Alphabet Inc’s GOOG GOOGL video streaming service YouTube will not sell full-day masthead advertisements beginning next year, CNBC reported Monday.
What Happened: The coveted advertisement spot on the home page will only be available on a per-impression basis beginning 2021, according to CNBC.
“For years, advertisers asked us for more flexible options for appearing in the YouTube masthead, which is why we introduced the cost-per-thousand (CPM) Masthead in 2019 and earlier this year told advertisers that it would be our primary masthead reservation option in 2021,” Alphabet told CNBC.
The company said that the change applies across all verticals and is not limited to only political advertisers.
Why It Matters: The Trump campaign began advertising on the masthead Sunday, which is considered one of the most expensive ads online, The Hill reported.
Trump has purportedly managed to secure the masthead 20 times in the current election cycle. The president secured the ad spot for the two days before Election Day, as well as on the day of polling, which led to accusations by a Democratic spokesperson that YouTube had “cut Democrats out the process,” reported the New York Times.
The masthead reportedly costs $2 million a day and is only available currently to one advertiser per day.
While broadcast radio and television laws require candidates' ads to be given equal time, internet companies are free to devise their own policies regarding such ads, the Times noted.
Price Action: Alphabet Class A shares closed nearly 0.5% higher at $1,624.32 on Monday and gained 0.53% in the after-hours session. On the same day, the company’s Class C shares closed nearly 0.3% higher at $1,626.03 and gained 0.32% in the after-hours session.
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