Starbucks and Walmart join growing list of advertisers boycotting YouTub

After Verizon, AT & T and Johnson & Johnson boycott the Google, some more companies’ pulls ad from you tube. On Friday, Walmart, Starbucks and PepsiCo confirmed that they have also suspended their advertising on YouTube.

By doing so companies show that they doubt Google’s ability to prevent marketing campaigns from appearing alongside repugnant videos.

Talking about the suspension Walmart said in a Friday statement.

“The content with which we are being associated is appalling and completely against our company values,”

Besides suspending their spending on YouTube, Walmart, Pepsi and several other companies have said they will stop buying ads that Google places on more than 2m other third-party websites.

The defections are continuing even after Google apologized for tainting brands and outlined steps to ensure ads don’t appear alongside unsavory videos.

If Google can’t lure back advertisers, it could result in a loss of hundreds of millions of dollars in revenue. Most analysts, though, doubt the ad boycott will seriously hurt Google’s corporate parent, Alphabet. Alphabet shares have fallen more than 3% since Monday, closing at $839.65 on Thursday.

Although they have been growing rapidly, YouTube’s ads still only represent a relatively small financial piece of Alphabet, whose revenue totaled $73.5bn last year after subtracting commissions paid to Google’s partners. YouTube accounted for $5.6bn, or nearly 8%, of that total, based on estimates from the research firm eMarketer.

Whether the recent events are a mere blip on the radar for Google or a harbinger of bigger problems to come may depend on whether the company can quickly improve its technical tools to give advertisers more control over where their ads appear.

YouTube has begun reviewing its advertising policies and will take steps to give advertisers more control, Philipp Schindler, Google’s chief business officer, wrote in a blog post this week. Google also plans to hire more people for its review team and refine its artificial intelligence – a key step, since much of the ad-serving is handled by automation.

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