How advertisers going out of Google will reshape YouTube and Internet?

“Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.”
― United NationsUniversal Declaration of Human Rights

Advertisers going out of Google and content creators are freaking out. As I see it, advertisers just took a stand and made a statement that they are not Okay to people make money with the stupid crap they put up online.  YouTube is flooded with clickbait, copies of original videos, negative ideas that usually tell you that everything is going to crash, economy, and world everything. In the name of freedom of speech, people say whatever they feel like and of course finally Advertisers started showing that they are not ok to pay for just any crap.

YouTube is an ecosystem that consists of advertisers, content creators, and viewers. If anyone pulls out, YouTube would be in trouble. YouTube makes m0ney by letting content creators create and upload content online and then the viewer watch whatever they please, and of course the advertisers target the eyeball, they purchase eyeballs or views by paying YouTube. And that is why every minute YouTube let’s creators upload 400hrs worth of content.

Now, since we have freedom of speech and what not, YouTube got flooded with garbage. And it is not just YouTube but all websites where Google shows ads and let the website monetize their content.

Why are the advertisers going out of Google –

Because they did not want to associate themselves with the garbage it is out there. May be they are not happy with the ROI. They spend money on ads, but how many sales do they make ? Or how many of those impressions actually get converted in to sale? May be, they are reducing their advertising budget, I do not know, but it is possible.

Effects on Viewers –

If I were just someone who watches videos on YouTube, and if I see ads are going down in number. And that will make me happy. Who loves to watch the ads on ads or get the ad breaks? Same goes for the readers or visitors on web sites. Less the number of ads, better it gets. So I think the person browsing YouTube and reading websites will be happy that Google is losing advertisers.

Effects on the content creator –

So, broadly there are 3 types of content creator

  1. Original content creator
  2. Brands and sellers
  3. Copycat and click baiters

Original content creators will take the biggest hit. As most of them work full time on YouTube, if they lose revenue from YouTube videos, they will not be happy about it.

Brands or people who are trying to sell stuff, I do not think YouTube ad revenue is their main source of income. Their revenue will take a hit but as long as they do not lose viewers, I do not see a reason why they would be that much impacted.

Now, lastly the scammers – hopefully YouTube will finally get rid of these folks. These copy-stars and spammers were drawn to YouTube just because of the revenue. And only thing they made was copied videos. If money goes out of equation, they will not have reason to spread the crap they spread over internet.

Impact on YouTube –

They are losing advertisers, so of course they are losing money, in fact they are bleeding money. But they have huge operating cost to support all uploaders and the maintenance. Now, they have two challenges, first they need to get rid of the crap advertisers do not like, and content creators are not going to like it, some might say their freedom of speech is being violated. Apparently the bots those crawl through the videos and flag them are not enough, so they have to make the bots better and get a bigger team of reviewer.  So, investing in better technology and manual team will cost them more money and until they can prove that they can restrict the type of content that advertisers do not like, advertisers may not come back.

But then wait, we are talking about Google, nobody leaves Google, because Google is innovative. They will change their business model to bring back money into their system. So, they can pre-approve some content creator who will not violet the content creation guide. And advertisers will be okay with the content and secondly, the TV on YouTube will be a perfect place to display ads. So, what I imply, small content creators will lose revenue.

It will be interesting to see what really happens. I am hoping to see few leave the space, because the money won’t be worth it. May be it will be better for internet users to see less garbage. And may be advertisers will lose less money too.


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