Last week news surfaced that ads from major companies are appearing on YouTube pages or videos with hate speech or offensive content. Since then a number of mainstream brands such as ATT, Verizon, McDonalds UK and RBS have stopped ads on sites managed by Google. It is not clear for how long the boycott will continue and how it will impact Google's revenues. It is, however, clear that placing ads using algorithms poses risk of ads being matched with controversial content.
In response YouTube announced that it will put policies in place to demonetize content that is hateful. Essentially YouTube will remove ads from content that attacks people based on their race, religion or similar categories. They are also planning to implement controls that will make it easier for advertisers to exclude high-risk content. Lastly, they are increasing the manual review time.
References:
http://www.bizjournals.com/sanjose/news/2017/03/23/youtube-advertising-boycott-att-verizon-jnj.html
http://www.adweek.com/digital/youtube-ad-placement-restricted-mode/
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