YouTube And It’s Timely Reminder To Brands

YouTube, the most popular video-sharing website in the world and the go to place for procrastination has recently experienced a crisis with advertisers.

Some of the world’s largest brands have been funding Islamic extremists, white supremacists and pornographers by advertising on YouTube!! And the thing is, they didn’t even know about it until now.

This issue was raised in February by The Times and has been ongoing since. Original posters on YouTube are believed to earn $7.60 for every 1,000 views when an advert is placed alongside their videos. Some extremists videos have generated more than 1 million views, so you can imagine how much some of them would have earned.

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Major brands such as Mercedes-Benz, Marie Claire, Jaguar Land Rover and Disney are some of the companies that have boycotted YouTube by removing their ads on their website.

Brand image and reputation has been questioned by the public in regards to some of the brands caught up in this scandal. YouTube now poses an environmental risk to their brand image.

According to Adnews, the YouTube crisis has resulted in a decline in digital media ad spending in nearly eight years. There was a 10.3% drop in video platform ads bookings as well as media agency bookings across digital, a drop by 1.7% compared to February 2016.

The boycott is estimated to cost YouTube a loss of $US750 million in revenue!

YouTube has since tightened their policies where video channels must have more than 10,000 views before ads would be placed on their videos. However, many brands will only return once they have created a safer brand reputation environment.

So what’s next for brands? YouTube has always been a relatively cheap cost for digital media advertisement with the huge number of potential reach and brand awareness. Should they look to other alternatives or should they look to market through channels where they have more control of their content?




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