Mark Zuckerberg loses US $7.2 Billion After Companies Boycott Facebook Ads

Mark Zuckerberg loses US $7.2 Billion After Companies Boycott Facebook Ads

The action of various companies like Unilever and the Coke who claimed the suspension of their ads on social networks, as affected Facebook with a 8.3% drop last Friday (26) and a loss of US $ 56 billion of the company’s market value.

According to Bloomberg, with this devaluation, the company’s president, Mark Zuckerberg, saw his personal wealth drop by US $ 7.2 billion.

Unilever, owner of many brands of household products such as Dove soap, Hellmann’s mayonnaise and Lipton tea, joins a growing list of companies that are boycotting Facebook for varying periods of time, such as Verizon Communications, Patagonia, VF Corp., Eddie Bauer and Recreational Equipment.

The measure of the brands is an important milestone in the escalation of advertisers’ efforts for technology companies to adopt changes in relation to the content published on the networks.

“Based on the current polarization and the election that we will have in the US, there needs to be a lot more oversight in the area of ​​hate speech,” said Luis Di Como, executive vice president of global media at Unilever.

“To continue advertising on these platforms at this time would not add value to people and society,” said the company.

The suspension, which is expected to last until the end of the year, also affects Instagram.

Coca-Cola went further than most advertisers, and said on Friday that it will suspend advertising spending on all social media platforms for at least 30 days – including Facebook, Instagram, Twitter, YouTube and Snap.

In response to pressure from advertisers, the Facebook also announced on Friday that it will start tagging posts with political discourse that violate its rules and will take other measures to prevent repression of voters and protect minorities against abuse.

Facebook’s concern about the boycott of major brands on social media is no wonder. Advertising is part of almost all of the company’s revenue.

In the first quarter of this year, the company’s total sales closed at US $ 17.7 billion, of which 98% or US $ 17.4 billion came from advertising , according to the report released to investors.

Facebook, however, said it does not make political decisions because of revenue pressure, and a spokesman said the changes are a result of Zuckerberg’s commitment to prepare for the next election.