The quality of YouTube’s ad inventory has been a recurring refrain in 2017. Earlier in the year, brands engineered a boycott after learning that some of their spots ran next to videos from extremist groups. Then, in November, the presence of inappropriate, ad-enabled content intended for children triggered the suspension of more YouTube-based campaigns.
One of YouTube’s responses to these controversies, according to a report from Business Insider, is a price hike. Sources say the video site will ask brands to commit more money to purchase exclusive space next to vetted content.
Business Insider‘s report, citing “people in the advertising industry who work with YouTube, help place ads on websites, or buy inventory for advertisers,” said that the going rate for spots in the reserved media tier could go up by nearly 20%. In return, YouTube will ensure that the placements those clients pay for will come on videos that are brand-safe and appropriate for each brand’s target audience.
In addition to ads sold directly by YouTube, inventory controlled by third parties would likely see its own price hike, Business Insider suspects. Such a parallel increase would prevent the third parties from losing money on the space they pick up from YouTube.
YouTube did not comment on Business Insider‘s report.