What Google's Antitrust Verdict Means for Middle-Market Brands (Hint: Keep Calm and Advertise On)

What Google's Antitrust Verdict Means for Middle-Market Brands (Hint: Keep Calm and Advertise On)

Big news hit the digital advertising world yesterday while I was on stage at the Digital Summit in Chicago, speaking about Connected TV.  U.S. District Court Judge Leonie Brinkema found Google guilty of monopolizing two key segments of the online advertising market. After months of speculation and a seemingly interminable wait for the verdict, we finally have an answer – at least part of one.

Breaking Down the Verdict

Judge Brinkema determined that Google violated Section 2 of the Sherman Act by "willfully acquiring and maintaining monopoly power in the open web display publisher ad server market and the open-web display ad exchange market." In plain English, Google has been operating a monopoly in two critical areas of the ad tech stack that publishers rely on to monetize their content.

The judge also found that Google unlawfully tied its publisher ad server (DoubleClick for Publishers) with its ad exchange (AdX). This is significant because it confirms what many of us in the industry have observed for years – Google has been leveraging its dominance in one area to maintain control in another.

It wasn't a complete loss for the tech giant, though. The government failed to convince the judge that Google monopolized the market for open web display advertiser ad networks. As Google's VP of Regulatory Affairs stated, "We won half of this case and we will appeal the other half."

What This Means for Middle-Market Digital Advertisers

If you're a middle-market brand running Google advertising campaigns, you're probably wondering: "Do I need to overhaul my digital strategy immediately?" The short answer is no.

Here's why I'm advising our clients to stay the course – for now:

1. The appeals process will take years. Google has already announced its intention to appeal. Legal proceedings of this magnitude typically stretch out over multiple years before a final resolution.

   
   

2. Remedies haven't been determined yet. While the DOJ is pushing for both structural remedies (potentially forcing Google to divest some of its ad tech assets) and behavioral remedies (prohibiting self-preferencing), the court still needs to determine the appropriate consequences. This process alone could take considerable time.

   
   

3. Immediate disruption is unlikely. Even when remedies are determined, Google will likely have a significant runway to implement any required changes. The digital advertising ecosystem won't transform overnight.

   
   

That said, this verdict is a watershed moment in digital advertising. It marks the most significant antitrust action against a tech giant's advertising business in the digital era, and the ramifications will eventually be felt across the industry.

Staying Alert While Staying the Course

While I don't recommend making drastic changes to your digital advertising strategy right now, this is definitely the time to:

1. Stay informed. Keep an eye on developments in this case, particularly as the remedies phase unfolds. Understanding the potential changes to Google's business model will help you prepare for eventual shifts in the advertising landscape.

   
   

2. Track platform changes closely. Google may proactively make adjustments to its platforms in an attempt to address some of the court's concerns or position itself better for the appeals process. These changes could impact your campaigns, so vigilance is key.

   
   

3. Begin exploring diversification. While you don't need to abandon Google advertising, now is an excellent time to test and learn on other platforms. Building expertise across multiple channels will serve your brand well regardless of how this situation unfolds.

   
   

4. Audit your agency partnerships. Does your agency have the expertise to navigate potential changes in the ad tech ecosystem? Many agencies have built their businesses around Google's platforms, and not all will adapt equally well to a more diversified landscape. 

   
   

The industry has weathered significant changes before – from the rise of programmatic to the shift to mobile to the current push for privacy. Each transformation has created both winners and losers. The brands that thrive tend to be those that stay informed, adapt gradually, and maintain focus on their core marketing objectives rather than getting distracted by industry drama. 

Sean Sweeney

Founder & CEO

First Position Digital