Google’s money-making foundation is strong enough to endure a current boycott by advertisers, but the movement could rattle the practice of software “programmed” ad placement, analysts said on Thursday.
The internet giant’s core business of serving up advertising along with online search results appeared to be safe from the boycott, motivated by companies seeking assurances that their marketing messages won’t be displayed along with hateful or outright terrorist content, particularly videos on Google-operated YouTube.
The “backlash” could broaden into a rebellion against the market practice of software programming ad placements, slowing not only Google’s revenue but also that of other internet firms, according to Jackdaw chief analyst Jan Dawson.
“I would think Google (and parent company Alphabet) would be extremely lucky to emerge from all this with minimal financial impact,” he said in a blog post.
“I think it’s far more likely it sees both a short-term dent in its revenues and profits from the spreading boycotts and possibly a longer-term impact as brands reconsider their commitments to programmatic advertising in general. ”
California-based Google, which has seen a slew of companies withdraw ads fearing placement alongside extremist content, said this week it is introducing new tools to give firms greater control.
“We know advertisers don’t want their ads next to content that doesn’t align with their values,” Google’s chief business officer Philipp Schindler said in a blog post.
“We’re taking a tougher stance on hateful, offensive and derogatory content. ”
Hateful videos
The boycott began last week after the Times newspaper of London found BBC programs were promoted alongside videos posted by American white supremacist and former Ku Klux Klan member David Duke as well as Wagdi Ghoneim, an Islamist preacher banned from Britain for inciting hatred.
