Market Overview

Verizon's Decision To Halt Facebook Advertising Was Not Political, Says CEO

Verizon's Decision To Halt Facebook Advertising Was Not Political, Says CEO

Verizon Inc (NYSE: VZ) CEO Hans Vestberg said the company stopped advertising on Facebook Inc’s (NASDAQ: FB) platforms after seeing ads appear next to inappropriate content.

What Happened

Talking to CNBC on Monday, Vestberg said that Verizon’s decision to suspend advertising on Facebook and Instagram was not driven by politics but rather “a very high standard for our brands.”

Vestberg revealed why Verizon stopped the ads saying, “what happened was that certain things on Facebook that were appearing next to our content were not compliant with our standard agreements with Facebook. So we decided to pause and work with them to see how we can avoid this in the future.”

The CEO also disclosed that Verizon had ironed out similar issues with Alphabet Inc’s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube in 2017 to its satisfaction. 

Vestberg did not comment on what it wants Facebook to change. 

Why It Matters

Verizon is the 88th largest advertiser on Facebook for 2019 and spent $23 million in advertising dollars on the platform last year, noted CNBC.

The advertiser boycott of Facebook has grown since last month when Verizon stopped advertising on the company’s social media platforms. 

Companies that support the boycott called by #StopHateForProfit, a joint initiative of civil rights organizations or that have halted social media advertising include Starbucks Corporation, (NASDAQ: SBUXUnilever N.V., (NYSE: UN), and Coca Cola Co (NYSE: KO)

Last week, Facebook CEO Mark Zuckerberg said he will not change the company’s policies or approach because of “a threat to a small percent of our revenue, or to any percent of our revenue.”

Price Action 

Verizon shares traded 0.18% higher at $55.34 in the after-hours session on Monday. The shares had closed the regular session 0.82% higher at $55.24.

Image: Verizon


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