News Corp (NWSA) considered moving away from Google’s (GOOGL) advertising tools in 2017 but estimated that doing so would cost the company at least $9 million in ad revenue, according to testimony from former executive Stephanie Layser at Google’s (GOOG) antitrust trial in Virginia. Layser, who worked in ad technology at News Corp from 2017 to 2022, described the challenges publishers faced when relying on Google’s ad server and ad exchange. She explained that while Google’s tools were frustrating to publishers, the company’s dominance in the market left few alternatives, as most ad transactions flowed through Google’s systems.
Layser’s testimony is part of the U.S. Department of Justice’s antitrust case against Google, which aims to prove that the company monopolized markets for publisher ad servers, advertiser ad networks, and the ad exchanges that connect them. News Corp's internal documents revealed that in 2016, more than half of the publisher’s $83.3 million in ad revenue came through Google’s ad exchange. The trial could lead to significant repercussions for Google, with prosecutors seeking to force the tech giant to sell off its Google Ad Manager platform.
Market Overview:- News Corp estimated a $9 million loss in ad revenue if it ditched Google’s ad tools in 2017.
- Google’s ad exchange handled over half of News Corp’s $83.3 million in ad revenue from 2016.
- The Department of Justice is pursuing antitrust claims that Google monopolized key markets in ad technology.
- Former News Corp executive testified about the publisher’s reliance on Google’s ad systems, despite concerns about the platform.
- The trial could result in Google being forced to divest parts of its ad technology business.
- Google argues that large publishers use multiple platforms for ad sales and that the industry is more competitive than depicted.
- The outcome of the trial could reshape the digital advertising landscape if Google is found to have monopolized key markets.
- News Corp and other publishers may gain more flexibility in their advertising choices if Google’s ad systems are broken up.
- Google’s defense hinges on convincing the court that the ad tech industry remains competitive despite its market dominance.
The trial against Google highlights the immense influence the tech giant holds over the digital advertising ecosystem. News Corp’s testimony underscores the difficult decisions publishers face when considering alternatives to Google’s ad tools, despite the high costs of remaining tied to Google’s systems. As the trial progresses, the stakes are high for both Google and the broader ad tech industry, with the potential for significant changes depending on the outcome.
With prosecutors seeking to force Google to divest parts of its ad business, the case represents a crucial moment in the ongoing battle to regulate Big Tech and ensure fair competition in digital markets.
