ALEXANDRIA, Virginia, Sept 10 (Reuters) - News Corp ( NWSA )
explored switching away from Google's advertising tools in 2017
but estimated that doing so would lose the Wall Street Journal
publisher at least $9 million in ad revenue, a former executive
testified on Tuesday at Google's antitrust trial in Virginia.
Google frustrated publishers by introducing features that
benefited itself more than them, said Stephanie Layser, who
worked in advertising technology at News Corp ( NWSA ) from 2017 to 2022.
Despite those concerns, almost no one in the publishing industry
used anything else, because Google's publisher ad server is tied
to Google's ad exchange, she said.
"I felt like they were holding us hostage," Layser said on
the stand.
She testified on the second day of what is expected to be a
multi-week trial in which the U.S. Department of Justice will
seek to show that Google monopolized markets for publisher ad
servers, advertiser ad networks and the ad exchanges that
connect the two.
NewsCorp documents shown at trial estimated that in 2016,
the publisher made $83.3 million from ads sold instantaneously
through ad tech tools. More than half of those transactions went
through Google's ad exchange, with $18.4 million from Google ads
advertisers.
The publisher estimated that around half of that, or $9
million, was exclusive to Google and would be lost in any shift
to another product.
By the time she left, around 70-80% of News Corp ( NWSA ) ad
transactions flowed through Google's ad exchange, Layser said.
Google has said that the case is based on an outdated look
at the industry, and that large publishers use an average of six
different platforms to sell ads that there are more than 80 such
services.
At trial, prosecutors are seeking to show Google used
dominant positions in technology for publishers and advertisers
to keep them from using other tools and undercut bids placed
through competitors' products.
If U.S. District Judge Leonie Brinkema finds that Google
broke the law, she would 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.