Friday, March 24, 2017

Google Moves to Safeguard Brands in order to Safeguard Clicks

The WSJ had an article this week describing how investors should be worried on the sustainability of Google's ad revenue stream. This is a bit surprising given that Google's ad revenue grew 18% last year, but then again that sets a pretty high bar for future incremental growth. Additionally, some major brands (i.e. Verizon, AT&T) recently suspended ads with Google in the wake of finding out their branded ads were being placed next to objectionable content.

I guess recent moves by AT&T and Verizon follow the old adage that "it takes a lifetime to build a strong reputation, but just a quick moment to destroy it". In order to provide re-assurance to its brand-conscious customer base, Google will have to take steps to police its network and safeguard brands. I'd be curious to see how this unfolds as it is impossible to fully police such a wide landscape as the world wide web. But if anyone can do it, I'd put my money on Google.

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