![]() Google has warned that it would remove Google AdSense from any pages with such content. Google AdSense sent an email to all publishers informing them about a new policy related to the Russian war on Ukraine that could cause a reduction in earnings.įor publishers who utilize user-generated content (UGC), such as in comments or online forums, this policy could directly impact their monetization opportunities within the platform. Meta’s Q1 earnings also reflect the hit of suspended ads from Russian companies. One of the reasons cited for this decision is the weakening advertising demand globally driven by economic uncertainty and the prognosis of a coming recession. Revenues from Russia represented about 1% of Google’s revenues in 2021, primarily coming from advertising, so it’s clear that this decision has a sizeable effect on Google’s bottom line.Īnother source of negative impact is due to the advertiser pullback in Europe, especially on YouTube.Īnother example is Meta which reduced advertising demand both within Europe and outside. Google stated in its blog post on March 10: “Following our announcement last week that we paused Google ads in Russia, we’ve now paused the vast majority of our commercial activities in Russia – including ads on our properties and networks globally for all Russian-based advertisers, new Cloud sign ups, the payments functionality for most of our services, and monetization features for YouTube viewers in Russia.” ![]() The suspension also affected Russian-based companies from advertising outside of the country. How are global companies responding to the crisis?Īlphabet (Google’s parent company) has revealed that its 2022 Q1 earnings have suffered because the company has suspended most of its commercial activity in Russia. Not surprisingly, July 2022 was the lowest month for ad spending since COVID-19, with a 12.7% year-over-year decline. With six months into the war and escalating sanctions, it’s clear that a “severe” scenario is a more likely possibility. The forecast includes two scenarios–“moderate,” an official estimate, and “severe,” which would apply if the war in Ukraine would last a prolonged time. ![]() The region, which comprises Ukraine, Russia, and over 20 other countries, will see at least 22.8% less media ad spending this year compared with 2021. The Russian invasion of Ukraine on February 24, 2022, dramatically affected the advertising industry.Īccording to the eMarketer forecast, ad spending in Central & Eastern Europe will be hit hard. What is the current state of programmatic advertising? Why are publishers affected by the current situation?.How are global companies responding to the crisis?.What is the current state of programmatic advertising?.We put together some key trends and factors influencing the eCPM drop this summer and their broader repercussions for the advertising industry. However, this year, the uncertainties brought by the war in Ukraine and subsequent economic and political factors have changed the picture and will likely continue to impact advertising spending and revenues in the future. Traditionally, high-spending seasons like Q4 are associated with increased eCPM prices, and low-spending seasons like Q1 with eCPM drop. Previously, we covered how seasonal trends in digital advertising influence publishers’ ad revenue during the year.
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