Economy

Mark Zuckerberg becomes $7 billion poorer as firms boycott Facebook ads

Mark Zuckerberg becomes $7 billion poorer as firms boycott Facebook ads”

The video and blog post did not directly reference the rapidly growing advertising boycott of his platform over Facebook's inability to suppress hateful content.

The decision on Friday by the maker of major consumer goods, such as Dove soap, to follow other brands in an advertising boycott prompted a rare reaction from Facebook's investors.

The social media giant and others like it have already run into censorship of politically-sensitive content in the past.

Following the ad boycott, Bloomberg reported that Zuckerberg lost about US$7 billion after Facebook shares dropped 8.3% last Friday.

Canadian companies are joining a growing list of top global brands vowing not to advertise on Facebook Inc.in July because of the company's refusal to deal with the spread of hateful content on its platform.

The world's largest coffee company says it is pausing advertising on all social media platforms in the US starting at the beginning of July. As a direct-to-consumer pure play, Birchbox's move represents a bigger sacrifice than other brand moves, because it is leaving two of the top platforms for direct sellers.

"From 1 July we will pause all paid advertising globally on major social media platforms".

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The #StopHateforProfit movement - which includes the National Association for the Advancement of Colored People (NAACP) and the Anti-Defamation League (ADL) - said none of the changes would be vetted or verified in this regard. "Facebook needs to address this issue quickly and effectively in order to stop advertising exits from potentially spiraling out of control".

"The investments we have made in artificial intelligence mean that we find almost 90 per cent of Hate Speech we action before users report it to us, while a recent European report found Facebook assessed more hate speech reports in 24 hours than Twitter and YouTube", the company said in an email. Twitter had taken similar steps earlier. And while most of the 184 companies on the boycott * a href="https://docs.google.com/spreadsheets/d/1VSGhDwXm18yFf2BVCz0QJYFjCHrPhDuO-m5rCo0zoqI/htmlview?pru=AAABcyPgxSs*T6wcjzjzSikohiDqdkSuyA#gid=0" *list as of Monday morning are not large, it would "likely take tens of thousands of [smaller advertisers], acting over a significant period of time, to put a big dent in Facebook's bottom line", noted CNN Business' Brian Fung.

But like Coca-Cola, Starbucks said it was not joining that boycott.

On Friday, Mr Zuckerberg announced a new crackdown on hate speech and voter intimidation, including a warning label for posts which break its policies but remain online because they are "newsworthy".

"Overall, the policies we're implementing today are created to address the reality of the challenges our country is facing and how they're showing up across our community", Zuckerberg said in a post. Facebook, which already prohibits advertising that discriminates, also sharpened those policies on Friday with a clause saying no ads will be allowed if they label another demographic as unsafe, or if they portray immigrants, migrant groups or refugees as inferior and worthy of disgust.

Now, after beginning a review three weeks ago, CEO Mark Zuckerberg outlined changes in time for the November presidential elections.



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