4 October 2023

Digital Technology Guru

Digital Technology Guru Reviews

Google Admits Worries About Losing Market Share to Competitors like TikTok and Amazon

2 min read
Google Admits Worries About Losing Market Share to Competitors like TikTok and Amazon

During the federal antitrust trial against Google, Jerry Dischler, the vice president for Google’s advertising products, testified that the company is concerned about losing market share to competitors such as TikTok and Amazon. Dischler stated that Google search ads are not essential for all advertisers, admitting that they are losing share to new entrants in the digital advertising market. The Justice Department has accused Google of maintaining an illegal monopoly over online search paying billions of dollars to web browsers and smartphone manufacturers to ensure it remains the default option for users.

About two-thirds of Google’s total revenue comes from search ads, amounting to over $100 billion in 2020. However, recent changes in the advertising landscape, including Apple’s privacy policy updates, have presented an opportunity for major competitors like Amazon to gain ground. Dischler revealed that some consumer goods makers have threatened to move their advertising spending from Google to Amazon, and that Amazon is currently larger than Google in retail advertising and growing at a faster rate.

Dischler’s testimony also exposed how Google frequently makes changes to its advertising auctions without notifying advertisers. These changes can lead to increased ad prices, and Dischler admitted that Google does not inform advertisers of pricing adjustments. Despite this, Dischler emphasized that Google’s goal is to meet revenue targets and that financial compensation does not impact the quality of search results.

The trial is ongoing, and the outcome could have significant implications for Google’s dominance in the digital advertising market.

– Bloomberg: [insert source link]