Google's advertising crisis goes global

Posted March 25, 2017

Speaking at the Advertising Week Europe conference in London, Matt Brittin, Google's president of business and operations in Europe, Middle East and Africa, said: "I would like to apologise to our partners and advertisers who might have been affected by their ads appearing on controversial content".

The video was also paired with brands in Asia - Castrol lubricants in India and Cow & Gate infant formula in Hong Kong. "We will continue to take every measure to ensure our brand advertising is consistent with our brand values".

Contacted Friday, Google stood by its earlier promise, signaling the company's confidence that it will be able to placate advertisers.

Schindler also added that the company would be "hiring significant numbers of people and developing new tools powered by our latest advancements in AI and machine learning to increase our capacity to review questionable content for advertising". It shows up these new instruments and endeavors will make it simpler for publicists to pick the sorts of substance they need their promotions to show up on, however it's indistinct on the off chance that they'll really police YouTube content more viably than some time recently.

Asked whether Google can ensure that ads won't be placed next to "hate" content, Schmidt said: "We can't guarantee it but we can get pretty close".

The process that Google and other online advertisers use to place a company's ad on a particular page is largely automated and takes milliseconds. Second, we estimate these businesses in aggregate make up 21% of GOOGL gross revenues (with YouTube 12%) and 10% of net revenue. Pacific Crest thinks this is an industry-wide problem, not just a Google problem, that comes with the scale and complexity of digital advertising. Digital advertising grew by 17 percent globally to $178 billion in 2016, according to marketing consultant Magna Global, which projects that digital-based ad sales will overtake TV to become the No. 1 media category this year.

On its part, Google has acknowledged the problem and its ramifications.

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As Anandan said: "What happened in the USA made us realise we need to do more".

Google vowed to institute a number of changes, including tightening its ad policies and giving advertisers the ability to "fine-tune where they want their ads to appear".

The technology is broadly used by internet firms, which heavily rely on software and artificial intelligence to figure out what ads will interest people at any given moment.

CFRA Research analyst Scott Kessler reiterated his strong buy rating on Alphabet, noting that Google has made a public commitment to give advertisers more control over where their ads appear.

The company's role in funding extreme content has come under scrutiny, in part prompted by the victory of Donald Trump in 2016's United States election.

Google declined to comment on individual customers but said it has begun a review of its advertising policies.