The Google Empire: How One Company Conquered the Ad Tech Industry and Held Publishers Hostage
In a bombshell testimony, a former publishing executive revealed the dark truth about Google’s grip on the ad tech industry. Stephanie Layser, a former programmatic advertising executive at News Corp, testified that Google’s ubiquitous ad tool is a monopoly that holds publishers hostage. According to Layser, Google’s tool, Ad Manager, is so entrenched in the industry that it’s nearly impossible for publishers to escape its grasp, even if they want to.
A Web of Control
Layser described how Google’s Ad Manager is a 25-year-old relic that’s slow and clunky, but because it’s the only way to access Google’s vast advertiser demand, publishers are stuck with it. She testified that she was "begging" Google for log-level data, which would have given her insight into their transactions, but was denied. This lack of transparency meant she couldn’t innovate or maximize revenue, leaving her feeling stuck.
A Monopoly Born of Success
Google’s Ad Manager has a staggering 90% market share in the US, with many publishers using it as the only ad tool they’ve ever known. Layser estimated that only three publications out of hundreds don’t use Ad Manager. This near-universality means that there are "legions" of publishing professionals who have only ever worked with Google’s tool, making it a self-sustaining monopoly.
The DOJ’s Case Against Google
The Department of Justice is suing Google, alleging that the company is using its monopoly power to illegally tie together two of its products, Ad Manager and AdX. Layser’s testimony supports this claim, revealing how Ad Manager’s integration with AdX makes it difficult for publishers to switch to a different tool.
The Advertiser’s Perspective
Jay Friedman, CEO of the Goodway Group, testified that Google’s AdX has been the only exchange his company has not been able to negotiate fees with, despite its higher rate. "We were told it wasn’t an option," he said. This lack of competition means that advertisers are at the mercy of Google’s terms.
A Former Google Exec’s Confession
Eisar Lipkovitz, a former VP of engineering for display and video ads at Google, testified in a prerecorded deposition that he still has PTSD from his time at Google. He expressed frustration with colleagues who disagreed with his view of how the tools should work or moved too slowly on projects. Lipkovitz recognized a potential conflict of interest in the way Ad Manager and AdX were integrated, saying that those who denied it were making "self-interested arguments."
The Verdict
Google’s dominance in the ad tech industry is a testament to its success, but it’s also a recipe for disaster. With its stranglehold on the market, Google has created a web of control that makes it difficult for publishers to escape its grasp. The DOJ’s case against Google is a necessary step in breaking up this monopoly and promoting competition in the ad tech industry.
