Connect with us

Tech

Google’s alleged plan to hunt down the online advertising market

Published

on

 


In 2010, a Google Product Manager named Scott Spencer interviewed and explained that Google is using a second-price auction to place ads across the web. In the second price auction, the highest bidder wins, but you have to pay whatever the second highest bid is. Economists love this setup. It’s the man who theorized that he won the Nobel Prize to encourage participants to bid on really valuable items without worrying about overpayment. As Spencer explained, it minimizes the need to game the system.

But what if Google is playing a system game?

It is an accusation filed in an antitrust proceeding filed by a state coalition led by Texas Attorney General Ken Paxton. On Friday morning, a federal judge released an unedited version of the latest complaint in the case, first filed in 2020. This document provides inside information on how Google allegedly misleads advertisers and publishers over the years. Google’s public claim about the second price auction wasn’t true, as an employee put it in a newly published internal document.

The Texas lawsuit, one of the few cases the company is facing, aims to help Google dominate the auction-driven display advertising market. Google has complete control over all links in the chain between the advertiser and the audience. We own the largest buyer platform, the largest advertising exchange, and the largest publisher platform. Therefore, when an ad appears on a website, the advertiser used Google to place the ad, Google Exchange sent the ad to the site, and the site used Google to make space available. There is no doubt. That is, Google runs the auction on behalf of both the buyer and seller of the auction.

This shows a clear conflict of interest. As cited in a previously unsealed version of the proceedings, as one employee said, the analogy is when Goldman or Citibank owns the New York Stock Exchange. According to Texas, Google couldn’t resist the temptation to take advantage of market power for its own benefit. The proceedings accuse it of deploying at least three programs secretly designed to distort the expected second-price auction. The existence of these programs has already been published, but the newly unedited complaints provide new details on how they work.

The first program launched in 2013 was a strangely named project Bernanke, like Ben Bernanke of the former Federal Reserve Board. The Texas internal Google Docs describes how this worked. Suppose the highest bid made through AdX and Google’s ad exchange was $ 10 and the second highest bid was $ 8. In that case, the advertiser who bids for $ 10 will have to win the auction and pay the publisher $ 8. However, under project Bernanke, Google is said to instead charge the advertiser $ 8, while paying the publisher even though the third highest bid is $ 5.

What happened to the $ 3 difference? According to the complaint, Google sucked it up to Bernan Kipur, which was using it to take advantage of its own ad-buying tool, Google Ads. Filing cites a 2014 internal document explaining the need to reverse the 2013 trend that Google employees are concerned about. A rival ad buying platform has won too many auctions with AdX. According to complaints, Google used the money in the pool to boost lower bids than bids made through other platforms. (This may explain why the program was named after Bernanke, who promoted quantitative easing. It sends money to the economy to fight the Great Recession. An internal Google slide shows quantitative easing. Uses the phrase.) Repay them with the publisher in the end. However, according to complaints, newer versions of the program have even stopped doing that.

Sources

1/ https://Google.com/

2/ https://www.wired.com/story/google-antitrust-ad-market-lawsuit/

The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

ExBUlletin

to request, modification Contact us at Here or [email protected]