Is The Google Boycott More About Brands Getting Free PR?
In this guest post, Stefan Michael (pictured below), a professor of marketing and service management at IMD business school in Switzerland, argues the current Google boycott by brands might be more ‘publicity stunt’ than genuine concerns about where their ads are being shown…
(This opinion piece is written in the context of the European market.)
Swiss companies, such as the soft cheese manufacturer Baer and Swiss Life, have announced that they will stop placing any advertising on Google because their ads have appeared alongside YouTube videos with inappropriate content, such as neo-Nazi speeches or extremist videos. US telecom giants AT&T and Verizon have also decided to follow suit.
In the UK, more than 250 companies are calling for a Google boycott. Overall, this has led to a 4.5% decline in Alphabet share prices. In other words, the market capitalisation of the Google/YouTube parent company has been reduced by 22 billion US dollars. Investors are now asking whether this controversy marks the beginning of the end for Google’s advertising dominance.
It’s an interesting case because it can be interpreted in a few completely different ways.
1. Baer/Swiss Life Boycott
Swiss Life und Baer have announced that they will no longer advertise on YouTube and the Google Display Network (GDN). However, despite the anger expressed by communications professionals, they will eventually return to Google. The public boycott is free PR. I’ve never seen any Baer advertising on YouTube, but now I’m aware of it. The companies have also had an opportunity to communicate their own values. A brand is unlikely to be damaged by the display of an advertisement alongside negative content. Internet users know that Baer and Swiss Life are not seeking to cosy up to neo-Nazis and extremists. I don’t believe a company will leave advertising on Google to their competitors in the long run. Also, no company is going to completely boycott Google. This would mean reducing search engine optimisation on Google, or programming a company website in such a way that Google is unable to find it.
2. A YouTube error in the 0.01 per cent range
It’s clearly a mistake when a brand is displayed alongside hate videos and Google is doing everything in its power to prevent this happening again. 99.99 per cent of the time Google advertising is matched to your interests with scary precision and it learns fast. So the above cases are clearly exceptions. You should also bear in mind that 400 hours of video are uploaded to Youtube every minute. Every minute! Sorting these videos works well, but things do go wrong occasionally. If the digital revolution has taught us anything it’s that systems and algorithms are improving continually.
3. Everyone wants viral campaigns and total control
The current controversy underlines how the way companies communicate their message has been profoundly transformed. Before the digital revolution, those in charge of communications and advertising had almost total control over their own communication channels. Social media has had a major impact on this. It creates new opportunities, such as viral campaigns. But the disadvantage of viral campaigns is that they are viral, i.e. there is no control over dissemination. No company can prevent their brand being liked or shared by anyone on Facebook. The one area where companies still retain control is their budget. And they are making use of it in the current controversy.
4. Google’s dominance creates anxiety
Another factor that has fanned the flames of this controversy is Google’s dominance as a search engine and advertising platform (Google AdWords and AdSense), plus applications such as Google Maps and even YouTube. If you examine the expenditure of companies which rely heavily on marketing, such as brokers, you’ll notice that Google advertising represents the largest item of expenditure. If the search term is particularly popular (e.g. insurance, loans) 40 US dollars or more are paid per click. Per click! In terms of competitive strategy, it makes sense for clients to use this kind of boycott to unite in order to counter Google’s dominance.
5. Exchange rate
A loss of 22 billion US dollars within a few days sounds dramatic. As a point of comparison, Credit Suisse shares are valued at around 30 billion Swiss francs on the stock market. This means the Google nose dive is equivalent to two-thirds of the value of the major Swiss Banking group. A look at Google share prices over time shows a fall from an all-time high of 852 dollars. On 29 March 2017, prices had returned to the 14 February 2017 level – around 820 dollars. Nevertheless, and despite the controversy, investors have not lost confidence in Google’s business model.
What is clear is that Google needs to respond to this issue quickly and effectively and improve its advertising placements.
Latest News
Choose A Path Less Trodden This Cannes In Cairns
Don’t be basic. Think creatively and you shall reap the benefits of Cannes in Cairns. “We want brands!” “We want the CMOs!” We heard you and we acted. The content slate at this year’s Cannes in Cairns, presented by Pinterest, is packed to the rafters with some epic brands and top marketing talent. But that’s […]
Cannes In Cairns MC Keeva Stratton Shares Her Top Session Picks
Self-professed nerd and one of four top Cannes in Cairns, presented by Pinterest MCs, Keeva Stratton has a front-row seat to some fascinating minds and fierce debates. But who should you put on your must-see, must-hear list? Here, B&T grabs five with the Quip agency founder, who will be helming the lecture in the Rainforest […]
Here Are The Agencies That Made AFR’s Best Places To Work List And What The Industry Can Learn From Them
Did your office not make the list? Make sure your boss shouts at least two schooners at office drinks come Friday.
Get Ready, B&T’s Best Of The Best Is Back With The Top Holding Company Executive Leaders – Creative!
Want to know who the Grandest of the Grand Poobahs in the industry are? Look no further than this exhaustive list.
How A Glittering Campaign Helped The Australian Museum Sell 400,000 Tickets
B&T thoroughly enjoyed the Ramses exhibition at The Australian Museum, despite thinking we were going to the Archibald.
TV Ratings (30/04/2024): A “Shoey” Straight From A Fish’s Mouth Launches The Cheap Seats Into 2024
Last night's TV saw horny farmers beat Lego nerds, who beat fame-obsessed home cooks, who beat a chap with a large fish.
Spotlight Extends Partnership With Starlight Children’s Foundation
B&T always happy to promote the excellent work of the Starlight Foundation. Less so the Starfish Fanciers Foundation.
Amazon’s Advertising Quarterly Revenue Soars To $11.8bn
There are so many Amazon couriers visiting B&T headquarters at the moment our office dog doesn't know who to maul first.
VML Wellington Welcomes Jacob McGregor As Pou Ārahi Māori
McGregor set to lead cultural competency and safety at VML Wellington in important new gig.
“They Grow Up So Fast”: Simon Fowler On Five Years Of ABEL
Abel's CEO talks lessons learned from the agency's first five years. Including staff nicking all the Nespresso capsules.
Kyle & Jackie O Urge Melbourne To Pick A Side
Who can stop Kyle & Jackie O's indelible march into Melbourne radio? Is Peter 'Moony' Moon waiting by the phone?
Future & Taika Waititi Feature In Striking New Global Belvedere Campaign
Not only does drinking vodka make you cool like these dudes, it also has great weight loss properties for the bone idle.
The Fall Of Bonza: A Case Study In How To, And Not To, React In A Crisis
Does the collapse of yet another budget airline hark back to a gentler time of 17 hours spent on a Greyhound bus?
Opinion: Agencies, Be Unique – Stop Using The Word “Unique!”
Trinity P3's Ellie Angell says agencies are overusing the word unique. You could add omnichannel & holisitic to that.
Ex Marketing & Advertising Exec Releases Melanoma Memoir
Ex-adlander Anne Gately has penned a tome to skin cancer. Which is a handy reminder to check your moles, people.
Mamamia Appoint Danni Wright As New Head Of Strategy
Danni Wright takes up Mamamia's strategy reins with a feng shui expert called over positioning of office chaise lounge.
From The Bureau: Championing Competency & Cross-Industry Collaboration
The IAB's Jonas Jaanimagi calls for more specialisation in adtech. Meaning you'll understand it less than you already do.
Rumble Nabs Renee Park From Cutting Edge
Rumble has recruited Renee Park as one of its new sound designers. And it's only right to make some noise about it.
iD Collective Teams Up With City Of Parramatta To Amp Up NRL Fan Experience
Adland's often lampooned for never going further west than Surry Hills. So this Parramatta news is welcome indeed.
Slew Of New Hires At The Company We Keep
The Company We Keep announces new hires. Here's hoping it doesn't impact the RBA's interest rate decision.
UnDigital Announces Brand Refresh Helping Clients Achieve More Than 600% Sales Increase
Warning - this headline comes with some obscene bragging. Much like the B&T editor's 5/8 in the weekend footy tipping.
Microsoft Advertising: “We Make The Complicated Simple”
Microsoft ads wants to make the complicated simple. The total opposite to Korean restaurant menus & the recent Yes vote.
TV Ratings 29/4/24: Farmer Wants A Wife And Lego Masters Lock Horns In Overnight’s Battle
Who won the battle of the big guns - Lego or Farmer Wants A Wife? One thing's for sure, it wasn't Great Train Journeys.
Nielsen Data Reveals Brands Spending Big To Attract Aussie Tourists
Nielsen Ad Intel data has revealed that the travel and tourism industry spent more than $153 million on advertising in Australia in Q1, 2024 – an increase of 8 per cent from the previous quarter, with TripADeal the biggest spender, followed by Virgin Australia, then the Flight Centre-owned Ignite Travel. As many Australians return from […]
IAS Awarded New Responsible AI Certification From Trustarc
Integral Ad Science tossing up over the mahogany or teak frame after being awarded TRUSTe Responsible AI Certification.
AWARD Calls For Hall Of Fame Nominations
B&T's noms for AWARD Hall of Famer includes Louis The Fly, Chums' talking Scottie dog & Mumbrella's coke dealer.
Havas Red Wins PagerDuty PR Account
Havas Red wins PagerDuty's PR. And judging by B&T having to Google PagerDuty, it could probably do with some help.
ACA Poised To Release Results Of 2023 Create Space Census
The Advertising Council unveils date for its census results. Hey, why not coincide it with an office lamington drive?
Why Fear Is Essential To Fernando Machado’s Creativity
If there's anyone B&T loves to chat to, it's fabled marketer Fernando Machado. Although the 5am time difference sucks.
Superdry Drafts AFL’s Patrick Lipinski For New Campaign
B&T fast regretting that poncho we just bought, as it appears the puffer jacket returns as winter's hottest trend.
Elon Musk vs eSafety: Legal Experts Warn That ‘Rogue Operators’ Like X Are Unlikely To Win Federal Court Battle
If this legal stoush boils down to who can afford the better lawyers, B&T's backing Mr Musk every single time.
Amy Poehler Presents First Look At Inside Out 2 At Vivid Sydney 2024
Vivid isn't about freezing your arse off while looking at lights on a wall, as you'll learn with this Amy Poehler news.
Mutinex Launches DataOS Improving Data Warehousing & Quality For MMM Marketers
Work in marketing? Does your data warehousing resemble a teenager's bedroom? Here's a Marie Kondo-approved read.
IMAA Celebrates Three Years Of Group Trade Credit Insurance Deal
Are you a struggling indie? Thinking of firebombing the building for the insurance money? IMAA has you covered here.
Adam Sandler Seemingly ‘Slams’ Ukraine In Pro-Kremlin Campaign
Host of A-list celebs caught slamming Ukraine's president. Thankfully it does have the Milli Vanillis about it.
New Marketing & Comms Agency For Defence & Aerospace Industry Takes Flight
As painful as this is to say, judging by current world events, the bomb & tank industries must be in rude health.