A widening YouTube ad boycott could cost Google $750 million or 7.5% of total revenue, according to analysts at Nomura Instinet. Shares of Google fell 4.5% Friday, continuing a multi-day downward trend.
The ad boycott began when major advertisers were chastised publicly for running ads alongside offensive videos including some produced by known terrorist groups.
Walmart, General Motors and Starbucks have now joined AT&T, Verizon, Johnson & Johnson, GSK and Enterprise Holdings and a growing list of U.S. companies who have said that they will stop all ad spending on Google except for search. That includes no ads on YouTube and the two million sites that are part of Google's ad network.
More than 250 organizations in the UK including the British government, Toyota and McDonald’s have stopped advertising on YouTube, according to The Times, whose investigation triggered the global boycott.
When asked if Google can ensure that ads won't be placed with offensive content, co-founder Eric Schmidt said: "We can't guarantee it but we can get pretty close."
The top companies joining the boycott via Business Insider
- Havas Group UK froze all of its spend. The agency manages major brands including Dominos Pizza, O2, Royal Mail, BBC, and Hyundai Kia.
- Lloyd's Bank
- Marks & Spencer
- The Guardian
- Transport for London
- UK Government
- Beam Suntory Inc.
- Dish Network
- FX Networks
- General Motors
- Johnson & Johnson