Facebook has a PR problem. Again.

Unilever says it will halt U.S. advertising on Facebook and Twitter for at least the remainder of 2020, citing divisive content on the platforms.

It is not the only one as it joins some other 90 brands such as Coca Cola, Levi’s, Dockers, North Face, Ben & Jerrys, Verizon etc.

Two things:

1. Financially Facebook is not too affected as the bulk of its money comes from circa 8 million small businesses spenders while the top 100 advertisers bring in less than 20% of revenues.

Also notable, in 2017-2019 YT had the same problem and came out ok.

2. But this puts pressure on Facebook, as this doesn't have only a monetary impact but also a product one, and Facebook’s reaction looks really defensive. They keep saying they will change and become better at doing their business, just like a broken record - if you know how media works and still believe an iota from what FB says, it’s on you.

Also interesting to think about timing i.e. whether in times of economic boom big brands would have done the same - these days the consumer demand is pretty weak anyways as the economy is bad.

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