Advertising buyers say Google, the largest digital advertising platform in the United States, faces increasing competition from sites where people buy products and places they believe are safe from potentially offensive content.
Google's parent company, Alphabit, fell 7.5 percent on Tuesday, a day after announcing its slowest quarterly revenue growth in three years.
About 85 per cent of Google's revenue comes from Google's advertising business, said Matt Baxter, global CEO of Initiative, an IPG Mediabrands-owned advertising agency with customers including Amazon: "One word: Amazon."
Baxter explained that customers began to transfer the money paid for advertising from platforms where people search for products to places like Amazon, where they buy, in order to be closer.
But Monica Peart, director of forecasting at eMarketer, presented a different view. "Amazon has a larger share of advertising budgets for advertisers, and some of its growth comes at the expense of what should have gone to Google, but that has little impact on Growth of Google's advertising revenue at the moment. "
Peart said Google's huge volume, which had revenues of $ 36.3 billion in the first quarter of this year, meant growth should slow as global digital advertising budgets and international economies also slowed.
Amazon's advertising business - built into the "advertising and other sales" sector - posted $ 2.7 billion in the first quarter, less than a tenth of Google's advertising sales.
The YouTube platform, Google's hosting and broadcast service, has struggled to stop the spread of malicious content or adult content on the site, prompting some top advertisers, including AT & T, to remove ads for fear of appearing alongside offensive content.
"Some customers have taken a decision to go back a bit," said Jon Stimmel, chief investment officer at Universal McCann, an advertising agency, referring to YouTube. "These customers have moved to more secure platforms for the brand, Hulu, and Roku.
Since search engine marketing or website promotion is no less expensive on Google, the YouTube platform is directly responsible for the low revenue, according to Barry Lowenthal, chief executive of The Media Kitchen, Adding that his customers still spend more money on Google compared to other advertising platforms.
0 Comments