 billion in its market value.Last week, Verizon Communications Inc (NYSE: VZ) joined Unilever NV (NYSE: N) owned ice cream maker Ben and Jerry's in suspending the advertising on Facebook. According to CNBC, the boycott has grown in scale with companies such as Coca Cola Co (NYSE: KO) and Diageo plc (NYSE: DEO), a producer of spirits and beers halting social media advertising.Starbucks decision will not include Alphabet Inc.'s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube video streaming platform. The company also said it is not joining the StopHateForProfit boycott backed by organizations such as the Anti-Defamation League, the NAACP, and the Color of Change.Mark Zuckerberg, CEO of Facebook, said on Friday that some posts by politicians violating the company's policies may not be removed in the public's interest, but they will all be labeled without exception.FB Price Action Facebook shares traded 1.66% lower at $212.50 in the after-hours session on Friday. The shares had closed the regular Friday session 8.32% lower at $216.08.See more from Benzinga * Ford F-150 Gets Fresh Interior But Mostly Maintains The Same Old Look On The Outside * Alphabet's Waymo and Volvo Make A Deal To Develop Robotaxis * Airline Execs To Meet With Vice President At The White House On Friday(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Starbucks Corporation (NASDAQ: SBUX) is putting all social media advertising on hold as the Facebook Inc&nbsp;(NASDAQ: FB)&nbsp;advertising boycott supported by the #StopHateForProfit campaign picks up pace.&nbsp;” data-reactid=”19″>Starbucks Corporation (NASDAQ: SBUX) is putting all social media advertising on hold as the Facebook Inc (NASDAQ: FB) advertising boycott supported by the #StopHateForProfit campaign picks up pace. 

What Happened

Starbucks said on Sunday that it stands against hate speech, adding, “we believe more must be done to create welcoming and inclusive online communities, and we believe both business leaders and policy makers need to come together to affect real change,” reported CNBC.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Stop Hate For Profit campaign is calling on businesses to temporarily pause advertising on both Facebook and Instagram; it&nbsp;has made a series of demands from the social media firm revolving around curbing hate, violence, antisemitism, and violence.&nbsp;” data-reactid=”22″>The Stop Hate For Profit campaign is calling on businesses to temporarily pause advertising on both Facebook and Instagram; it has made a series of demands from the social media firm revolving around curbing hate, violence, antisemitism, and violence. 

Why It Matters

Facebook raked in $69.7 billion in ad revenue worldwide in 2019, according to CNBC.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As on Friday, Facebook lost $7.2 billion in advertising as a result of the boycott, and the company’s shares tumbled 8.3%, eradicating $56 billion in its market value.” data-reactid=”25″>As on Friday, Facebook lost $7.2 billion in advertising as a result of the boycott, and the company’s shares tumbled 8.3%, eradicating $56 billion in its market value.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Last week, Verizon Communications Inc (NYSE: VZ)&nbsp;joined Unilever NV (NYSE: N) owned ice cream maker Ben and Jerry’s in&nbsp;suspending&nbsp;the&nbsp;advertising on Facebook.&nbsp;” data-reactid=”26″>Last week, Verizon Communications Inc (NYSE: VZ) joined Unilever NV (NYSE: N) owned ice cream maker Ben and Jerry’s in suspending the advertising on Facebook. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="According to CNBC, the boycott has grown in scale with companies such as Coca Cola Co (NYSE: KO)&nbsp;and Diageo plc (NYSE: DEO), a producer of spirits and beers halting&nbsp;social media advertising.” data-reactid=”27″>According to CNBC, the boycott has grown in scale with companies such as Coca Cola Co (NYSE: KO) and Diageo plc (NYSE: DEO), a producer of spirits and beers halting social media advertising.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Starbucks decision&nbsp;will not include Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube video streaming platform. The company&nbsp;also said it is not joining the #StopHateForProfit boycott backed by organizations such as&nbsp;the Anti-Defamation League, the NAACP, and the Color of Change.” data-reactid=”28″>Starbucks decision will not include Alphabet Inc.’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube video streaming platform. The company also said it is not joining the #StopHateForProfit boycott backed by organizations such as the Anti-Defamation League, the NAACP, and the Color of Change.

Mark Zuckerberg, CEO of Facebook, said on Friday that some posts by politicians violating the company’s policies may not be removed in the public’s interest, but they will all be labeled without exception.

FB Price Action 

Facebook shares traded 1.66% lower at $212.50 in the after-hours session on Friday. The shares had closed the regular Friday session 8.32% lower at $216.08.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”32″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”37″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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