Big Tech has been recently affected by a massive scandal that can potentially redraw the surface of online advertising. It turns out that about 60% of all ad clicks have been made by bots, not humans. It is safe to assume that international companies that spend millions and millions of US dollars on Internet ads per year are dissatisfied with the finding.
Keith Weed, head of marketing at Unilever, brought up the issues at the Cannes Lions Festival of Creativity, where he stated that this ecosystem is deeply corrupted. Procter & Gamble has previously reported online advertising budget cut of $100 million. The company, according to the marketing specialists, felt absolutely no effect, proving that digital ads are largely ineffective. Both Procter & Gamble and Unilever have spent billions of dollars on advertising and know for sure what truly works for them and what not.
Two companies that benefit from bots doing the ‘job’ of regular customers are Facebook and Alphabet (the one behind Google). Should the scandal go public, both enterprises may want to reevaluate their pay-per-click prices at the same time dramatically decreasing own revenues. Stock prices of both media giants can be negatively affected by the event.Trade now