Google acquired YouTube for $1.65 billion in 2006, and it was believed to be a pricey gamble, as it was believed that this was an online service that was prominent for pirated videos and the user-generated contents may appeal to advertisers.
YouTube is now Google’s advertising business strength and also the most valuable video platform on the internet. In the recent years, advertisers are unable to ignore massive audience, flocked to YouTube to reach younger people who moved away from television.
However, this technology recently has come under intense security with AT&T, Johnson & Johnson and other marketers deep pocketed saying they will removed their ads from this service as the automated system are placed online have started appearing on YouTube next to offensive materials such as hate speech.
Lyf, the ride-sharing service is the recent example, to remove their ads as it appeared next to racist skinhead group videos and a spokesman of Lyft, Scott Coriell, said “This is beyond offensive”.
The advertisers pull back strikes the core of YouTube’s appeal. In the television, during particular programs the brands run their advertising, while identically, YouTube mirrors it by specializing in niche content that attracts engaged viewers. This provides YouTube enormous audience watching per day one billion hours of videos, making it perfect for new ad technology that slices and dices audience minutely so that companies target specific viewers.
But over 400 hours of content get uploaded to YouTube each minute, and Google prevents ads from running next to inappropriate material “in most cases,” but it is unable to police the content amount in real time. And it has increased the concerns in advertisers.