According to Business Insider’s 2017 Digital Trust survey, Facebook and YouTube are regarded by consumers as having the most annoying advertisements.
Out of 1,740 adults polled, 45 percent thought that Facebook’s advertising got on their nerves the most, while 43 percent thought YouTube took the top spot. The gap between the top two and the rest of the list is extreme; Twitter was in 3rd place with only 6 percent of the votes, with Instagram and Snapchat followed with 3 percent each. LinkedIn took the last spot at 1 percent.
There is a notable division between the ages. Older generations tend to think that Facebook is worse, while millennials have a lower tolerance for YouTube advertising. One possible explanation is that those who grew up with traditional TV sets may find it easier to sit through ads before and during watching a show.
Advertising revenue generated on Facebook was close to $27 billion in 2016, and while Google doesn’t reveal how much YouTube directly contributes to its advertising revenue, it is estimated to be around 12 percent of total net revenues, making it a significant revenue source for YouTube’s parent. Together, Facebook and YouTube account for 75 percent of all online advertising spending.
Google is already facing an advertising boycott for appearing soft on extremist content and “hate speech,” losing around $750 million directly. $20 billion was also wiped off the value of the stock of its parent company Alphabet.
If Facebook and Google don’t change their policies fast enough, companies looking to sell their products may go elsewhere. Sir Martin Sorrell, CEO of the world’s largest advertising company WPP, told CNBC in an interview that “what our clients want, and indeed what the agencies want, is more competition in the marketplace, so anything that provides more competition to the duopoly of Facebook and Google.”