The Big Story
Google’s Ad Business Declared a Monopoly: What It Means for the Digital World
In a highly anticipated court decision, Google has been declared a monopoly in parts of its ad business. This long-awaited ruling will surely make its mark on the future of online advertising. The U.S. government, along with 17 states, accused Google of using its power to control key tools in the digital advertising world, making it harder for other companies to compete.
This case centers on three main tools that give Google control over the digital ad space:
- Google Ad Manager (formerly DoubleClick for Publishers) helps websites manage and sell ad space.
- Google AdX (Google Ad Exchange) is where real-time auctions for ad space happen.
- Google Ads (formerly AdWords) is the platform where advertisers create ads and choose where they’ll run them. While it wasn’t the main focus of the case, Google’s control of Ad Manager and AdX meant that advertisers had limited options and were often forced to rely on Google’s tools.
The court found that Google’s integration of Google Ad Manager and Google AdX gave it unfair advantages, forcing websites to use Google’s entire system if they wanted access to advertisers. This restricted competition and made it pretty much impossible for other companies to compete in these areas.
Additionally, Google gave its own ad exchange special privileges, like getting a “first look” and “last look” at auction bids. Ultimately, this allowed Google to see auction results and would award itself placements, even when competitors offered more money.
While this ruling is a significant win for competitors, it’s far from the end of the story. Google has already announced plans to appeal the decision, which means the legal process could drag on for several years. As the appeal works its way through the courts, Google will likely continue to dominate much of the ad tech market.
However, if the ruling stands, it could lead to major changes in how Google operates within the digital advertising space. There have been rumors of potential remedial steps, like forcing Google to separate its ad server and ad exchange, preventing Google from steering ad sales to its own exchange. In turn, this would create more competition, giving publishers better prices for their ad space and offering advertisers more choices and potentially lower costs. Regulators are also aiming to require Google to run more open and transparent auctions, allow competitors fair access to its systems, and submit to independent audits to ensure compliance.
For advertisers, the impact of the case could be huge, but definitely not immediate. If the ruling leads to real changes, advertisers could benefit from a more open system with more competition, potentially lowering ad prices and giving them greater transparency into how auctions work and where their money goes. They might also gain more options outside of Google’s ecosystem to reach audiences. However, since Google plans to appeal, any real shifts in the ad landscape could take years to play out.
April Updates
The FTC Wants to Break Up Meta
The FTC’s high-profile antitrust trial against Meta has begun, marking the culmination of a six-year investigation into whether the social media giant violated competition laws by acquiring Instagram and WhatsApp. The FTC argues that these acquisitions were part of a strategy to eliminate competition and maintain monopoly power over the social media market, a tactic they claim Meta has used to avoid fair competition. If the FTC wins, Meta could be forced to spin off Instagram and WhatsApp, potentially reshaping the social media landscape. However, Meta counters that the acquisitions were legitimate and that the market has evolved, with platforms like TikTok and X providing fierce competition. The trial could have major implications for Meta’s advertising empire, which relies heavily on the integration of its services, and may spark a more competitive market, though Meta argues it could ultimately harm users by fragmenting services that have been deeply integrated.
After a round of testing, Meta has officially begun the global rollout of ads on Threads, its Twitter-reminiscent social platform that now reaches over 300 million monthly active users. Ads will appear between posts in the Threads feed, with placement automatically included in new campaigns using Meta’s Advantage+ or manual settings unless advertisers opt out. This expansion reflects Meta’s momentum of turning Threads into a viable channel for advertisers. Brands already advertising on Facebook or Instagram are able to easily extend their reach with minimal effort, tapping into a vast, text-focused audience. Meta has also implemented its brand safety standards to address advertiser concerns. As Thread continues to mature, it has the potential to develop into both a new revenue stream for Meta and a valuable new space for advertisers to reach engaged audiences.
YouTube Tests AI Overviews in Search Results
YouTube is testing AI Overviews, a new feature that pulls highlights from videos into a carousel at the top of search results. For now, it’s limited to some English-language searches and a small group of U.S. YouTube Premium users. The goal is to help users find answers faster for things, like product research and travel tips. However, brands and creators are concerned that summarizing content this way could reduce video views and visibility, similar to the impact Google’s AI Overviews have had on website traffic. YouTube will gather feedback during the test before deciding on a full rollout, and the outcome could potentially shift strategies for brands and creators.
President Trump has granted TikTok a second 75-day extension to comply with a law requiring the sale of its U.S. operations or face a ban. ByteDance, TikTok’s parent company, is still in negotiations but has not finalized a deal. New tariffs on Chinese goods have complicated discussions, with China pushing back against approving any sale. Several buyers, including Amazon, Oracle, and venture groups, are competing to acquire the platform. Trump has said he hopes to finalize an agreement that protects national security and keeps TikTok operating in the U.S. soon.
LinkedIn is stepping up its connected TV (CTV) ad offerings with new placements designed to help B2B marketers reach users beyond their LinkedIn feeds. Through LinkedIn’s campaign manager, advertisers can now buy ad inventory from major streaming platforms like Roku, Samsung, Paramount, and NBCUniversal. Using LinkedIn’s professional member data, brands can target specific job titles and companies, engaging audiences with more creative, awareness-driven content throughout their day. According to LinkedIn, the goal of this is to help brands raise awareness earlier on in the buyer’s journey, especially for products that require longer consideration, like IT services and financial solutions. To measure success, LinkedIn will track engagement levels on LinkedIn campaigns targeting audiences exposed to the CTV ads compared to those who were not. The platform also plans to work with measurement and verification partners to report on key metrics like reach and frequency. Despite LinkedIn’s higher costs to reach key decision-makers, this could be a smart test for businesses looking for more creative ways to connect with the right, qualified people
T-Mobile Adds Blis to it’s Advertising Arsenal
T-Mobile has been expanding its advertising arsenal through recent acquisitions, including the $175 million purchase of Blis, a UK-based ad tech startup, and the $600 million acquisition of Vistar Media. These moves strengthen the telecom giant’s position in the digital-out of-home (DOOH) advertising market, especially when combined with their ginormous database of over 127.6 million connections. This acquisition highlights T-Mobile’s ongoing focus on ad-funded operations, setting it apart as one of the few telecom companies still actively pursuing media acquisitions.
