By Dhiyay Chohan, Global Head of Programmatic, M&C Saatchi Performance
On September the 9th the second anti-trust lawsuit against Google in two years began. The case is brought by the Department of Justice (DOJ) and claims that Google exploited its position in the digital advertising industry by dominating critical components of the ad tech ecosystem. The first day of the trial reportedly focused on the technical complexity of the ad tech ecosystem, specifically header bidding, first-look agreements, and pricing restrictions inside the advertising ecosystem. The argument centers on whether Google improperly used its influence over ad exchanges, advertiser tools, and publisher ad servers to hinder competition.
Google’s defense is likely to emphasize the competitive nature of online advertising and how developments such as dynamic allocation benefit all parties involved. This case is part of a larger attempt by regulators to limit the power of Big Tech corporations, with a specific focus on Google’s dominance in the ad tech business.
What is the impact on marketers and advertisers?
While it is too early to state clearly what the exact impact could be, these are some potential outcomes:
Potential Disruption:
If the court demands structural changes in Google’s ad business, marketers could encounter short-term disruption. Changes in the tools, platforms, and processes on which they rely may present difficulties, particularly if they rely largely on Google’s services for their Ad Stack and campaigns.
Greater flexibility, increase in options:
If Google is compelled to divest or open its ecosystem, marketers may have more autonomy to select from a wider range of ad platforms, ad exchanges, and technology partners. This broadened option can assist marketers in better personalizing their ad campaign to specific business requirements.
What could change?
This could be beneficial to tech companies as well as advertisers because Google’s dominance in ad exchanges and publisher tools may have hampered innovation and competition. If Google is compelled to adjust, it may allow more competitors in the ad tech field to invest and create innovative solutions, resulting in more diverse options and improved technology for marketers. This may improve ad targeting, placement, and effectiveness as well as efficient pricing of products due to more choice.
What should advertisers do to prepare for any change?
Advertisers are likely to be using one or more Google solutions, but it is too early to state the potential and specific impact, the case may take several months to conclude.
However, it is wise to take a strategic test-and-learn approach and continually test a range of channels rather than relying heavily on any one channel or product, which can make you vulnerable to changes outside of your control.
One way advertisers can mitigate influences outside of their control is to establish a fully developed measurement framework to ensure a solid understanding of ROAS. This is becoming more essential than ever to ensure advertisers have a holistic understanding of the impact of any media spend. Find out more about setting up a future-proofed measurement framework here.
In Summary
“For marketers, the DOJ’s antitrust action against Google represents a watershed moment. If effective, it has the potential to change the digital advertising industry by providing much-needed openness and competition.
Dhiyay Chohan, Global Head of Programmatic, M&C Saatchi Performance
This isn’t just about legal disputes; it’s about establishing a fairer environment in which marketers can receive more value for their ad spend, explore new technologies, and have more control over where their budgets go.”
