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Nestle (OTCMKTS:NSRGY) And AT&T Inc. (NYSE:T) Pause Ads On YouTube On Concerns Of Pedophile Comments On Children Videos

Alphabet Inc (NASDAQ:GOOGL) was up 0.07% to close at 1,117.33 in the previous trading session. Here is latest buzz on the company.

YouTube suffers a setback from prominent companies like Nestle (OTCMKTS:NSRGY) and AT&T Inc. (NYSE:T) on the news of pedophiles commenting on the children videos. However, the ad boycott of YouTube has not affected the results of its parent Alphabet. The parent company reported revenues of $24.75 billion, an increase of 22% year on year, beating the analyst’s expectations of $24.22 billion.

Ruth Porat, Chief Financial Officer of Alphabet, said the revenues of YouTube is growing at a fast pace. Mobile search contributed to the growth in revenues of Alphabet. In the US, digital ad spending would reach $129.34 billion in 2019 (up 19%). Facebook and Google account for 60% of the total ad spending. The annual ad revenues of YouTube are over $10 billion despite this problem for years.

YouTube responds to ads pause

A Wired report and YouTuber Video have shown that pedophiles are commenting on the children videos causing damage to the brands. Responding to the ads pause by prominent companies like AT&T, Nestle, Epic Games, YouTube said it had disabled the comments on several videos. It has also removed offending channels and accounts. It has even sent memos to the advertisers saying that changes are in place to prevent pedophile comments on videos of young children. However, AT&T said it had stopped the videos until YouTube prevents pedophiles comments on children videos and protects the brand. The ad pause on YouTube seems temporary because of the extensive reach of advertising of Google.

Predator accounts evade protection mechanisms

According to The Times and BBC New investigations, several predator accounts evade the protection mechanisms implemented by YouTube to prevent abuse. Many youngsters innocently post the lewd comments while pedophiles knowingly post on some videos. Some comments are sexually explicit whereas others instigate kids to post videos for performing sexual acts.

A spokesperson of Mars said they shocked in dismay to see their ads are alongside the inappropriate and exploitative content. They immediately decided to stop all ads on Google worldwide and YouTube until a proper mechanism is in place to curb pedophile comments. Other companies like Deutsche Bank, Now TV, HP, and Cadbury also suspended ads on YouTube.

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