Alphabet Inc.’s GOOGL Google yesterday announced two changes in its AdSense advertising program. It unveiled a new platform that would help publishers better understand its policies against content violations and resolve violation issues quickly. It also introduced a technology upgrade that facilitates page level policy actions.
We note that programmatic advertising platforms like AdSense have proven profitable for publishers, advertisers and Google itself. We believe these platforms are contributing significantly toward boosting Alphabet’s shares that have rallied 21% compared with the Zacks Internet-Services industry’sgain of 17.6% on a year-to-date basis.
“Policy Center” for Publishers
Google stated that this new platform will offer publishers every detail about policy actions and help them limit causes of violation. With it publishers can fix policy violations efficiently by following step-by-step instructions and inform Google when pages are ready for review.
The company calls this platform a “one-stop-shop” for publishers and will be rolling it out in the coming weeks.
Page Level Policy Action
Google upgraded AdSense to page level policy action. Going forward, it will be removing ads from individual pages rather than full websites (the practice so far). The option of site level action would be there and applicable per requirement.
Though this will ensure fewer disruptions for publishers, Google made it clear that repeated policy violations would still lead to termination of publishers.
Alphabet Inc. Net Income (TTM)
YouTube May have “Policy Center” Soon
Google introduced some serious policy revamps in the wake of the YouTube ad controversy.
It implemented stringent quality control measures after companies started suspending their advertising on YouTube as their ads appeared alongside offensive or derogatory contents.
The measures include more fine-tuned advertiser controls, adding safer defaults, expanding video-level reporting for advertisers and deploying more staff and latest Artificial Intelligence powered tools to assess dubious content.
On the flip side, many YouTube creators have seen their ad revenues going down drastically. You Tubers complained that even videos that follow policies are falling prey to the new control measures and urged Google for more transparency.
So, with Google announcing an extension of the “Policy Center” platform to other publisher platforms, it is expected that YouTube creators will see some respite.
Steps like these make sense as Google’s AdSense network is extremely important from a business standpoint.We believe that the policy update will help Google not only address the growing controversy about misinformation on the web but also put up a clean image to advertisers who do not want their products to appear alongside dubious content.
Alphabet currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other stocks worth considering in the broader technology sector include Stamps.com Inc. STMP, Marchex, Inc. MCHX and Monolithic Power Systems, Inc. MPWR, each carrying a Zacks Rank #2 (Buy). Long-term expected earnings per share growth rates for Stamps.com, Marchex and Monolithic Power are 20%, 15% and 17%, respectively.
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May 16, 2017 at 07:58PM
from Zacks Equity Research