Big global brands still wary of returning to Facebook

New Delhi: Over a month after several large companies announced plans to temporarily halt paid campaigns on major social media platforms such as Facebook, Instagram and Twitter, Indian arms of some of these global companies continue to hold back paid advertisements on these platforms.

Several global companies, including Unilever, Coca-Cola, Diageo, Levi’s, Hershey's, Dockers, PepsiCo Inc, and others likeThe North Face and Patagonia announced their plans to shun advertising on social media over concerns that these platforms are doing little to prevent the spread of hate speech, discrimination, and misinformation.

The move gathered pace in the last week of June with several advertisers announcing plans to curb advertising for 30 days to several months while seeking greater accountability from social media platforms.

Closer home, several global brands have since restricted their exposure to social media platforms. Companies such as Diageo, PepsiCo Inc, Levi’s and Coca-Cola have had limited paid promotions on Instagram and Facebook since end June.

The story was first reported by The Economic Times newspaper.

Apparel brand Levi’s that had stopped ads on several social media platforms, resumed them earlier this month, said a person privy to the matter.

Company executives and brand experts reckon that the disengagement with the platforms, largely led by global brands, will continue at least for some more time.

“This will continue for some time and one needs to see what action needs to be taken. Facebook does need to get its act together, they are getting into the controversy more often, better stakeholder management is required," said an executive at a packaged goods company.

India’s digital advertising market is fast growing and is pegged at an estimated â‚¹17,000 crore with brands engaging on multiple platforms including Facebook, Google search, YouTube banners, apart from engagement on Instagram and Twitter.

But concerns around the spread of fake news, hate speech and content moderation continues among brands.

A recent article in the Wall Street Journal said a Facebook executive in India went soft on hateful posts by members of the country’s ruling Bharatiya Janata Party (BJP). In the aftermath, the Congress party has written to Facebook CEO Mark Zuckerberg to look into the allegations, according to a report by the Hindustan Times newspaper.

Liquor company Diageo too has paused paid advertisements on social media in several markets, including India. “Diageo strives to promote inclusion and diversity, including through our marketing campaigns. From 1 July we will pause all paid advertising globally on major social media platforms. We will continue to discuss with media partners how they will deal with unacceptable content," the company said in its global statement in June.

Coca-Cola which stopped advertising for 30 days in July hasn't returned on social media platforms yet.

“I think international brands will follow the global dictum. Not sure any native Indian brand is adopting this stance. I think International brands will have to toe the line. They may not have a choice," said advertising veteran M G Parameswaran.

Facebook has maintained its stance on the matter stating that it does not profit from hate.

In a 1 July Facebook blogpost, Nick Clegg, vice-president, global affairs and communications, Facebook, said that: "Billions of people use Facebook and Instagram because they have good experiences — they don’t want to see hateful content, our advertisers don’t want to see it, and we don’t want to see it. There is no incentive for us to do anything but remove it. Facebook does not profit from hate. Billions of people use Facebook and Instagram because they have good experiences — they don’t want to see hateful content, our advertisers don’t want to see it, and we don’t want to see it. There is no incentive for us to do anything but remove it."

Another top executive at an advertising agency said the request to reduce advertising exposure to large social media platforms was limited to global brands.

Branding expert Harish Bijoor said brands in India tend to tread on the line of caution. “There have been no overt and clearly stated pull outs in India related to specific cause," said Bijoor. He said if and when you pull out, you are exposing your cards and are taking a stance. "And when you do, you distance one set of your consumers. Brands don't want that. Brands want to look and stay neutral as it is best for business."

Big global brands still wary of returning to Facebook