{"id":21536,"date":"2024-09-16T22:13:47","date_gmt":"2024-09-16T22:13:47","guid":{"rendered":"https:\/\/mysourcefunding.com\/?p=21536"},"modified":"2024-09-16T22:13:47","modified_gmt":"2024-09-16T22:13:47","slug":"google-impossible-to-negotiate-with-former-news-corp-exec-testifies-in-doj-trial","status":"publish","type":"post","link":"https:\/\/mysourcefunding.com\/?p=21536","title":{"rendered":"Google \u2018impossible to negotiate with,\u2019 former News Corp exec testifies in DOJ trial"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">\u201cIt\u2019s the computer that figures it out.\u201d<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">That\u2019s US District Court Judge Leonie M. Brinkema, 80, succinctly explaining how an ad exchange manages the frequency caps of a programmatic ad campaign. Heady stuff, but at least by Day 2 of the Department of Justice\u2019s antitrust case against Google, Judge Brinkema\u2019s questions and statements, like asking on Monday whether an ad auction functions like Sotheby\u2019s, have been direct and to the point. She has seemed to navigate the jargon and complexity of the ad market\u2014a market that she could fundamentally alter at the end of this trial\u2014with ease.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">After the first day focused on publishers and competition, the second day of the trial was also not kind to Google\u2019s publisher ad tech. Stephanie Layser, who oversaw the programmatic business at News Corp and now works at Amazon Web Services, described Google\u2019s ad server for publishers, formerly known as DFP, as \u201cslow and clunky\u201d from the witness stand. Eisar Lipkovitz, a former Google VP of engineering on display and video ads who left the company in 2019 after nearly 15 years, described the team working on DFP as \u201clazy and slow in terms of innovation\u201d in a video deposition that was played in the courtroom.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">The point of it all?<strong> <\/strong>To illustrate that, despite industry complaints about the technology, Google\u2019s ad server has an enormous percentage of market share. Layser testified that when News Corp tried to find a different ad server in 2017, it determined that losing Google\u2019s advertisers could have cost the publisher at least $9 million in ad revenue that year alone.<\/p>\n<ul>\n<li>AdX, Google\u2019s ad exchange, which is exclusive to Google\u2019s ad server, accounted for 52.7% of News Corp\u2019s programmatic revenue in 2016, or roughly $43.9 million, she said.<\/li>\n<\/ul>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">It was \u201cimpossible to negotiate with Google,\u201d Layser said.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">Jay Friedman, CEO of the marketing agency Goodway Group, told the court that his agency tried to negotiate with Google over AdX\u2019s take rate, which he said was higher than the competition but provided the same quality of advertisers. It was denied, he said.<\/p>\n<div class=\"style__InlineSubscribeWrapper-sc-f998fa3-1 eLdHEA inline-subscribe\">\n<div id=\"inline-subscribe\" class=\"style__Container-sc-6fdcc87e-0 style__RoundedContainer-sc-fdc976c-0 iTWzCH dtoEFc\">\n<h5 class=\"dist__StyledText-sc-9c73a528-12 hxLtlS inline-subscribe\">Get marketing news you&#8217;ll actually want to read<\/h5>\n<p class=\"dist__StyledText-sc-9c73a528-12 lkyzwa inline-subscribe\">Marketing Brew informs marketing pros of the latest on brand strategy, social media, and ad tech via our weekday newsletter, virtual events, marketing conferences, and digital guides.<\/p>\n<\/div>\n<\/div>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">Friedman spent much of his testimony explaining the differences between walled gardens and the open internet, as well as why advertisers view display advertising and social media advertising differently. His distinction, he said: A Ramada Inn and a Ritz-Carlton are both hotels, but they serve different purposes.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">As Marketing Brew previously noted, the DOJ and Google have competing definitions of what constitutes an online ad.<\/p>\n<ul>\n<li>As Layser explained, publishers like the Wall Street Journal can\u2019t sell their ads on servers built for platforms like TikTok, even if Google considers that platform to be competition.<\/li>\n<\/ul>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">At one point, Judge Brinkema asked Layser if publishers \u201cwanted access to the largest demand of advertisers, but didn\u2019t want to go through the \u2018system\u2019 to get it,\u201d to which Layser replied \u201cyes.\u201d<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">Lipkovitz, whose deposition was heard last on Tuesday, said that he raised questions around Google\u2019s exclusivity agreements, and noted that Google limited the ability for publishers to set price controls within AdX.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">\u201cI don\u2019t think you win trust with customers by telling them what they can\u2019t do,\u201d he said.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">Lipkovitz was also asked about Project Poirot, a Google initiative that the DOJ has alleged lowered bids sent from Google\u2019s DSP to rival exchanges so its own exchange would win. Lipkovitz testified that this was the goal of the project, \u201cnot a side effect.\u201d<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">Side note: one internal Google document that Lipkovitz read mentions a strategy to \u201cdrain the swamp,\u201d apparently referring to \u201cSSPs that don\u2019t actually add value,\u201d Lipkovitz said. Many in the courtroom laughed out loud.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">And when he attempted to tackle these issues, Lipkovitz said his questions weren\u2019t answered.<\/p>\n<p class=\"dist__StyledText-sc-9c73a528-12 brYTDW\">\u201cThe machine won,\u201d he said.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketingbrew.com\/stories\/2024\/09\/10\/google-doj-antitrust-trial-day-two-publishers-ad-serve?utm_source=&#038;utm_medium=syndication&#038;utm_campaign=feed\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIt\u2019s the computer that figures it out.\u201d That\u2019s US District Court Judge Leonie M. Brinkema, 80, succinctly explaining how an ad exchange manages the frequency caps of a programmatic ad campaign. Heady stuff, but at least by Day 2 of the Department of Justice\u2019s antitrust case against Google, Judge Brinkema\u2019s questions and statements, like asking [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21537,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[78],"tags":[],"class_list":{"0":"post-21536","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-marketing"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Google \u2018impossible to negotiate with,\u2019 former News Corp exec testifies in DOJ trial | Brandiary<\/title>\n<meta name=\"description\" content=\"\u201cIt\u2019s the computer that figures it out.\u201dThat\u2019s US District Court Judge Leonie M. 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