Google executive: quietly raised ad prices to increase search revenue

News from this site on September 19, as the U.S. Department of Justice v. Google antitrust trial enters its second week, the Department of Justice is paying attention to the real money-making tool behind Google search: advertising.

Prosecutors allege that Google’s monopoly position allows it to increase advertising prices at will without worrying about competition. s consequence. This accusation was supported in court by Jerry Dischler, executive vice president of Google Advertising. Dischler said Google would adjust its auction process, which could result in ad prices increasing by an average of 5% in the past and as much as 10% for some queries. Customers who buy ads are not aware of these price "adjustments," Dischler said: "We tend not to tell advertisers about price changes."

Raising ad prices is obvious was a way for Google to boost search revenue during periods of poor revenue, one of which appears to have occurred in 2019, according to an email between Dischler and another Google executive, Anil Sabhawal. spring. The email also mentioned other ways to boost revenue, including making the search service more visible to Chrome users.

Another trial exhibit showed that Google earned US$98 billion in revenue from search advertising on its own services in 2019 (Note from this site: currently approximately 714.42 billion yuan). Dischler said this number exceeded $100 billion in 2020 (currently about 729 billion yuan), with the vast majority of growth coming from mobile searches. Dischler told the court that price increases were capped at about 10% and that raising it to 15% was "a dangerous thing to do." Still, Dischler acknowledged that even if high prices drive some advertisers to competitors like Meta or TikTok, overall revenue will still likely increase, proving that Google can boost advertising with little competitive pressure. price, could help bolster the Justice Department's argument that Google maintains an illegal monopoly.

The trial is expected to last until November, with a verdict not expected until next year.

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