Advertisers are finding their campaigns running alongside inappropriate content on Google Preferred, a platform that enables brands to run their ads on YouTube most popular video content reports Business Insider.
Brands are finding that Google Preferred has at some point in particular run video content that contained sexually explicit content and foul language among other questionable content. This could pose a marketing problem for Google Preferred which was initially pitched as a platform with desirable features of TV advertising. This mishap has many consequences. One such consequence is that it could jeopardise advertiser’s trust on the video sharing platform. For instance it could undermine the value of Google Preferred ad inventory, putting a strain on YouTube revenue. Ad prices on YouTube Preferred are often on par with those of cable TV, and cost two to three times more expensive than video ads on the open web. Video ads on the open web cost roughly $10 to reach 1,000 people.
In addition to this, it could hurt YouTube’s grand plan of shifting ad spend away from TV and further strengthen TV’S pitch to advertisers. Advertising on TV will seem more appealing to brands since they will know the kind of content that their campaigns will be appearing next to. BI Intelligence estimates US TV ad spend will grow from $73 billion in 2016 to $81 billion in 2021, while digital ad spend is estimated to grow from $70 billion to $107 billion in that time period.
Another possibility outcome from this mishap is that it could boost business for other YouTube competitors. Some brands may opt to shift their ad dollars to ad-supported TV streams and skinny bundles as these platforms have fewer brand-safety issues. Moreover advertisers could spend more ad money on social media platforms such as Facebook or Snapchat.