NWSA News Corporation

By Alexandra Bruell 

BMW AG, Allstate Corp. and GlaxoSmithKline PLC have joined a growing list of brands that are pulling advertising from Bill O'Reilly's show in the wake of reports of sexual-harassment accusations against the Fox News star.

Mr. O'Reilly -- anchor of the channel's most popular show, "The O'Reilly Factor" -- is facing backlash from advertisers after the New York Times reported over the weekend that he and 21st Century Fox, the parent company of Fox News, collectively paid about $13 million to female employees who claimed they were sexually harassed or verbally abused by him.

The quick response from some advertisers highlights the intense pressure marketers can face, particularly on social media, for being associated with a show or news outlet that covers controversial topics or a personality who is accused of inappropriate behavior.

"We are continually reviewing our advertising to ensure it is conducted in a responsible manner aligned with our values," said a spokeswoman from pharmaceuticals company GlaxoSmithKline. "We have temporarily put a hold on spots running on 'The O'Reilly Factor' while we assess this situation."

A spokesman for BMW of North America said it suspended advertising with the show "in light of the recent New York Times investigation."

Fox News didn't immediately have a comment on the actions taken by advertisers. Over the weekend, 21st Century Fox stood by Mr. O'Reilly in the wake of the Times report on harassment settlements, saying he denies the merits of the allegations against him but "has resolved those he regarded as his personal responsibility."

Mr. O'Reilly, in a statement in response to the Times report, said he is "vulnerable to lawsuits from individuals who want me to pay them to avoid negative publicity." He said he put previous controversies to rest to spare his children.

21st Century Fox shares common ownership with News Corp, the parent company of The Wall Street Journal.

Mercedes-Benz and Hyundai were among the first marketers to withdraw their advertising on Monday, as earlier reported by CNN and the New York Times, following revelations of the harassment allegations. Constant Contact, an email marketing firm, and Ainsworth Pet Nutrition have also said they are pulling their ads from the program.

"Based on the recent allegations and our strong commitment to inclusion, respect and tolerance in the workplace, we have decided to pull Constant Contact's ads from 'The O'Reilly Factor,'" said Lark-Marie Anton, chief communications officer for Constant Contacts parent company Endurance International Group.

An Ainsworth spokeswoman said that the company is "very disturbed by the allegations," and "is continuing to monitor the situation very closely."

Gender equality has become a hot-button topic in areas from technology to politics to entertainment. Madison Avenue has been under the microscope in recent years for a lack of gender and racial diversity in the advertising business and its own harassment scandals. Brands like Audi, Secret, Dove and Always have also staked their brands on women's issues with advertising campaigns like Daughter, Stress Test, Real Beauty and Like a Girl.

Allstate said it suspended its advertising with Mr. O'Reilly's show because of concerns "about the issues surrounding the program." "Inclusivity and support for women are important Allstate values," the company said in the statement.

Esurance, the online insurance company owned by Allstate, said in a statement that it is "blacklisting" the show.

Not all marketers are specifying whether their suspension from advertising on the show is temporary or permanent, and it has been commonplace in the past for marketers to return to a program once the heat of a controversy cools down.

"The O'Reilly Factor" drew $178 million in ad spending in all of 2015 and about $119 million in the first nine months of 2016, according to estimates from ad-tracking firm Kantar Media.

Ainsworth, Allstate and Hyundai have said their ad withdrawals are limited to "The O'Reilly Factor" and don't extend to the rest of Fox News.

A Hyundai spokesman said that the company is reallocating upcoming ads set to air on the show "due to the recent and disturbing allegations." "As a company we seek to partner with companies and programming that share our values of inclusion and diversity," he said in a statement. "We will continue to monitor and evaluate the situation as we plan future advertising decisions."

The list of advertisers withdrawing from Mr. O'Reilly's show is expected to grow. One ad buyer said that some of its clients have pulled their advertising but declined to disclose the brands.

21st Century Fox has said it takes "workplace behavior very seriously" and reviewed the allegations against Mr. O'Reilly in recent months. The media company recently renewed his contract, which was due to expire at the end of this year, after taking that review into consideration, according to people familiar with the matter.

Fox representatives have declined to comment on Mr. O'Reilly's contract, which pays him an annual salary north of $20 million, according to people familiar with the matter.

It isn't unusual for a marketer to withdraw its ads amid a controversy. In recent weeks, marketers and advertising agencies have been pulling spending from Google's YouTube after revelations that their ads sometimes end up alongside controversial or objectionable content.

Advertisers today are also increasingly getting caught in the crosshairs of social movements that spread quickly online. For example, Judd Legum, editor of the website ThinkProgress, listed the Twitter handles of the brands still advertising on Mr. O'Reilly's show in a series of tweets on Tuesday.

The tweets mirror a movement by Sleeping Giants, an anonymous organization that late last year started calling on advertisers to boycott sites it believes are racist. On Tuesday afternoon, it launched an effort on Twitter against advertisers on "The O'Reilly Factor."

Suzanne Vranica and Joe Flint contributed to this article.

Write to Alexandra Bruell at alexandra.bruell@wsj.com

(END) Dow Jones Newswires

April 04, 2017 16:41 ET (20:41 GMT)

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