Analysts Predict the YouTube Advertiser Boycott Will Cost Google $750 Million
Google-owned YouTube, which relies on big brands’ advertising, could take a 7.5 percent hit to its estimated 2017 revenues of $10.2 billion.
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Google could lose up to $750 million from the advertiser boycott related to like videos, according to a note from analysts at Nomura Instinet.
According to the note, Google-owned YouTube, which relies on big brands’ advertising, could take a 7.5 percent hit to its estimated 2017 revenues of $10.2 billion.
Five of the top 20 U.S. advertisers have frozen their advertising with Google, as have . Those five companies make up 7.5 percent of U.S. ad spend, according to the note.
Traditional TV companies will likely look to capitalize on the boycott during the upfronts — when 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 that rely on user-generated content — such as Facebook, Twitter and Snapchat — could also be scrutinized more closely as a result of the boycott, the note suggested.
Notes from Wall Street analysts at RBC Capital Markets and Morgan Stanley last week, however, of the advertiser boycott and maintained positive ratings of the company. Morgan Stanley, for example, said the top 100 advertisers on Google likely represented less than 20 percent of the company’s total revenues.
Analysts at Nomura say YouTube could introduce solutions to increase brand safety but that the development of those could affect 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 has update its ad policies, employ more people to review content, and introduce more controls for advertisers.
More than 250 brands have from Google’s display ads network and YouTube, according to The Times. Search advertising, which , wouldn’t be affected by the ad boycott.
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Google could lose up to $750 million from the advertiser boycott related to like videos, according to a note from analysts at Nomura Instinet.
According to the note, Google-owned YouTube, which relies on big brands’ advertising, could take a 7.5 percent hit to its estimated 2017 revenues of $10.2 billion.
Five of the top 20 U.S. advertisers have frozen their advertising with Google, as have . Those five companies make up 7.5 percent of U.S. ad spend, according to the note.
