Mar 28, 2017 08:56 AM EDT
Google Might Face $750 Million Revenue Loss Due To Growing YouTube Boycott
Google could face a loss of up to $750 million due to a number of companies suspending their advertisement on Youtube. This is because they fear Google's lack of ability to prevent these companies marketing materials from appearing on videos with offensive content.
The boycott started when a number of companies reported seeing their ads placed on videos that show racist, sexist, an offensive content, which may tarnish their reputation. Companies like Johnsons & Johnsons, PepsiCo, AT&T, Volkswagen, McDonald's have officially suspended their advertisements on YouTube. As reported by The Guardian, Starbucks and even Walmart have also joined in with the boycott bandwagon shortly after the issue was put into public attention.
The issue first spilled over the media when The Times led an investigation which revealed that advertisement ads are automatically placed on YouTube videos that show extremist ideologies. Google was summoned to court in the United Kingdom to give light on this issue. Google uses highly sophisticated automation to handle the task of placing ads on YouTube videos. Because of the massive influx of videos on the said site, the task can't be done manually.
However, because of this issue, Philipp Schindler, Chief Business Office in Google publicly apologizes, through a blogpost, for the fiasco and said that they will put in place changes that will give advertisers where they can place their ads. Schindler also added that Google will also hired more people to do this task and they hope that it will resolve this problem as quickly as possible.
Though many Youtube content creators are weary of the revamp Google will make as it might be the start of demonetization of many videos because of a blanket categorization of content, which Youtube may arbitrarily label as offensive. Youtube's revenue last year totaled $10.2 billion, and at the moment the issue broke, it has fallen 7.5%. If the issue Is not resolved fast, Youtube might be on the verge of dismantling.
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