AT&T Pulling Ads From Google Over 'Hate' Videos -- 2nd Update
March 22 2017 - 6:25PM
Dow Jones News
By Jack Nicas
AT&T Inc. and Verizon Communications Inc. on Wednesday
pulled much of their advertising from Google over concerns that
their ads may have run alongside controversial videos, extending
the financial impact of a controversy that was once just a
public-relations issue for Google.
AT&T and Verizon are more than just advertisers on Google.
Both wireless carriers also are building online video and ad
services to compete with Google.
AT&T said it is suspending all of its advertising spending
on Google except for search, encompassing all ads on Google's
YouTube site and the more than 2 million third-party websites in
Google's advertising network.
"We are deeply concerned that our ads may have appeared
alongside YouTube content promoting terrorism and hate," AT&T
said, adding that its move would last "until Google can ensure this
won't happen again."
Verizon said it was pulling all spending from so-called
programmatic advertising, which uses software to automatically
place ads across the web. Such advertising includes ads on YouTube
and Google's network of third-party sites.
"We are working with all of our digital advertising partners to
understand the weak links so we can prevent this from happening in
the future," Verizon said.
The companies' moves came a day after Google unveiled changes to
its ad policies and enforcement designed to keep ads away from
controversial sites and videos. A Google spokeswoman declined to
comment on AT&T and Verizon, but said the company is working on
measures "to further safeguard our advertisers' brands."
Both AT&T and Verizon are positioning themselves as budding
competitors to Google for advertising dollars. Verizon owns AOL and
is in the process of buying Yahoo, both internet firms directly
compete with Google for digital-ad spending. AT&T is pitching
its proposed merger with Time Warner Inc. as a defense against
Google's growing power in the industry.
AT&T and Verizon are the largest companies yet to reduce
spending on Google following reports that it placed brands' ads on
YouTube videos supporting terrorism.
Other companies, including HSBC Holdings PLC, Royal Bank of
Scotland Group PLC, L'Oréal SA and Volkswagen AG's Audi have all
reduced spending on Google advertising over the past several days
in response to the controversy.
Google has apologized to marketers for any cases in which their
ads appeared next to inappropriate content.
Write to Jack Nicas at jack.nicas@wsj.com
(END) Dow Jones Newswires
March 22, 2017 18:10 ET (22:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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