A further investigation by The Times has found that the brands are unwittingly funding extremist videos.
As a result the brands have pulled millions of pounds worth of advertising from the video platform.
According to The Times, Google has been called to explain itself to the government.
The paper reported that the videos included "rape apologists, anti-Semites and banned hate preachers".
Jaguar Land Rover was among brands that pulled its ads last month after a similar investigation by The Times.
A Google spokesman said: "We have strict guidelines that define where Google ads should appear, and in the vast majority of cases, our policies work as intended, protecting users and advertisers from harmful or inappropriate content.
"We accept that we don’t always get it right, and that sometimes, ads appear where they should not. We’re committed to doing better, and will make changes to our policies and brand controls for advertisers."
Dan Brooke, Channel 4’s chief marketing and communications officer, said the channel is "extremely concerned" about its advertising being placed alongside offensive material on YouTube.
"It is a direct contravention of assurances our media buying agency had received on our behalf from YouTube," Brooke said. "As we are not satisfied that YouTube is currently a safe environment we have removed all Channel 4 advertising from the platform with immediate effect."
This article first appeared in PRWeek sister title Campaign
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