Bloomberg News

Limbaugh Has Advertisers Recalculating Web’s Power: Tech

March 15, 2012

A day after Rush Limbaugh called Georgetown law student Sandra Fluke “a slut,” Angelo Carusone, a Washington-based activist, began contacting advertisers to boycott Limbaugh’s show -- over the phone, via e-mail, through Twitter Inc. and on Facebook Inc. (FB)

Twenty-four hours later, six companies, including Geico Corp. (156714Q) and Citrix Systems Inc., dropped their ads on the conservative radio program. After three days, 18 more companies, including AOL Inc. (AOL) and Sears Holdings Corp., pulled their marketing. Before the week was out, 27 more, including Netflix Inc. and Capital One Financial Corp., cut spots from “The Rush Limbaugh Show,” heard by more than 13 million listeners daily.

“The boycott wouldn’t have had the same effect without Twitter or Facebook,” said Carusone, campaign director for Media Matters for America, which is dedicated to “monitoring, analyzing, and correcting conservative misinformation in the U.S. media,” according to its website. He was careful to add that others across the Internet fueled a campaign that thus far has prompted at least 51 advertisers to cut ties to Limbaugh -- in less than eight days.

While threats of boycotts over content are as old as old media, online social outlets have matured -- both in use and perception -- to the point that major corporations now weigh these campaigns more seriously and with an urgency not seen before. The collective power of social media to specifically target a group of companies has never been more dramatically on display than in the Limbaugh incident, shaking companies as diverse as San Diego-based ProFlowers and Dearborn, Michigan- based Ford Motor Co. (F)

Facebook ‘Likes’

Clear Channel Communications Inc.’s Premiere Radio Networks, which distributes Limbaugh’s show, said most participants in these online efforts aren’t customers of the businesses they reach out to and are driven by “professional special interest groups.”

“If one is discussing social media activity and success, please note that Rush has more than 1 million ‘likes’ on Facebook and more than 2.3 million unique visitors to his website monthly,” said Rachel Nelson, a spokeswoman for Premiere, in an e-mail.

‘Vocal Minority’

Whether the Limbaugh boycott continues or withers -- Limbaugh himself has said dropping advertisers is like “losing a couple of French fries in the container when it’s delivered to you in the drive-thru. You don’t even notice it” -- the questions it has raised for companies have taken center stage.

“Should a vocal minority drive major business decisions?” said Scott Monty, the social media director for Ford. “Or are they a minority that is using the online space as a platform when they don’t have purchase power or influence that others have? From a data and analysis perspective, the jury is still out on that.”

Fluke came under attack after testifying before Congress and supporting President Barack Obama’s regulations mandating insurance coverage of contraception. Limbaugh had started to criticize Fluke earlier in the week, for at least three days, according to Carusone, culminating in his remark on Feb. 29: “What does that make her? It makes her a slut, right? It makes her a prostitute.”

Ford on Twitter

Within 24 hours of that statement, Carusone and his colleagues at Media Matters started making calls, beginning with national advertisers. “I knew they would appreciate the heads- up,” he said. “The stakes are higher for them.”

Carusone reached Ford’s Monty through Twitter and sent him a link to an audio recording of Ford’s ads that he uploaded to Google Inc. (GOOG)’s YouTube site.

“We were alarmed that people were hearing Ford ads on the Limbaugh show,” Monty said in a phone interview. “But we wanted to confirm.”

It took at least two days for Ford to corroborate Carusone’s claims. A few days later, the company asked radio stations syndicating Limbaugh’s shows to make sure its ads weren’t airing.

Monty said Ford never advertised on Limbaugh on purpose and that its ads aired either as a result of a mistake on the part of a radio station or because Ford’s ads aired on a network that included Limbaugh. Many other advertisers, according to Carusone, reacted similarly, saying they didn’t know their marketing messages were on Limbaugh’s show.

Social Media Activity

Monty, who joined Ford more than three years ago to lead its social media effort, said industries in general no longer consider his title mere window dressing to spruce up a company’s image for the Internet audience. Ford’s quick response to Monty’s information was evidence of how seriously the company considers these online outlets.

“Ford has taken a much more active role in social media,” he said. “We’re listening to customer complaints. But it’s also a way to keep track of what they like, too. We’re much better than we were even a year ago.”

At the same time Carusone was contacting advertisers, Nita Chaudhary began her own, parallel effort. Chaudhary, who co- founded women’s-rights group UltraViolet last year, said she was incensed after reading through a transcript of Limbaugh’s “slut” comments.

She spent that afternoon finding Limbaugh advertisers, via the Web and through Media Matters’ website, which had started to track who was still airing marketing on the show. Washington- based UltraViolet and Media Matters aren’t affiliated.

Catering to Women

Chaudhary decided to specifically target the online florist ProFlowers because “this is a company that caters largely to women,” she said in a telephone interview. “Nobody should want to have a part of what Rush said. He just called a vast part of their customer bases ‘sluts.’”

UltraViolet, which has a full-time staff of two, reached out to its members and collected 100,000 signatures online in two days for a petition asking ProFlowers to boycott the show.

Chaudhary estimates around 30,000 of those followed up with calls to ProFlowers’ customer complaint line, wrote posts to its Facebook page and made comments on Twitter, mentioning the company’s account the weekend after Limbaugh’s Fluke comments.

The ProFlowers Facebook page was riddled with thousands of comments by March 3, two days into Chaudhary’s petition. One read: “I will not buy products from ProFlowers ever again.”

The following day, four days after Limbaugh controversy erupted, ProFlowers retreated. The company announced it would suspend its advertising on the show, posting on its Facebook page: “Mr. Limbaugh’s recent comments went beyond political discourse to a personal attack and do not reflect our values as a company.”

“It worked,” Chaudhary said.

Jen Carroll, a spokeswoman for ProFlowers, declined to comment.

Even with UltraViolet’s small size, Chaudhary said its “organizing was so effective because people were in an information environment -- as they’re Googling it a tweet comes in, or they get an e-mail from us giving them a way to take action. If the information environment had not existed, this would have been a slower campaign.”

To contact the reporter on this story: Edmund Lee in New York at elee310@bloomberg.net

To contact the editor responsible for this story: John Brecher at jbrecher4@bloomberg.net


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