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Why Timing of AT&T’s Return to YouTube Is Beneficial

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AT&T worked with Google to address concerns

AT&T (T) is planning to run advertisements on YouTube again after a nearly two-year holdout. AT&T was one of the corporate giants that yanked its ads from YouTube after media reports in March 2017 that some ads on the platform were appearing next to objectionable content like videos promoting hate or violence. Verizon (VZ), Johnson & Johnson (JNJ), and Walmart (WMT) are the other major brands that joined AT&T in pulling ads from YouTube in an attempt to protect their brand reputation.

During the nearly two years that AT&T didn’t advertise on YouTube, the company worked with Google (GOOGL), which owns the popular video platform, to create systems that will ensure that its YouTube commercials do not appear next to content that conflicts with its corporate values, Reuters reported.

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AT&T has more products to promote

AT&T is returning to placing ads on YouTube at a time when it is seeking greater marketing outreach as its portfolio of products has expanded, and it needs to drum up publicity for its new products. For example, AT&T last year launched a video streaming service called WatchTV and is planning to launch another video service under its WarnerMedia division later this year. Walt Disney (DIS) and Comcast (CMCSA) also are preparing to launch digital video services that will compete with AT&T’s services.

The digital video market is becoming crowded quickly, boosting the need for companies like AT&T to find new outlets to reach potential customers. YouTube serves more than 1.9 billion active users, who generate billions of views every single day.

AT&T’s revenue jumped 15.2% year-over-year to $48 billion in the fourth quarter, which ended in December.

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