JPMorgan Chase & Co. and Ford Motor Co. suspended their YouTube ads on Thursday. Then Friday, PepsiCo, Walmart, Dish, Starbucks, General Motors and FX Networks stopped spending on YouTube, according to the Wall Street Journal.
Though a grounded approach is understandable, Google still needs to be proactive in weeding out bad content lest it continue to lose the trust and business of major brands.
Google has said it has begun a review of its advertising policies and is committed to putting in place changes that give brands more control over where their ads appear. The news comes days after a surge of United Kingdom organizations pulled their promotions from YouTube and Google's show advertisement arrange because of a report from The Times that referred to cases of United Kingdom government publicizing running over radical substance. It will offer procedures so advertisers can better choose where their ads are seen, and where they are not.
In the old days, if a brand wanted to reach a certain demographic, media buyers would turn to a TV channel that they knew had a high number of viewers in that group, said Mikkel If Hansen, partner and product owner at media analytics platform Blackwood Seven. For a deeper look at how this is now playing out, this Wall Street Journal article is very helpful.
"This is an industry-wide problem, not just a Google problem, that comes with the scale and complexity of digital advertising", Hargreaves explained.
He also promised to make changes to its ad policies, as well as how it controls and enforces appropriate advertising on its platforms.
Five of GroupM's clients announced they had suspended ads on YouTube in the United Kingdom last week. While search advertising brings in the most ad revenue for Google, companies often spread out their advertising dollars to other Google ad platforms.
The marketers cited concerns over the appearance of their ads alongside offensive videos as the reason behind the move.
And for Verizon, there's another incentive to play hardball with Google.
It's important to remember that issues with proper ad placement on YouTube reflect problems with digital advertising generally. It is understood 250 companies have temporarily pulled ads. "For this, we deeply apologize", said Google Chief Business Officer Philipp Schindler said in a Tuesday post.
Google is already facing pressures on search ads following the shift to smartphones about searches.
"Overall, we think that the problems which have come to light will have global repercussions as United Kingdom marketers potentially adapt their United Kingdom policies to other markets and as marketers around the world become more aware of the problem", Weiser wrote in a note to investors.
Havas, the world's sixth-largest advertising and marketing company, pulled its British clients' ads from Google's display ad network and YouTube. And search is where the money is for Google. Google doesn't disclose how much of that came from YouTube ads, but the research firm eMarketer estimated that the video site accounted for $5.6 billion that amount.
In pre-market trading, Alphabet shares shed 0.18 percent.
This is a big black eye for Google that seems to not to want to go away for the past couple weeks.