This week, Brian Wieser of Pivotal Research was the first analyst to downgrade Google because of the dustup.
It began last week when marketing giant Havas pulled all of its ads from Google’s YouTube UK site following a report from the Times of London that British government ads had been placed alongside videos from white supremacist David Duke and anti-Semitic pastor Steve Anderson.
Wieser told The Post on Wednesday that the impact will be felt by Google, which instead of discussing how to take away TV ad dollars in upcoming ad negotiations will now be mired in “brand safety issues.”
“The marginal increase [in ad dollars] is less likely to occur,” Wieser said.
He said the impact on Google was likely to be around 1 percent of its revenue base, or $1 billion.
“Google’s stated solution was late and woeful,” Wieser said. “Given numerous opportunities to nip it in the bud, they’ve seemingly made it worse.”
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.
Mountain Dew banner and video ad served up by one of the ad networks in the box in the lower right corner. According to The Guardian in the UK this is the “national anthem” of Islamic State. https://www.theguardian.com/music/2014/nov/09/nasheed-how-isis-got-its-anthem
We’ve been writing about the many issues Google ads have had for years, they way they appear on everything from ISIS recruitment to pirated content sites. The way they support human trafficking. The way they can actually throw hardcore porn banner on a legitimate local news site. The worlds most ‘democratic’ ad network is being undone by the very thing that made it appear everywhere. By placing ads on everything from Youtube channels to Blogger blogs, as well as sites with editorial oversight, Google was the least controlled ad market in the world. As well as the worlds largest, and possibly the laziest as Google suggested that the brands themselves should police the piracy sites, which would be the ad networks job, not the ad buyers.
Brands soon took the brunt of appearing on pirated sites, or having their ads support their competitors Youtube channel, receiving complaints and boycotts from consumers. The final straw was the ‘extreme’ content. For years violent, pirated, and controversial videos have been uploaded and monetized on Youtube and finally hundreds of companies suspended advertising in “row over extremist content” according to The Times in the UK.
In light of the Google/YouTube boycott by brands whose ads have appeared next to hate speech. We thought we’d reprint this piece from November 2014!! Forget exploitative pay from Spotify! Do you want your music on YouTube Music? Will you be alongside Hate rock songs? Jihadi Recruitment Music Videos? Probably. YouTube is full of this […]
This is your brand. This is your brand on YouTube violating the patriot act.
Google can’t even keep its own ads off of the Hezbollah channel. The UN and US Government list Hezbollah as a terrorist organization. Is the usual YouTube ad rev split going on? If so isn’t Google providing funds to groups that support terror and isn’t that a violation of the patriot act?
[Editor Charlie sez: How can Schmidt do that with his mouth while eating his foot?]
Although improvements are being made, there’s no foolproof way for Google to guarantee a brand’s ads won’t appear against questionable content on YouTube and other sites that serve Google ads, according to a top executive at the company.
Eric Schmidt, the former Google CEO and current chairman of its parent company Alphabet, said in an interview with Maria Bartiromo on Fox BusinessThursday that the company “can’t guarantee” ads will not appear against content its advertisers might find inappropriate.