WASHINGTON, March 25, 2017 — In terms of raw numbers in online and streaming video access, Google (trading symbols GOOG and GOOGL) has long been king of the internet hill. The reason is simple. This ever-growing tech giant has always kept its eye on the advertising ball and has used its increasing dominance not only to swipe mass quantities of valuable ads from the tottering former media rulers of newsprint, magazines and network TV. It has also extended this dominance to its online competitors as well.
Like any mega-company, however, Google has rolled over so many competitors in the last decade that it has been making a classic area, at least in terms of its increasing advertising dominance. It’s no fun being the king of the hill if you don’t also don’t employ the resulting major advantage of your status: you get to make the rules.
Google figured this out some time ago, using its dominance to cut advertising deals mostly favorable to Google, conveniently forgetting the art of the classic deal: everybody gets to be a winner. Google’s rules operate from the principle that Google gets to win, while the results for it advertising customers are… whatever.
European governments, which tend to hate and envy any kind of perceived American dominance in anything anyway, have gotten increasingly irritated at this aspect of Google’s business. For example, the U.K. has struck out at the company recently.
Just this week, Google’s problems multiplied at home as well, as major companies like AT&T began to pull ad packages from videos posted on Google’s wildly popular subsidiary, YouTube. The reason: While Google supposedly matches randomized ads with compatible YouTube video content, its actual results are less than what the company’s advertising clients expected, with ads from prominent American companies wishing to reach large populations without regard to political leanings being randomly displayed on terrorist and extremist YouTube videos.
Hence, the increasing number of nervous governments and companies pulling the legal and advertising plug on YouTube and Google advertising programs.
Here’s more on the issue from an unlikely source: