Advertisers demand billions in refunds from YouTube over skippable ads

Advertisers demand billions in refunds from YouTube over skippable ads.

Google controls nearly 70 percent of the ad market globally. Its ad revenue was to the tune of $225 billion in 2022. Of this, YouTube’s ad revenue accounts for nearly $30 billion. 

Indian advertisers expressed concern over the study but refused to comment saying that they were reviewing the Adalytics report as of now. 

“We can comment only after detailed deliberations within the company and our industry forum. We will review YouTube allocations if more details emerge in this case,” several leading advertisers told e4m. 

Head of a digital agency said, “Google and YouTube must investigate the issue. A third party audit would be better as it can help them rebuild the trust of advertisers. Meanwhile, they should refund the ad money to affected advertisers.”

New findings reported by The Wall Street Journal reveal that approximately 80% of the ads YouTube serves across the web have breached its own terms of service, making them subject to refunds.

This could cost Google billions of dollars, adding to the company’s existing troubles, such as a growing discontent with search results and two ongoing antitrust lawsuits. New findings reported by The Wall Street Journal reveal that approximately 80% of the ads YouTube serves across the web have breached its own terms of service, making them subject to refunds.

This could cost Google billions of dollars, adding to the company’s existing troubles, such as a growing discontent with search results and two ongoing antitrust lawsuits. Adalytics used web-crawler data and worked with media buyers to come out with an in-depth investigative report. 

 Adalytics reviewed ad campaigns of over 1,000 brands, and reportedly found many of the “TrueView” ads (Google’s video ad) running in the background at “corner of the screen” in an automatic loop without any audio. Websites running “muted TrueView ads” include the NYTimes, Reuters and Wired, the report noted. 

What is trueView?

TrueView is the core product for YouTube’s ad business. 

“Most advertisers spend almost half of their video ad spend on TrueView which offers them a “choice-based ad format”. In this, users can skip the ad after five seconds and the advertisers are charged only if a user watches 30 seconds or the full-length of the video ad,” explains an Indian ad executive.