Google faces its first real challenge

While it may be a little misleading to suggest that Google has never faced any “real” challenges before, the difficulties surrounding the company’s advertising services is perhaps the most challenging to date. As we have covered in some recent articles, YouTube and Google website advertising services have come under severe criticism from governments and major corporate entities around the world. The problem is that some online adverts have mistakenly been matched with extremist and inappropriate websites/content where the website site/YouTube channel owners receive a share of Google’s income. So, as bizarre as it sounds, governments and corporate entities around the world may have inadvertently been funding extremist activities.

What can Google do?

Historically many companies the size of Google and with its reputation and influence often try to brush issues such as the advertising service difficulties under the carpet. Sometimes companies are so influential that they can get away with this but credit to Google the company has apologised, promised additional investment and held its hands up. Critics would suggest this is all good and well but Google has inadvertently been earning income from unsuitable third-party websites and sharing income with inappropriate website owners. So what can Google do now?

Google faces its first real challenge
With power comes responsibility

More robust filters

The amount of new content published to the Internet on a daily basis is mind blowing and in reality it is impossible to censor all content manually. Google, and other search engines, rely on an array of algorithms, filters, public reporting and its own investigation teams. Historically, these combined elements have managed to keep on top of the majority of inappropriate content and helped to avoid major issues such as inadvertent income sharing. However, it is a constant battle for the search engines and one which probably needs a concerted effort between them as well as additional investment.

Censorship/non-censorship

Over the years there have been heated debates about Internet censorship and what type of content should be allowed and what should not be allowed. While the majority of this comes down to personal opinion there are obviously some subjects which must never see the light of day and should be heavily censored. Criminals and terrorists have been using the Internet for many years now but as quickly as one’s website is taken down another will take its place.

We may need to bring in the Internet browsers as a further defensive layer against inappropriate content and websites. We have seen this in years gone by with regards to the illegal downloading of music and other content so why not the display of inappropriate content?

Profitability

While the issue of inappropriate income sharing reared its head before 2017 it is only over the last few weeks it has made headline news. Interestingly over the last week the Google share price has fallen from a high of $870 down to $840. While not necessary a major concern at this moment in time it will be if the company’s shares continue to fall on concerns about profitability. As a consequence, there is no doubt that Google will throw as much money as is required at this problem. It simply cannot afford to have concerns about its advertising revenue services because these are central to the company’s core profitability.

We will likely see more high-profile defections in the short term as corporate entities feel the pressure from shareholders and customers. However, in the medium to long term the simple fact is that no other online advertising service compares to Google at its best and therefore it is more than likely customers will return, probably without fanfare, sooner rather than later.

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