Analyst predicts the YouTube advertiser boycott will cost Google $750 million

Analyst predicts the YouTube advertiser boycott will cost Google $750 million

By Julien Rath March 27, 2017

Google could lose up to $750 million from the advertiser boycott related to ads appearing next to extremist content, according to a note from analysts at Nomura Instinet.

According to the note, YouTube, which relies extensively on big brands, would take a 7.5% hit to its revenues, which are estimated to be $10.2 billion for 2017. Five of the top 20 US advertisers, which make up 7.5% of the US ad spend, have frozen their advertising with Google — alongside dozens more around the world.

Traditional TV companies will likely look to capitalize on the boycott during the upfronts – where networks try to sell the bulk of their advertising – which run from March to May and emphasize the view that advertising on TV guarantees brand safety with large scale audiences, according to the note.

Other platforms which rely on user generated content — like Facebook, Twitter, and Snapchat — could also be scrutinized more closely as a result of the boycott, the note suggested.

Notes from Wall Street analysts RBC Capital Markets and Morgan Stanley last week, however, downplayed the impact of the advertiser boycott and maintained their positive ratings of the company. Morgan Stanley said, for example, the top 100 advertisers on Google likely represent less than 20% of the company's total revenues.

Analysts at Nomura believe YouTube was capable of introducing solutions to increase brand safety but said the development of these could also impact the company financially.

"Ad buyers are likely to demand greater direct control over ad placement, which could take time and resources to implement," the note said.

Google said it would be employing more people to review content, updating its policies to help review questionable content for advertising, and introduce more controls for marketers.

More than 250 brands have reportedly pulled their advertising from Google's display ads network and YouTube. Search advertising, which makes up the bulk of Google's revenue, is not impacted for the ad boycott.


http://www.businessinsider.com/analyst-predicts-the-youtube-ad-boycott-will-cost-google-750-million-2017-3

Comments

Post a Comment

Popular posts from this blog

Report: World’s 1st remote brain surgery via 5G network performed in China

World’s 1st remote brain surgery via 5G network performed in China Published time: 17 Mar, 2019 13:12 ·           A Chinese surgeon has performed the world’s first remote brain surgery using 5G technology, with the patient 3,000km away from the operating doctor. Dr. Ling Zhipei remotely implanted a neurostimulator into his patient’s brain on Saturday, Chinese state-run media  reports . The surgeon manipulated the instruments in the Beijing-based PLAGH hospital from a clinic subsidiary on the southern Hainan island, located 3,000km away. The surgery is said to have lasted three hours and ended successfully. The patient, suffering from Parkinson’s disease, is said to be feeling well after the pioneering operation. The doctor used a computer connected to the next-generation 5G network developed by Chinese tech giant Huawei. The new device enabled a near real-time connection, according to Dr. Ling.  “You barely feel that the patient is 3,000 kilometers away,”  he said.
Read more

BMW traps alleged thief by remotely locking him in car

BMW traps alleged thief by remotely locking him in car Stealer's Wheel? Seattle police department quotes "Watchmen" movie in a recap of the recent arrest. Tech Culture by Gael Fashingbauer Cooper December 4, 2016 5:00 PM PST It's maybe the most satisfying arrest we can imagine. Seattle police caught an alleged car thief by enlisting the help of car maker BMW to both track and then remotely lock the luckless criminal in the very car he was trying to steal. Jonah Spangenthal-Lee, deputy director of communications for the Seattle Police Department, posted a witty summary of the event on the SPD's blog on Wednesday. Turns out if you're inside a stolen car, it's perhaps not the best time to take a nap. "A car thief awoke from a sound slumber Sunday morning (Nov. 27) to find he had been remotely locked inside a stolen BMW, just as Seattle police officers were bearing down on him," Spangenthal-Lee wrote. The suspect found a ke
Read more

Visualizing The Power Of The World's Supercomputers

Visualizing The Power Of The World's Supercomputers   BY TYLER DURDEN FRIDAY, JAN 21, 2022 - 04:15 AM   A supercomputer is a machine that is built to handle billions, if not trillions of calculations at once. Each supercomputer is actually made up of many individual computers (known as nodes) that work together in parallel. A common metric for measuring the performance of these machines is  flops , or  floating point operations per second . In this visualization,  Visual Capitalist's Marcus Lu uses  November 2021 data from  TOP500  to visualize the computing power of the world’s top five supercomputers. For added context, a number of modern consumer devices were included in the comparison. Ranking by Teraflops Because supercomputers can achieve over one quadrillion flops, and consumer devices are much less powerful, we’ve used  teraflops  as our comparison metric. 1 teraflop = 1,000,000,000,000 (1 trillion) flops. Supercomputer Fugaku  was completed in March 202
Read more