Search engine giant Google is continuing to hemorrhage advertisers as reports reveal clients are unwittingly supporting terrorist organizations.
Tim Kist, Certified Management Consultant with TK3 Consulting in Winnipeg explains Google's automated placement of ads means websites get paid when they offer to hostthird-party advertisements.
"In theory it's wonderful, except when those websites are terrorist websites, pornographic websites... in a sense these advertisers were unknowingly funding those organizations," he says.
Despite Google's best efforts he says their algorithms still cannot guarantee advertisers won't end up on offensive websites and organizations they don't want to be associated with.
He notes that broken trust has meant a large financial impact.
The current estimate is Google, as well as subsidiary video-sharing website YouTube, will lose over $750 million in cancelled ad contracts.
Kist says the context in which you advertise is important, and with Google many found they lost control of the environment in which their message was placed.
"I'm so surprised that so many advertisers were blind to that," Kist says. "And spent a lot of money not knowing where and what their ads were being placed on,"
Some of the advertisers who've pulled support include McDonald's, Johnson & Johnson, as well as PepsiCo.