Google is bearing losses because of YouTube
Google bears the extraordinary losses. The fact is that a huge number of advertisers, both American and European ones refuse to advertise their goods and services through video hosting YouTube. The imperfection of the technology has become the cause of the failure. Advertising was included in the video of the questionable content, for instance which foments homophobia and hatred. What brand will want such neighborhood for its product?
Such giants as BBC, media agency Havas, cosmetic concern L’Oreal, HSBC Group, Audi and Volkswagen carmakers, Tesco retailer and many others are among the “refusers”.
Representatives of Google made an official apology to the companies that became victims of the inappropriate neighborhood and assured of the speedy technologies improvement of embedding advertising clips. However, the advertisers’ withdrawal did not stop.
The current situation negatively affected the quotes of the corporation. It is clear that the YouTube division will show losses until the situation radically changes.
The material was prepared with the participation of Inna Dobrinina,
a leading analyst of the brokerage company VOSPARI.