YouTube advertisers have been demanding refunds from Google after a study revealed that viewers were able to completely bypass commercials displayed on third-party sites, which goes against Google’s own terms of service. The study was conducted by Adalytics, a company that analyzes digital ads, and it accused Google of misleading Fortune 500 companies, small businesses, and the US government about its TrueView service, which allows users to skip ads. Advertisers reportedly lost billions of dollars due to “in-stream ads [that] were served muted and auto-playing as out-stream video or as obscured video players on [hundreds of thousands of] independent sites.”
According to Adalytics, these ads were shown on sites that either spread misinformation and conspiracy theories or didn’t exist at all, raising concerns about Google’s placement reporting tools being vulnerable to deception by invalid ad traffic. Advertisers are now seeking refunds from Google.
Adalytics also criticized Google for not following its own policies regarding ad placements on third-party sites. Google claims to carefully vet and approve “high quality Google Video Partners,” but Adalytics believes this is not being implemented properly. Google’s policies state that TrueView ads should be played before the main video content on sites and should be skippable and audible.
Media agencies have expressed their disappointment in YouTube, with Joshua Lowcock, the global chief media officer at ad agency UM Worldwide, calling it an “unacceptable breach of trust.” He urged Google to fix the issue and fully reimburse clients for any fraudulent activity or impressions that didn’t meet Google’s policies.
The cost of ad placements on third-party sites varies, with brands typically paying $100 for every 1,000 completed views of their ad. More desirable placements, such as on the landing page of a third-party site, come at a premium. Fortune 500 brands could spend over $75,000 on TrueView campaigns, according to Adalytics.
Google has denied the allegations, stating that advertisers are able to see where their ads are being placed and how much is being spent. The company also noted that advertisers have the option to opt out of its ad programs.
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