Alphabet’s Google Joins Facebook in Ad Crackdown



Google aims for the ticket resale market

Google’s new advertising policies aimed at the ticket resale market have come into force, according to the BBC. Alphabet’s (GOOGL) Google, primarily focused on advertising, generated almost 99% of Alphabet’s overall revenue in 4Q17.

Under the new policies, Google requires ticket resale websites to clearly show that they are second-hand ticket marketplaces. Ticket resellers that fail to comply with the new advertising policies will be prohibited from running commercials on Google properties, including YouTube. Through its StubHub business, eBay (EBAY), is one of the world’s leading ticket resellers. Others are RazorGator, TicketsNow, and Seatwave.

Article continues below advertisement

Ensuring safety for users

The decision to demand more ad transparency from ticket resellers is part of Google’s efforts to prevent exploitation of its users. The secondary ticketing market has been controversial recently, amid claims such as buyers being overcharged or misled into buying invalid tickets.

Google’s crackdown on the secondary ticketing advertising market mirrors Facebook’s (FB) recent move to prohibit all ads promoting cryptocurrency investments. Facebook made the move to protect users from deceptive financial products.

Ad crackdown slowed growth at Baidu

In 2016, as Baidu (BIDU) launched a crackdown on bad ads (primarily healthcare ads), the company’s revenue growth slowed. However, its efforts paid off, with growth rebounding later. Baidu, referred to as the “Google of China,” is one of China’s largest Internet companies, alongside Alibaba (BABA) and Tencent (TCEHY). Alphabet’s advertising revenue grew 21.4% year-over-year in 4Q17.


More From Market Realist