Recently, several companies have pulled the plug on YouTube ads, fearing that they may show up alongside inappropriate content. Cisco Systems, Inc. is the latest company to do so.
On Wednesday, Cisco’s Chief Marketing Officer, Karen Walker, wrote in a blog post about brand safety saying, “While Google and Facebook have made some strides to combat the issue, at this time we have pulled all online advertising from YouTube until the platform has met our standards. But we continue to use it as a platform to share our video content.”
The post has since been edited, and the mention of YouTube has been replaced with a statement that the company is “working closely with all of our media partners to ensure that Cisco’s online advertising meets our stringent standards.”
Greg Portell, the lead partner in retail practice at AT Kearney, said, “Every large advertiser like Cisco is having similar conversations with YouTube, and it’s not surprising to see the advertiser taking action to make sure the problem gets solved.”
“YouTube is an expensive platform for marketers,” Portell said. “This is high-value digital space, so it’s fair to have advertisers expect a bit more [from YouTube]. It’s an easy way to reach a lot of people,” he added.
YouTube has been a critical driver of Alphabet’s growth, with paid ad clicks on Google’s own sites and apps rising 59% in the first quarter, ahead of the previous quarter’s 48% growth. Alphabet does not break out YouTube’s revenues and operating income separately.
Alphabet’s stock was down 0.3% to $1,102.14 on Friday afternoon following this news. Since the beginning of this year, shares have increased 4.6%.