Why Digital Ad Taxes will make you focus more on high-quality content

Content-Plan statt Digitalsteuer-Überraschung

Since the beginning of 2020 there’s a new law defining additional “digital ad tax” for online advertisement in Austria. Though it was intended to be paid primarily by large companies such as Google, Facebook and Amazon, everybody using their ad services within Austria could soon be charged.

The political idea was to charge a five percent fee on all revenues generated by Google & Co. with online ads in Austria. Local companies were said to be exempt from this.

But now it seems like the critics were right: Like the Austrian newspaper Standard” reported [in german], Google is already sending out information to their clients informing them that the tax would be charged on top of all ad fees targeting users in Austria. A decision that might seem understandable from Google’s point of view, but one that will definitely increase the pricing for their ad services by at least five percent. This is especially valid for local clients in Austria.

It’s said to be charged by Google starting from the second half of this year. And it can be assumed that other international companys offering their digital ad services in Austria will act the same way Google does.

Generic traffic on the rise

At least in the long term, this does not necessarily put Austrian companies (or companies advertising in Austria) at disadvantage. The governments of many other countries are also considering similar taxes for online advertising services – see the OECD’s statement on “the Tax Challenges Arising from the Digitalisation of the Economy” (PDF) for details.

If and when these considerations will be turned into national legal frameworks – or whether there will be a common solution for (at least) Europe – remains unknown for now. And let’s keep in mind that “taxing tech companies” would be an object of dispute between Europe and the USA.

However, it seems clear that high-quality website content will become even more important in the future. The latest adaptations of the Google algorithm as well as of Google’s General Guidelines have long since pointed in this direction. But now the threat of a five percent surcharge could be a further argument for investing again in a sustainable content strategy and capable content producers.

Sustainability through quality content

Of course, good content also has its price but at least clients do not have to fear surprising tax expenses. And what’s more, the purchased product remains online, even if – whether planned or due to sudden taxation – one has stopped investing money. At Jobiqo we support our clients with all things content – from content strategy to creation and maintenance for their job boards. Discover more about our services and get in touch.

Foto: Joost Crop/Unsplash.com

%d bloggers like this: