That’s how several witnesses described the impact of the technology on Google’s dominance. While AI might be creating new opportunity in online ads, it hasn’t fundamentally changed the way display advertising works, and Google’s unshakeable hold on it, they testified.
The Trade Desk Chief Revenue Officer Jed Dederick said after years of stagnation in the display ad market Google dominated, he’s finally optimistic it can see innovation with the right remedies. Google is painting the decline in display ads as a sign of its increasing irrelevance, but Dederick says a break up could incentivize more investment in it.
Government witnesses had different takes on whether a potential acquirer should be allowed buy both of Google’s sell-side tools, if forced to divest, or just one. Kevel’s Avery thinks it would work best to sell them together, but Omnicom’s Lambert fears that would just recreate the same problem that exists with Google.
Government witnesses across the ad ecosystem have testified that transparency is at the top of their wishlist for remedies to achieve. That means knowing why some bids on ads win over others. They say that publishers and advertisers alike have little insight into this today, since that decision ultimately happens in the “black box” of Google’s ad server.
Several witnesses for the DOJ have advocated that the government go even farther than it’s proposed by forcing Google to sell its publisher ad server from the outset, in addition to its ad exchange. “You can’t take half the antibiotics and hope the disease goes away,” Jay Friedman from the Goodway Group testified.
Luke Lambert, who works for a subsidiary of Omnicom Media Group, testified that even a one day outage of Google’s AdX exchange would cause “extreme” pain for his team because they would need to scramble to find new ways to spend ad budgets. Google’s attorney is suggesting that could be the case if AdX has to be divested to a new buyer.
James Avery, who runs an ad server company for retailers called Kevel, testified he’d like to buy Google’s ad server and exchange, ideally together. Index Exchange CEO Andrew Casale is also interested. Google’s cross examination has tried to cast this interest as a way that the industry could reconsolidate under new ownership.
The government will continue its case-in-chief today, where it’s arguing for a break up of Google to restore competition to the markets for publisher ad tools. Yesterday, we heard from a publisher witness and a rival ad exchange CEO. Catch up on our coverage here.
Without a break up of its ad tech monopoly, the DOJ argues, Google will find another way to cheat.
Andrew Casale, CEO of ad exchange company Index Exchange, testifies that Google’s proposed solutions leave too much room for it to maintain dominance. Casale also says Index would consider buying AdX if Google were forced to sell it.