Banks on the back foot on Facebook advertising
Local banks weigh options as New Zealand banks pull back
By Alex Sampson
Banks around the world are weighing up the risks of using social media platforms, in particular Facebook, to advertise.
In the US restrictions have been introduced by the Facebook platform itself. On Monday the social network announced it will block loan and housing ads seen as discriminatory, in an attempt to settle a string of lawsuits alleging Facebook enables discrimination in housing, credit and employment.
Facebook chief operating officer Sheryl Sandberg said the settlement was “historic” and marked an important step in the platform's broader effort to prevent discrimination and promote fairness and inclusion on Facebook.
As part of the settlement, Facebook will no longer allow housing, employment or credit ads to be targeted to particular users by age, gender or ZIP codes. "Multicultural affinity targeting" will continue to be unavailable for these ads, with Sandberg saying these ads "should never be used to exclude or harm people", noting a long history of discrimination in credit advertising.
Companies using Facebook to run credit ads will have to certify compliance with anti-discrimination laws.
Outside the US banks will need to decide whether advertising on the platform represents presents insurmountable risk and compliance concerns.
Prime Minister Scott Morrison, Communications Minister Mitch Fifield and Federal Attorney-General Christian Porter are meeting with social media chiefs next week to discuss potential new measures to restrict the distribution of disturbing content.
Morrison has also said he's taking the issue of social media companies whose platforms are used to facilitate and normalise horrific acts to the G20.
Morrison has written to G20 chairman Japanese Prime Minister Shinzo Abe calling for agreement on “clear consequences” for social media platforms and said it was unacceptable to treat the internet as an ungoverned space.
"Social media companies are international businesses and it's up to the international community to force them to act," Morrison said on Tuesday.
In New Zealand TSB Bank has suspended all advertising on social media following the Christchurch attack, saying "TSB is disappointed in the role social media played in Friday’s tragedy and thinks it’s inappropriate to continue to support this channel".
“Since Friday afternoon, other aspects of TSB’s digital advertising have been pulled to ensure sensitivity at this time,” a statement from the bank said.
Westpac New Zealand has temporarily suspended social media advertising following the Christchurch shootings.
"We will be engaging with social media companies about the publishing of harmful content," a statement on Monday said.
Bank of New Zealand said it did not support any platform being used to promote violence or hate and on Friday put an immediate hold on all its digital advertising.
"There are a number of challenging issues regarding digital platforms being raised following the Christchurch events and we’re working these through with our media partners," a spokesman said.
A joint statement from the Association of New Zealand Advertisers and the Commercial Communications Council on Sunday said the role that social media played, particularly that of live streaming, has been brought into serious question.
"Advertising funds social media. Businesses are already asking if they wish to be associated with social media platforms unable or unwilling to take responsibility for content on those sites," the statement said.
"The events in Christchurch raise the question, if the site owners can target consumers with advertising in microseconds, why can’t the same technology be applied to prevent this kind of content being streamed live?
"ANZA and the Comms Council encourage all advertisers to recognise they have choice where their advertising dollars are spent, and carefully consider, with their agency partners, where their ads appear."
In Australia banks are on the back foot. An ANZ spokesman said the bank was seeking discussions with social media organisations about what changes they can make “to proactively limit any further misuse of their platforms’ features”.
AMP said it used a “range of advertising channels”, including social media platforms such as Facebook.
“We continually review the channels we use to promote our products and services,” a spokeswoman said.
Westpac said it monitored the platforms and programs it used to communicate to ensure they met "appropriate standards".
"When we do have a concern, we address this with the management accountable for the platform," a spokeswoman said.
The Australian Banking Association said it did not have a current advertising campaign or policy, with the decision to advertise a matter for individual banks, but a spokesman said the ABA would respond further on the safety of social media advertising in the coming days.