Google joins Facebook and bans cryptocurrency ads
Google’s parent company Alphabet has joined online competitor Facebook in banning adverts relating to cryptocurrencies on all of its platforms. As a result, cryptocurrency shares have been tumbling across the board. But Google’s ad revenue will likely see little-to-no impact from the loss of these controversial clients.
The official ban relates to “cryptocurrencies and related content.” Hence, adverts for initial coin offerings, cryptocurrency exchanges, and any other number of offers will no longer be popping up on the world’s most popular search engine.
Alphabet’s share price has appreciated by 8% over the last month
SOURCE: Yahoo Finance
Speaking to CNBC on Wednesday, Google’s director of sustainable ads, Scott Spencer, said: “We don't have a crystal ball to know where the future is going to go with cryptocurrencies, but we've seen enough consumer harm or potential for consumer harm that it's an area that we want to approach with extreme caution.” This follows on from a stance taken by Facebook in January to ban ads related to cryptocurrencies for the “protection” of its users.
According to GBH Insights head of technology research, Daniel Ives, cryptocurrency is small fry for Google, and YouTube is what will drive its ad revenue over the coming year. He told reporters:
“We see this having a minimal impact to Google’s ad revenue as this was an incremental ad opportunity that was limited in size and scope from the Street’s perspective. As Google further monetizes this golden advertising gem over the coming 12 to 18 months, we believe this will be a major growth catalyst that is underappreciated by investors, in our opinion, and a key driver of ad growth for 2018 and beyond.”
According to its most recent quarterly earnings, ad revenue ($27.2 billion) makes up about 85.5% of Alphabet’s total revenue.
Dominion holds Alphabet, the parent company of Google, in its Global Trends Ecommerce Fund.
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