In the wake of Mars pulling its advertising from YouTube after another brand safety blunder, analysts have said a new opportunity has arisen for ITV and other broadcasters to take a larger market share of VOD advertising.
For the second time in as many years Mars said it had ceased advertising with YouTube after a Starburst ad had been placed over the start of a video by controversial drill group Moscow17.
One of the group’s members, Siddique Kamara, was stabbed to death in south London last week.
Last week Mars said that it had removed all online advertising on YouTube and was now working with the platform’s owner Google and its media agency Starcom to understand what went wrong.
“Until we have confidence that appropriate safeguards are in place, we will not advertise on YouTube,” the company said.
Responding to the news, Ian Whittaker, an analyst at Liberum, said: “the seemingly endless wave of YouTube problems on this issue creates an opportunity for ITV to take a greater share of the very fast growing £1.7bn UK online video advertising market.”[advert position=”left”]
ITV currently has a 6% share in the VOD market versus around 46% of UK TV advertising. Meanwhile the UK online video ad market grew 47% year on year in 2017 to around £1.7bn and is continuing to take share from other parts of online advertising.
“YouTube’s endless inability to prevent adverts appearing alongside inappropriate content would create an opportunity for ITV and other broadcasters to take share in the online video market by highlighting to advertisers that their online products offer a brand safe environment and an audience that is almost entirely human rather than bot traffic,” Whittaker said.
The analyst added that by ITV taking its share to 12% by the end of 2021 it would add 20% to Liberum’s earnings estimates.
A Google spokesperson told Mediatel it was actively working with the Metropolitan Police to review videos that may be connected with the murder of Mr Kamara.
“Along with others in the UK, we share the deep concern about this issue and do not want our platform used to incite violence,” they said.
