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Vietnamese businesses stop advertising on Youtube

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Saying ‘no’ to Youtube means leaving an advertisement channel.

Many large corporations have canceled plans to run ads on Youtube after they received a dispatch from the Ministry of Information and Communication (MIC) which requested them to explain why their ads are associated with clips with ‘toxic anti-government’ content.

MIC, citing regulations on cross-border public information management, requested Google, the owner of Youtube, to remove clips with toxic and fake content.

The ministry has confirmed that Google has removed 16 out of the 17 clips mentioned.

Meanwhile, the enterprises which advertised on Youtube, said they signed contracts on running ads with intermediary media companies, not directly with Google.

An expert said that Youtube has a system, processing and censoring unit of its own to block the videos that Youtube thinks are unsuitable. 

Regarding the video clips with fake content, the expert believed this might occur because of Youtube’s some weak spots. It might also happen that people tried to play tricks to increase the numbers of view. 

However, whatever the reason is, businesses would have to be very cautious with the ads on the channels like Youtube. If so, this would be a loss for businesses, because advertising on digital channels like Youtube is a growing tendency.

A report by PricewaterhouseCoopers (PwC) and Interactive Advertising Bureau (IAB) shows the robust development of digital advertisement with the digital video revenue increasing by 178 percent in the first half of 2016 to $1.6 billion.

In terms of digital videos, Youtube has great advantages. Omid Kordestani from Google said the number of people watching clips on Youtube for more than 40 minutes in the US has increased by 50 percent year after year, while the figure is 120 percent in Vietnam.

Vietnam is the fastest growing smartphone market in South East Asia, according to GfK. More than 50 million people use internet in the country and 90 percent of them use social media such as Facebook and Google. As such, if businesses have to say ‘no’ to Youtube, they would have to give up a good ad channel.

An analyst commented that Google’s prompt action of removing the clips shows that it attaches importance to the Vietnamese market. Vietnam is among the 10 countries with the highest numbers of Youtube views.

A report released by VECOM (Vietnam E-commerce Association) in 2015 showed that Google could earn $100 million from Vietnam.

Meanwhile, as Nhan The Luan, CEO of Nhaccuatui.com, commented, it is unfair that Google, Youtube and Facebook set up thousands of servers in Vietnam, provide services to millions of Vietnamese and hold 70 percent of the ad market share, but do not have operation licenses and do not respect Vietnamese laws.

 

 

Source: VietNamNet

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