Does "Bad PR" actually impact company sales and their ability to get/keep customers?

When I refer to 'bad PR', I am not talking about actual problems with the products or staff e.g. car/plane blows up/staff beats up customer, but the more 'moral' PR.

For example, advertisers are notorious for avoiding any and all controversial content to the point that they de-facto control the media that we view. Yes, media exists without these advertisers, but those with them are far more powerful and influential.

Has anyone ever been 'put off' by a product because they saw an ad on an adult/dodgy site? I have never encountered this. PayPal has a defacto monopoly and it's worried about it's 'reputation' because it could be used to buy porn games?