US lawsuit against Google could benefit Apple and others |
26 january (Reuters) – USA Alphabet’s ( GOOGL.O ) Department of Justice Googlevs. may help competitors and websites selling ad space, but it creates an uncertain future for advertisers themselves. Reuters.
of the Department of Justice on Tuesday GoogleComplaint against the company Google Among other things, Ads Manager called for the abandonment of a toolkit that allows websites to post ad space for sale and a toolkit that serves as an ad marketplace that automatically matches advertisers with those publishers.
Neil Begley of Moody’s Investors Service said that if the Justice Department’s suit succeeds, “advertisers and publishers could gain more leverage with more choices and, ultimately, more competition with expanding players.”
Brian Mandelbaum, CEO of ad tech company Attain, said the nascent ad business, which has been steadily growing and touted as privacy-focused Apple Inc ( AAPL.O ) could be a winner if Google ads become less effective.
Advertising industry executives say the business of placing ads on websites it doesn’t own gives Google valuable information about ad effectiveness.
According to him, Apple “has the potential to become the new dominant force” in advertising because Apple has data through ownership of phones, the distribution of apps through the Safari web browser and the App Store.
Paul Bannister, chief strategist at CafeMedia, said Google’s competitors in ad tech, which helps small and medium-sized businesses, are increasingly both news sites, but also create products that serve publishers who sell ad space and advertisers who currently buy ads, such as Google. size publishers sell advertising space.
Bannister said if Google is forced to abandon tools that serve publishers, it will benefit rivals such as Microsoft ( MSFT.O )-owned Xandr, which will work with both sides of the ad-buying ecosystem.
With more options besides Google, publishers will have more transparency about how much they can sell ad space for, Mandelbaum said, and ultimately pay less in fees.
If successful, Paul Gallant, managing director of the Cowen Washington Research Group, court It could be “the beginning of serious business model changes for Google.”
The divested assets could result in Google losing key data that helps target ads to relevant consumers, he said.
Nikhil Lai, senior analyst at research firm Forrester, said if Google loses access to data signals, advertisers may find their Google ads less effective.
At least twice before, the government against the dominant companies court filed a lawsuit and obtained extensive results. which broke up AT&T, which opened in 1974 court lawsuit resulted in a 1982 settlement of the company’s dissolution. This breakdown brought a number of innovations to the phone.
A Justice Department lawsuit against Microsoft in 1998 shut down the company as it tried to expand its dominant operating system into an Internet browser. Although the lawsuit was settled, the fight is credited with paving the way for other Internet innovators like Google itself.
Reporting by Sheila Dang and Diane Bartz Editing by Nick Zieminski
Our standards: Thomson Reuters Trust Principles.
Diane Bartz
2023-01-27 13:29:35
Source – reuters
Translation“24 HOURS”