YouTube To Allow Ads On Coronavirus Videos After Suspending Them Earlier

Alphabet Inc.’s GOOGLGOOG YouTube announced updated advertising guidelines reversing its decision to ban monetization for coronavirus-related content.

What Happened

In a statement, YouTube announced that it would monetize videos with coronavirus related content, “Due to the ongoing nature of this situation, we’ll begin enabling ads for content discussing the coronavirus on a limited number of channels,” the platform announced. It added creators that “self-certify” and a “range of news partners” will have their videos monetized, and more channels will follow.

On Wednesday, Susan Wojcicki, CEO of YouTube, addressed the question of sensitive events in a letter saying that YouTube’s policy was designed to apply to “short-term” events of “significant magnitude.” 

Referring to the coronavirus, Wojcicki said that it is “an ongoing and important part of everyday conversation.” She promised that YouTube would enable ads for content discussing coronavirus on a limited number of channels and expand monetization to more creators and news organizations “in the coming weeks.”

Why It Matters

YouTube had started demonetizing videos about the coronavirus and had labeled it as a “sensitive topic” at the beginning of March, which left many YouTube content creators unhappy. 

The suspension of monetization for coronavirus content videos was done to protect advertisers, according to Tom Leung, a product officer at YouTube. 

Last month, Alphabet revealed for the first time ever that it generated $15 billion in revenue from YouTube ads in 2019.

Price Action 

Alphabet class A shares traded 0.90% lower at $1,210 on Wednesday in the after-hours session. The shares had closed the regular session 5.04% lower at $1,210.90.

The company’s class C shares traded 0.41% lower at $1,215 in the after-hours session. The shares had closed the regular session 5.08% lower at $1,215.41.