Diageo stops paying for social media advertising

The world’s largest spirits group, Diageo, has said it will no longer spend money on social media advertising, as thousands of companies are rethinking their relationships with platforms that do not adequately regulate misinformation.

Berlin, Germany – 05 21 2016: Apple iPhone 6s screen with social media applications Facebook, Instagram, Twitter, Google, Youtube, Vimeo, LinkedIn, Pinterest, WhatsApp etc.

The company, which makes Smirnoff vodka, said it will pause paid advertising globally on “major social media platforms” from July, in reaction to what it called “unacceptable content” appearing near the company’s ads.

Diageo didn’t specify which social media platforms would be included or the length of the advertising pause.

The company’s announcement came just over a week after six campaign groups called on Facebook advertisers to pause their spending on the network during the month of July. The organisations included the National Association for the Advancement of Colored People (NAACP), the Anti-Defamation League, Colour of Change, Sleeping Giants, Color of Change, Common Sense and Free Press.

Starbuck’s Levi’s Coca-Cola and Unilever have also pulled advertising from Facebook and Instagram following the launch of the #StopHateforProfit campaign.

Diageo also said it would set up a $20 million Community Fund on 12 June, designed to help black communities and businesses in the US that have been impacted by the coronavirus crisis. The pledge is part of a wider $100 million fund the company has set aside to support bars worldwide.

Diageo will publish its earnings for the year to 30 June 2020 five days later than planned this year, giving auditor PwC more time to look over the balance sheet to compensate for “the practical challenges of remote working”, according to the spirits group.

Diageo warned its could take a £200 million hit this year back in February and, two months later, CEO Ivan Menezes withdrew the company’s fiscal guidance for 2020 altogether, as executives struggled to calculate just how damaging the coronavirus outbreak and subsequent lockdowns will be.