When is an “ad credit” actually a refund? As Chris wrote on MusicTech.Solutions, Google advertisers should be entitled to refunds stretching back years for Google’s failure to live up to its promises to protect advertisers from their ads appearing in terror videos.
Many Wall Street analysts are trying to play down the continuing advertising controversy at Google’s YouTube, but Alphabet Inc. investors are likely jittery — and should be.
Last week, Google updated its ad policies and expanded safeguards for advertisersafter some pulled advertising from YouTube because the video streaming site was displaying ads next to inappropriate content that espoused hate or even terrorism. Google said in a blog post that it has put in place more controls for advertisers, and it is also taking a tougher stance on hateful, offensive and derogatory content….
The bigger fear for investors is that an advertiser backlash could spread from YouTube to Google’s overall search business, or cast a pall over YouTube’s planned “skinny bundle” service. Since the story broke, Alphabet shares have fallen nearly 4%.
Google’s efforts to handle the situation are getting mixed reviews from investors who see cause for concern.
“Their public statements do not suggest to us that the company appreciates the degree to which advertisers are concerned and the continuing announcements of advertisers suspending their activity on Google properties reinforces our view,” Pivotal analyst Wieser wrote.
Trip Chowdhry, an analyst with Global Equities Research, predicted that Google will need to give out ad credits to lure back advertisers, which would also impact YouTube revenue.