financetom
Business
financetom
/
Business
/
Google knew publishers would dislike ad tech change that helped it profit
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Google knew publishers would dislike ad tech change that helped it profit
Sep 13, 2024 1:17 PM

ALEXANDRIA, Virginia, Sept 12 (Reuters) - Google

knew publishers would balk when it took measures in

2019 to keep them from diverting ad sales to competitors,

prompting it to try to make the change look more palatable,

according to internal documents shown at the tech titan's

antitrust trial on Thursday.

Google's removal of the feature that publishers used to

reduce their dependence on Google is a key piece of the case in

which the U.S. Department of Justice and a coalition of states

are seeking to show the company unfairly dominated markets for

the technology that facilitates online advertising.

The Justice Department showed emails and documents where

Google employees discussed the company losing revenue because

publishers were using their ability to set a higher minimum for

bids from Google's AdX than for other exchanges.

The result was that when ads were offered through multiple

exchanges, publishers often sold to exchanges other than

Google's.

The company knew publishers were willing to accept making

less money on some ad sales in exchange for the ability to

preference other ad tech companies, such as those who charged a

lower fee, according to the documents.

"It helps them to keep Google at bay and put pressure on us

(similar to any industry)," Google executives discussed on an

email thread in 2017.

As Google prepared to terminate the feature in 2019,

employees discussed how to mitigate potential blowback from

publishers.

Rolling the change out by itself "would be viewed as pure

loss of functionality that we're doing for our own (perceived

'nefarious/self serving' reasons)," Nitish Korula, then a

research scientist at Google, said in an email.

Google ultimately introduced the change alongside other

features publishers favored, including the end of a practice

whereby Google's ad selling tools would receive a "last look"

that let it outbid other sellers.

The changes were meant as improvements to make the system

simpler and fairer, and Google estimated its top 500 publishers

saw a median increase of 2.7 percent in ad auction revenue,

former Google employee Rahul Srinivasan testified.

But publishing executives, including at the New York Times ( NYT )

, News Corp ( NWSA ) and The Weather Company, revolted

against the loss of control, according to recordings of an April

2019 meeting played in court.

"You have made it next to impossible for any of us to figure

out how to increase our yield with partners outside of Google,"

Jana Meron, then an advertising executive at Business Insider,

said in one clip.

The trial is expected to last multiple weeks. If U.S.

District Judge Leonie Brinkema finds that Google broke the law,

she would later consider prosecutors' request to make Google at

least sell off Google Ad Manager, a platform that includes the

company's publisher ad server and its ad exchange.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
EHang, Enpower Team Up On Next-Gen eVTOL Tech: Details
EHang, Enpower Team Up On Next-Gen eVTOL Tech: Details
Nov 11, 2024
EHang Holdings Limited ( EH ) shares are trading higher premarket on Monday. The company disclosed a long-term strategic partnership with Zhuhai Enpower Electric Co., Ltd. The collaboration will focus on co-developing high-performance electric motors and motor controllers for EHang’s electric vertical take-off and landing (eVTOL) aircraft. The collaboration aims to develop customized electric motor drive systems tailored to the...
Trump Media (DJT) Stock Surges On Monday Pre-Market As Trump Denies Sale Rumors
Trump Media (DJT) Stock Surges On Monday Pre-Market As Trump Denies Sale Rumors
Nov 11, 2024
Trump Media & Technology Group Corp ( DJT ) experienced a 9.37% increase in pre-market trading on Monday, according to Benzinga Pro. This follows president-elect Donald Trump‘s announcement on Friday that he has no plans to sell his stake in the company. The statement comes amidst renewed investor interest following the election. What Happened: Trump has urged investigations into alleged...
India's Hindalco beats Q2 profit view on higher aluminium prices
India's Hindalco beats Q2 profit view on higher aluminium prices
Nov 11, 2024
Nov 11 (Reuters) - India's Hindalco Industries , one of the country's largest aluminium and copper producers, posted a higher-than-expected second-quarter profit on Monday, helped by higher aluminium prices. The company, owned by the Aditya Birla Group, said its consolidated net profit jumped 78% to 39.09 billion rupees ($463.3 million) for the three months ended Sept. 30, beating estimates. Analysts,...
AbbVie's schizophrenia drug misses main goals of two trials
AbbVie's schizophrenia drug misses main goals of two trials
Nov 11, 2024
Nov 11 (Reuters) - AbbVie ( ABBV ) said on Monday its experimental schizophrenia drug failed to meet the main goal of two mid-stage trials. (Reporting by Puyaan Singh in Bengaluru; Editing by Shinjini Ganguli) ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved