Office Hours: Why Don’t Companies Advertise on Explicit Sites? How to Negotiate Stock Options with an Employer, and How Scott Built a Public Speaking Career

Advertising Risks

Advertising on platforms with explicit or controversial content poses significant reputational risks for companies. Scott Galloway highlights that advertisers are wary of associating their brands with such content, fearing damage to their reputation. He notes that major advertisers, like those on Twitter, have withdrawn due to these concerns, despite potential opportunities for lower costs and higher ROI in less crowded spaces 1. Galloway explains, "Advertisers don't want to be near explicit or controversial content," emphasizing the delicate balance between cost and brand image.

Advertisers don't want to be near explicit or controversial content.

--- Scott Galloway

This reluctance creates a challenging environment for platforms seeking to attract advertising revenue 2.

   

Small Platform Opportunities

The shift away from controversial platforms opens up potential opportunities for smaller platforms. Scott Galloway suggests that as advertisers leave larger platforms, smaller ones might offer more compelling deals to attract business. However, he acknowledges the dominance of giants like Meta and Alphabet, whose vast data and reach make them unrivaled in the advertising world 1. Galloway points out, "Most advertisers who are smart, I pretty data driven, end up at kind of one of three toll booths, and that is Amazon, meta or Alphabet."

Most advertisers who are smart, I pretty data driven, end up at kind of one of three toll booths, and that is Amazon, meta or Alphabet.

--- Scott Galloway

This dominance presents a significant challenge for smaller platforms trying to compete in the advertising space.