Google competes by offering tools that deliver for both ad buyers and sellers
On Monday Google will go to trial to defend against claims filed by the Department of Justice (DOJ) about some of our advertising technology. In court, we will show that ad buyers and sellers have many options, and when they choose Google they do so because our ad tech is simple, affordable, and effective. In short — it works.
Ad tech helps people who want to sell something find someone who wants to buy it. It helps online publishers, content creators and bloggers make money, and businesses find new customers — which in turn keeps the internet free and open to use for all of us.
By picking winners and losers in a highly competitive industry, the DOJ risks making it more expensive for small businesses to grow and for websites and apps to make money. Let’s not break what’s working.
Here are the key points we’ll be making:
There are hundreds of ad tech competitors — including many big players.
The DOJ’s narrow view of the ad tech market doesn’t reflect reality. We are one of hundreds of companies who actively compete to enable the placement of ads across the internet. Media companies like Comcast and Disney, retailers like Walmart and Target, and specialized ad tech companies like Criteo, Index Exchange and the Trade Desk all invest in building their online ads services. In the last few months alone, Paypal, Costco and United Airlines introduced new ad tech services.
Even when it comes to offering a vertically integrated “full stack” of products that help ad buyers and sellers — a core criticism in the DOJ’s complaint — we aren’t the only option. After its recent acquisition of Xandr, Microsoft also offers customers a vertically integrated suite of ad tech products, and Amazon and Meta have similar offerings. It is a fiercely competitive industry — and new technologies are making it more dynamic each day.
Ad buyers and sellers mix and match our tools with those of our rivals.
Google’s ad tech products are built to work with those of our competitors, and businesses often mix and match ad tech providers, regularly using different platforms simultaneously. We give rivals access to our products even though American antitrust law doesn’t require it. It’s what our customers expect, and it helps the whole ads ecosystem.
Ad buyers and sellers have a huge range of choices among ad tech providers, and they exercise those choices daily. The average advertiser uses three platforms to buy ads — and can choose from hundreds of options. And the average large publisher uses six platforms to sell ads — and can choose from over 80 options.
Our ad tech fees are lower than reported industry averages.
We compete in a flourishing market by offering ad tech that works and gives advertisers a good return on their investment. You wouldn’t know it from reading the DOJ’s complaint, but Google’s ad tech fees are actually lower than reported industry averages — hardly a sign of monopoly abuse. Publishers selling ad space keep about 70% of the revenue when using our products, and for some types of advertising, they keep even more. Making it harder for businesses to access the integrated products and services they need could raise fees for advertisers and lower returns for publishers. Nobody wins in that scenario.
DOJ’s case could make it harder for small businesses to grow and hurt the quality of ads people see.
The ability to buy online ads cheaply and simply has opened up advertising to even the smallest retailers. 69% of U.S. SMBs currently use digital ads to find new customers. Our products are particularly popular with small businesses who don't have the time and resources to employ advertising experts, and like using our simple and effective tools. And our systems help consumers by not just showing more relevant and useful ads, but also by setting a high bar for security and respecting user choice.
With the cost of ads going down and the number of ads sold going up, the market is working. The DOJ’s case risks inefficiencies and higher prices — the last thing that America’s economy or our small businesses need right now. We will make sure their voices are heard at trial and we look forward to making our case.
