Why you should care about the Google ad tech trial

24th September 2024

By Luke Brown

As Australia’s marketing industry watches closely, the ongoing Google ad tech trial in the United States could become a watershed moment for digital advertising worldwide. This trial, which challenges Google’s dominance in the ad tech space, isn’t just a legal showdown — It’s a battle that could reshape the very foundations of how digital advertising works. For marketers in Australia, this case carries implications that extend far beyond borders, influencing how we plan, execute, and measure our campaigns in the years to come.

The trial’s impact: More than just Google’s business model

The trial revolves around allegations that Google has used its market power to stifle competition, maintain a monopoly in ad tech, and disadvantage advertisers, publishers, and rivals alike. While the courtroom drama might seem far removed from the day-to-day realities of running campaigns, the outcomes could bring sweeping changes to our industry, altering the dynamics of ad pricing, access to data, and the tools we use.

In the words of Dina Srinivasan, a noted antitrust scholar who has been following the case closely, “This trial is not just about Google; it’s about the future of the internet. The outcome could redefine the rules of digital advertising, creating a more competitive landscape that benefits everyone from publishers to small businesses”.

Here’s what Australian marketers should be paying attention to as the trial unfolds:

1. Increased scrutiny on data practices and privacy

One of the most significant elements of the trial is its spotlight on data privacy and the competitive advantage gained through vast, monopolistic data collection. Google’s access to massive amounts of user data underpins its dominance in the ad tech ecosystem, enabling precise targeting that other platforms struggle to match.

For Australian marketers, this trial could foreshadow stricter regulations on data collection and usage, aligning with the global trend towards greater consumer privacy protections. As we prepare for Australia’s own privacy law reforms, it’s essential to consider how future rulings could limit data access and demand more transparency from ad tech players, forcing brands to rethink how they gather and leverage consumer insights.

2. Potential breakup of Google’s ad tech stack

A core argument in the trial is that Google’s control over both the buy and sell sides of digital advertising constitutes an unfair advantage. If regulators decide that Google’s ad tech stack needs to be broken up, it could open the market to more competition, potentially leading to a more level playing field for advertisers and publishers.

This would be a game-changer for Australian marketers, who have long relied on Google’s suite of tools for campaign execution. More competition could lead to innovative alternatives that offer better pricing, transparency, and more control over ad placements. However, it could also mean that brands and agencies will need to adapt quickly to new tools and platforms, creating both challenges and opportunities in the process.

3. Implications for ad pricing and transparency

One of the ongoing frustrations with the current ad tech landscape is the lack of transparency around pricing. Google’s role as both a player and referee in digital ad auctions has led to concerns about inflated prices and unclear costs. The trial could push for greater transparency in the ad bidding process, giving advertisers more clarity on where their dollars are going and why.

For Australian advertisers, this could be a welcome shift. A more transparent ad market would allow brands to make more informed decisions about media spend, optimise campaigns with greater accuracy, and ultimately, drive better ROI. Marketers need to be prepared to adapt their strategies to potentially new auction dynamics and be ready to leverage new platforms that prioritise transparency.

4. Shifts in market power and the rise of new platforms

Should the trial result in restrictions on Google’s operations, it could catalyse the rise of alternative ad tech platforms. This is a moment where innovation could thrive, and we might see new entrants challenging the status quo, much like TikTok did in the social media space. Emerging players could offer fresh approaches to targeting, measurement, and creative execution, creating new opportunities for brands looking to diversify their digital ad spend.

For marketers in Australia, this means staying vigilant and open to testing new platforms as they come to market. Diversification could become a key strategy, ensuring that brands are not overly reliant on a single tech giant and are well-positioned to pivot in a rapidly changing landscape.

5. The evolving role of marketing companies in a post-trial world

Finally, the trial could redefine the role of agencies in the ad tech ecosystem. As the industry adapts to potential changes, agencies and businesses will need to guide their clients through new complexities, from managing diversified tech stacks to navigating evolving privacy regulations. At AFFINITY, we see this as an opportunity to double down on our role as trusted advisors, providing the insights and support brands need to navigate these uncharted waters.

Preparing for a new digital advertising landscape

The Google ad tech trial is far more than a legal battle — it’s a signal of broader shifts in the digital advertising landscape that will impact marketers around the globe, including here in Australia. As Srinivasan aptly put it, “This is a defining moment for digital advertising, and its effects will ripple across every market where Google operates”. While the outcomes remain uncertain, one thing is clear: the days of business as usual in digital advertising are numbered.

Now is the time for marketers to stay informed, agile, and ready to adapt to whatever comes next. Whether its embracing new technologies, diversifying ad spend, or doubling down on privacy-first strategies, being proactive will be key.

At AFFINITY, we’re closely watching these developments, ready to leverage business advantage and lead our clients through the changes ahead. Because in the fast-evolving world of digital advertising, staying ahead of the curve isn’t just about being informed — it’s about actively seeking opportunities for growth.

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