←back to thread

863 points IdealeZahlen | 1 comments | | HN request time: 0s | source
Show context
megaman821 ◴[] No.43718617[source]
I don't think this article explains it well. Google sells ad space on behalf of the publishers and also sells the ads on behalf of the advertisers. It also runs the auction that places the ads into the ad space. See this graphic https://images.app.goo.gl/ADx5xrAnWNicgoFu7. Parts of this can definately be broken up without destroying Google.
replies(19): >>43718672 #>>43718693 #>>43718751 #>>43718794 #>>43718938 #>>43719033 #>>43719196 #>>43719219 #>>43719246 #>>43719395 #>>43719429 #>>43719463 #>>43720402 #>>43720461 #>>43720510 #>>43721628 #>>43722559 #>>43723479 #>>43724604 #
crowcroft ◴[] No.43719395[source]
When a media buyer puts $1.00 in on one side of the system, on average only $0.60 makes it to the publisher. In some cases less than $0.50 gets to them.

Advertising is an intentionally complex system so that companies can clip the ticket at multiple stages throughout the process. Google should be broken up, but the whole ad tech system needs to go into the bin if these problems are going to ever get fixed.

https://www.forbes.com/sites/augustinefou/2021/02/15/how-muc...

replies(4): >>43719494 #>>43719973 #>>43720688 #>>43724612 #
aiauthoritydev ◴[] No.43719973[source]
As someone who has worked in AdTech I would respectfully disagree. It is indeed complex but it is incredibly efficient. Also it is irrelevant of whether publisher earns 75% or 30% of the total revenue. What matters is how much they are earning compared to the next best alternative.

Some companies like Google are incredible at this. Google is not a "monopoly" in this space. In fact the world has far too many Google equivalents but absolutely no one comes close to Google in generating top dollars for publishers. I am saying this after working for 10+ years competing against Google.

replies(11): >>43720020 #>>43720098 #>>43720244 #>>43720256 #>>43720282 #>>43720308 #>>43721019 #>>43721231 #>>43721424 #>>43725204 #>>43725868 #
whiplash451 ◴[] No.43720282[source]
> the world has far too many Google equivalents

No it doesn't. As explained by the parent, Google is in a unique position w.r.t to the publishers, the sellers and the bidders.

There's a ton of very talented adtech companies out there, but they only get to play an unfair game.

replies(1): >>43725004 #
1. zombiwoof ◴[] No.43725004{3}[source]
I worked at Google on Adtech. I can tell you everybody knew it was an unfair game and illegal.

Lots of unrecorded meetings and “no notes taken” sessions