Publishers Are Likely to Pay More for Ad Costs If Google Spins Off Its Adtech | AdWeek
The Department of Justice (DOJ) is stepping up to challenge the mighty Google, launching an antitrust trial to shake up its ad tech business. This isn’t your average courtroom drama—it could send shockwaves through the programmatic ad industry, sparking significant changes. If the DOJ wins and forces Google to sell off its ad tech operations, the competition could heat up, which sounds like a business win. But in the short run, things might get a bit chaotic. Some publishers are already bracing for a roller-coaster ride where demand shifts and costs soar.
Scott Messer, a consultant in the media world, doesn’t mince words. He believes that while some companies might thrive by offering premium services, others—especially those with lower-quality inventory—could get left behind. It’s not just about competition but about who can grab buyers’ attention in an evolving marketplace. Google’s dominance in publisher and advertiser products has long been a thorn in the side of publishers and smaller ad tech firms, who argue that Google’s practices have stifled fair competition.
The DOJ trial isn’t Google’s first run-in with antitrust accusations either. It’s hot on the heels of another battle over its search business monopoly, where the possibility of breaking up the tech giant looms. The stakes are high, not just for Google but for the entire ad tech ecosystem.
One of Google’s powerful tools is its Google Ad Manager (GAM), which has become a publisher’s go-to due to its affordable pricing. GAM offers a flat fee structure that, thanks to Google’s enormous scale, has made it hard for other ad servers to compete. However, if Google is forced to part with this gem, a new owner might find it challenging to keep the costs low. This could open the door for other ad servers to swoop in with more advanced features, but the trade-off might be higher costs for publishers.
If Google loses control of GAM, we could see more competitive pricing and revenue-sharing deals for publishers as other platforms scramble for a piece of the pie. But there’s a catch. If Google’s dominance in its SSP (supply-side platform) fades, it might shift its focus to its own Google Ads ecosystem, which could pull demand away from the open web, leaving smaller publishers with a shrinking slice of the pie……..
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Rising Dough
How might a more competitive ad tech industry, with Google playing a smaller role, impact how businesses market their products, and what ripple effects could this have on the economy or consumers?
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