Google purchased the rights over YouTube platform for a total price of $1.65 million back in 2006. This was just one year after the official launch of the product. The website is attracting young public thanks to its wide variety of videos. The clips can be the property of users but also of companies as well. YouTube earns most of its revenue from advertising through Google AdSense program. However, this generous source of finances could be in danger because of a recent corporative boycott. Companies don’t want their brand to be linked to extremist content.
America Joins Britain in YouTube Boycott
AT&T and Verizon are the latest companies that joined a major boycott against YouTube advertising options. Other corporations in alignment with this movement are Marks & Spencer, Lloyds, Royal Bank of Scotland, and HSBC. This is the first time the British initiative against parent company Alphabet left boundaries and convinced American brands to join in.
On Wednesday, both telecommunication companies stated that they had already interrupted their collaboration with YouTube platform. The reason behind this has something to do with risks of public denigration. The companies that participate in this boycott expect a reassurance from YouTube. They want the video-sharing website to find a way to avoid any possible connection between the extremist content published there and the ads of their brands.
Google Advertising Tools Can’t Cope with Requests to Avoid Extremist Content
While companies can choose which target public they want their ads to appear to, they don’t have 100% control over their campaigns. The main issue is that their brand can appear right in the middle of videos that are about anti-Semitic or homophobic subjects.
The scandal erupted last week through a The Times article. The comprehensive report showed how frequently brands receive unfortunate placements on YouTube platform. It seems that the advertising tools at Google are the ones in charge with programming the ads according to the given specifications. However, they fail to avoid displaying them during controversial videos created by hate groups or even terrorists.
However, the two American telecommunication corporations might be up to something more than just avoiding a public image scandal. Both of them have an interest in making Google lose its marketplace dominance. This is because AT&T, as well as Verizon, intends to invest heavily in their own advertising platforms. Verizon is in talks with Yahoo, while AT&T is interested in acquiring Time Warner.
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