3-minute vitamin ad… no skip button. Google is facing intense scrutiny after an ad-analytics biz said the Silicon Valley giant repeatedly broke its own policies for video-ad placements. FYI: Google’s YouTube alone takes in 8% of the $47B spent yearly on US digital ads, and name-brand advertisers shell out big bucks for prime YouTube and webpage placement. But this week research firm Adalytics dropped a bombshell report alleging that Google has violated the fine print of its video-ad deals 80% of the time — which potentially costs advertisers billions.
ICYMI: The report said the ads ran in muted, auto-playing formats or appeared on undesirable webpages (like: clickbait).
VIPs: Adalytics said ads from Macy’s, Disney+, and American Express — plus gov’t agencies like Medicare and the Social Security Administration — were possibly affected.
Google disputed the findings in the report, saying it “makes many claims that are inaccurate.” But that hasn’t stopped some businesses from asking for their $$ back.
Ad dilemma… While ad-placing platforms like Meta and Google have rules against deceptive ad practices, it’s an ongoing battle. Last year Google said it blocked (or removed) 142M ads that broke its misrepresentation policy (picture: false advertising, brand impersonation). And last year Meta got fined $414M after EU regulators said it forced users to accept personalized ads.
One spark can start a fire… and Google has its eyes on several. As recently as 2021, advertising made up 80% of its revenue. Now sales have dropped for the past two reported quarters. Moreover, EU regulators are calling to break up Google’s ad biz entirely. The build-up of problems could threaten Google’s ad reign just as the industry slows. Growth in digital-ad spend is forecast to dip below 10% this year for the first time in 14 years.