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Reading: Unilever Bows To X Following ‘Advertiser Boycott’ Lawsuit
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B&T > Advertising > Unilever Bows To X Following ‘Advertiser Boycott’ Lawsuit
AdvertisingTechnology

Unilever Bows To X Following ‘Advertiser Boycott’ Lawsuit

Tom Fogden
Published on: 14th October 2024 at 12:45 PM
Tom Fogden
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X (formerly known as Twitter) has dropped Unilever from its wide-ranging ‘advertiser boycott’ lawsuit that saw Elon Musk’s company sue the Global Alliance for Responsible Media (GARM) and its members. 

In a statement, X said that it was “pleased” to have reached an “agreement with Unilever and to continue our partnership with them on the platform”.

A court filing in the US confirmed the change to the lawsuit, which still affects a range of companies. In August, X launched legal action against GARM, the World Federation of Advertisers (WFA) and four large advertisers—including Unilever—blaming them for co-ordinating an advertising boycott that has cost the company billions of dollars in advertising revenues.

London-based Unilever—whose products include Dove soaps, Hellmann’s condiments and Pepsodent toothpaste—said in a statement it had “reached an agreement with X, which has committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform.”

Alongside Unilever, X’s lawsuit also targeted Mars, CVS Health and Danish renewable energy company Orsted.

X’s statement added that “Today’s news is the first part of the ecosystem-wide solution and we look forward to more resolution across the industry”.

Just two days after X opened the lawsuit, GARM shut its operations. WFA CEO Stephan Loerke emailed members saying the decision was “not made lightly” but that GARM is a non-profit with limited resources.

X’s CEO, Linda Yaccarino, said that GARM’s closure was an “important step” as “no small group should be able to monopolise what gets monetised”.

A recent Fidelity report posited that X (or Twitter, as it was then) has lost around 80 per cent of its value since Musk acquired it in late 2022. Similarly, a Kantar study found that more than a quarter of marketers are planning to cut their spend on the platform during the coming year.

Only 4 per cent of marketers now think X ads provide brand safety, which pales in comparison with the likes of Google (36 per cent).

Marketers’ overall trust for X ads has fallen from 22 per cent to 12 per cent since 2022. A net 15 per cent of marketers were favourable towards X ads in 2022, now a net 21 per cent of marketers are unfavourable.

X isn’t the only platform that gets a beating, TikTok is also lagging in trust while YouTube, Instagram and Netflix lead the race among digital platforms.

The study also found a disconnect between consumer ad preferences and marketers. Consumers have more positive attitudes towards ads in cinema, newspapers, magazines and out of home.

Newspaper, magazine and cinema are three channels that marketers plan to decrease their budgets most.

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Tom Fogden
By Tom Fogden
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Tom is B&T's editor and covers everything that helps brands connect with customers and the agencies and brands behind the work. He'll also take any opportunity to grab a mic and get in front of the camera. Before joining B&T, Tom spent many long years in dreary London covering technology for Which? and Tech.co, the automotive industry for Auto Futures and occasionally moonlighting as a music journalist for Notion and Euphoria.

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