Following the United Kingdom and United States, in Australia also saw the country’s major companies withdraw their ads on YouTube.
Looks like, the wave of YouTube ads boycott is tending to spread around the world and there are no signs of stopping.
Tourism Australia, the government agency responsible for promoting travel to Australia has decided to stop advertising on YouTube after it discovered a travel ad and Queensland event was inserted in a Islamic content video on Youtube with title: “Priceless Actions: This is how you force a Muslim mute.”
Foxtel and Caltex also pulled out ads from Google’s video sharing site after seeing their names appear next to hostile videos and videos promoting the UPF’s far right-wing extremist organization. This action, according to the companies, is to protect their image and name.
Telstra is Australia’s biggest brand that has joined the wave of YouTube boycott around the world, following global brands such as McDonalds, Pepsi, Starbucks, Vodafone, Johnson & Johnson, Wal-Mart, Audi, Jaguar, GSK or AT&T… This is a very important decision for Telstra, as the company has increased its marketing investment on YouTube over the past few years and has gained a lot of success on it.
Nomura Instinet analysts predict that big brands stop advertising on YouTube could pose a threat to Google’s long-term business strategy in the future, as well as causing the company to lose $750 million. According to the latest reporting figures, profits from the YouTube advertising business accounted for 7.5% of Google’s total revenue.
Recently, partners also asked Google to reduce the price of advertising service on YouTube and its website because of the scandal. This is putting pressure on Google, just as Google struggled to find a way back the advertising partners.
On March 21, Google announced a number of new advertising policy adjustments that would allow partners to better control where their ads are shown. But, to the present, the coldness of many big brands implies that this action of American tech giant is not enough convincing and they need to act more positively.