Google to Face Billions in Refunds Over Alleged Video Ad Standards Violation

A report has recently put Google on the spot for allegedly misleading advertisers about its TrueView skippable in-stream ads for several years.

The report claims that Google has violated its own video ad standards, potentially making advertisers eligible for refunds and forcing the tech giant to pay billions of dollars in compensation.

While Google has denied the allegations, the findings have raised concerns about the transparency of Google's online ad business.

Did Google Broke Its Own Rules?

The Adalytics report examined various TrueView ad campaigns displayed on third-party websites within the Google Video Partner (GVP) network over the past three years.

Shockingly, the report suggests that a staggering 80.7% of the reviewed TrueView ads were in breach of Google's own regulations.

Many of these ads were muted and auto-playing in out-stream video players, deviating from Google's requirements of having audible ads that viewers can skip after five seconds.

TrueView is Google's proprietary ad format that offers cost-per-view, choice-based ads on platforms like YouTube and millions of apps.

Advertisers only pay for actual views of their ads rather than impressions.

Low-Quality Ads Found

The Adalytics report reveals that significant quantities of TrueView skippable in-stream ads, purchased by Fortune 500 brands, the US federal government, and small businesses, were served on independent websites and apps that failed to meet Google's quality standards.

These ads often appeared muted, auto-playing, or in obscured video players, with little to no organic video content between them.

PhoneArena notes that one notable concern raised by the report is that multiple TrueView skippable in-stream ads were sometimes displayed simultaneously on a consumer's device.

In other cases, the "Skip" button was effectively hidden. Such practices go against Google's video ad policy, which emphasizes allowing users to skip ads and ensuring their visibility.

What This Report Means for Advertisers

The alleged violation of video ad standards could have artificially inflated the compensation rates for in-stream commercials, potentially resulting in higher costs for advertisers.

Currently, marketers spend approximately $100 for every 1,000 non-skipped views of Google's ads, while autoplay ads are sold at a significantly lower rate of around $5 per thousand views.

According to the Association of National Advertisers, at least 23% of the $88 billion spent yearly by marketers on automated digital ad buying on the open web is wasted.

Google Responds

WSJ reports that Google has refuted the claims made by Adalytics, stating that the report contains inaccurate information and does not accurately represent their efforts to ensure advertiser safety.

The tech giant emphasized its commitment to brand safety and stated that they regularly remove ads from partner sites that violate its policies. Google intends to take appropriate actions once the full report is shared.

The digital advertising market, known for its opacity and challenges in tracking money flows, faces ongoing scrutiny. The Adalytics report sheds light on the discrepancies between promised standards and actual ad placements, underscoring the need for greater transparency and accountability in the industry.

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