Is it impossible to run a company without buying advertising from Google?

Lyft Inc., the ride-hailing company, spent $92.4 million on Google advertising last year, more than double the amount of two years earlier. That was …

Google controls many of the ways businesses access customers online in the U.S., making it almost impossible to run a company without buying advertising from the internet giant.

As politicians increase scrutiny of large technology companies, Google’s lock on these digital relationships is becoming a potential liability, not just a lucrative advantage praised each quarter by Wall Street analysts.

Presidential candidate and Senator Elizabeth Warren outlined a proposal Friday for breaking up Alphabet Inc.’s Google — and Facebook Inc. and Amazon.com Inc. — because they have “too much power” and have “bulldozed competition.”

While consumers pay nothing for most Google services, some businesses say they often can’t avoid giving more money to the company because the internet giant is the main source of answers when Americans go online to get information. Google has more than 81 percent of the mobile search market, according to research firm NetMarketShare.

While Facebook matches advertisers with people interested in certain topics, Google can tell what a person really wants, right as that person types their query into the search bar. Showing up at the top of search results is imperative for most companies and in recent years Google has changed its software, especially on smartphones, to make buying ads the best way to achieve that goal.

It’s not possible to run a business without advertising on Google, according to Joey Levin, chief executive officer of IAC/InterActive Corp., which owns internet services like Tinder, HomeAdvisor and Vimeo. He spends about $350 million on advertising every quarter, much of that on Google.

Lyft Inc., the ride-hailing company, spent $92.4 million on Google advertising last year, more than double the amount of two years earlier. That was about 10 percent of its $991 million loss in 2018.

“Google has dominance in search, it’s utterly, completely, dominant,” said Brian Wieser, president of business intelligence for GroupM, the media investment management arm of advertising giant WPP Plc.

The Federal Trade Commission closed an antitrust investigation into Google in 2013 but there’s been a rising chorus of voices on the political left and right demanding Google be cut down to size, somehow.

Nowhere is Google’s power more pervasive — and potentially damaging to businesses — than in the esoteric market for “branded keywords.” This is where businesses buy ads based on their brand names. So Lyft bids on the word “Lyft” and when people search for that, Google runs an ad at the top of results usually linking to the ride-sharing company’s website.

Some businesses say that they have to buy these ads — whatever the cost — because rivals can bid on the keywords too. If Lyft doesn’t pay up, Uber Technologies Inc. is ready to pay Google instead and grab customers. A search for “Lyft” on Friday on a Google Pixel smartphone showed an ad at the top from the company. Right underneath, there was an ad from Uber saying “Your Ride is A Tap Away.”

“You have you buy the ads every day,” said Mike Lindell, CEO of MyPillow Inc., which sells bedroom items online. “Google gets a piece of every single MyPillow sold and it’s wrong. Why should someone be able to bid on your own brand words and why do you have to buy your own just so people can see you online? That’s wrong.”

In recent years, this pressure has increased because on mobile devices Google search ads show up at the top of the results, rather than on the side of the page with desktop results. This means people are more likely to click on the ads, rather than the free, “organic” links to companies’ websites.

MyPillow’s marketing team has tested not buying Google search ads for “MyPillow,” and the slot is immediately purchased by other businesses, sometimes selling knock-offs on e-commerce marketplaces like Amazon, Lindell said. “We’ve had to bid more to get back on there after we stopped,” he added.

“Limiting the ability to advertise around brand names would restrict competition and make it harder for people searching for one brand of product to make informed decisions by comparing features and prices,” a Google spokesman wrote in an email.

The company has said in the past that it doesn’t break antitrust laws and that competition online is just a click away. Google also regularly stresses that it never accepts payments to be included in or to be ranked higher in organic search results, and doesn’t manipulate search rankings to benefit advertisers.

American Airlines Group Inc. and Rosetta Stone Inc. sued Google years ago over selling their brand names in search ads, arguing the internet giant shouldn’t be allowed to use protected trademarks in this way. Rosetta, a language learning technology provider, lost its case in state court, but it was revived on appeal and Google settled in 2010 for an undisclosed sum, according to Ars Technica.

More recently, companies have tried to work with — or around — Google’s system. Online travel agent TravelPass Group sued a group of leading hotel chains late last year alleging they conspired not to bid on each others’ branded keywords, according to the complaint. The hotels are fighting the suit and the case is ongoing.

Beyond just branded keywords, the cost of all types of Google search ads has been rising at about 5 percent a year, according to Mark Ballard, vice president of research at Merkle, an agency that helps retailers and other companies buy Google ads. That’s well ahead of U.S. inflation, which is running at 1.6 percent currently, according to data compiled by Bloomberg.

Google search ad prices often surge when the company restricts the growth of supply, and they fall when Google dramatically increases inventory — a sign of strong pricing power. The cost for Google U.S. search ads jumped 13 percent in the first quarter of 2018 and 12 percent in the second quarter as the growth in the number of clicks declined, according to Merkle data.

Many Google advertisers are happy to pay more because the company has so much data that it can target the marketing messages and generate big returns on that spending, said Ballard.

“To the extent that Google has close to a monopoly on this area, they can’t force advertisers to pay more than makes sense,” he added. “Prices have risen, but returns are higher.”

Where that breaks down is in the branded keyword market, Ballard said.

“When it comes to brand keywords, some advertisers will spend beyond what makes sense. These decisions are not as rational,” he added. “That’s a question that comes up when advertisers see costs go up. People are thinking about that and testing it by stopping buying those branded keywords to see what happens.”

Those tests usually result in a decline in traffic, both from search ads and from free, or organic, results, according to Ballard. How big depends on the advertiser. “If you’re a well-known company with a unique name, you will capture organic traffic without buying your own brand keyword on Google,” he said.

For everyone else, they must continue to pay Google.


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Google search dominance has businesses paying for their brand name

Lyft, the ride-hailing company, spent $92.4 million on Google advertising last year, more than double the amount of two years earlier. That was about …

Google controls many of the ways businesses access customers online in the US, making it almost impossible to run a company without buying advertising from the internet giant.

As politicians increase scrutiny of large technology companies, Google’s lock on these digital relationships is becoming a potential liability, not just a lucrative advantage praised each quarter by Wall Street analysts.

Presidential candidate and Senator Elizabeth Warren outlined a proposal Friday for breaking up Alphabet’s Google — and Facebook and Amazon.com — because they have “too much power” and have “bulldozed competition”.

While consumers pay nothing for most Google services, some businesses say they often can’t avoid giving more money to the company because the internet giant is the main source of answers when Americans go online to get information. Google has more than 81 per cent of the mobile search market, according to research firm NetMarketShare.

While Facebook matches advertisers with people interested in certain topics, Google can tell what a person really wants, right as that person types their query into the search bar. Showing up at the top of search results is imperative for most companies and in recent years Google has changed its software, especially on smartphones, to make buying ads the best way to achieve that goal.

It’s not possible to run a business without advertising on Google, according to Joey Levin, chief executive officer of IAC/InterActive, which owns internet services like Tinder, HomeAdvisor and Vimeo. He spends about $350 million on advertising every quarter, much of that on Google.

Lyft, the ride-hailing company, spent $92.4 million on Google advertising last year, more than double the amount of two years earlier. That was about 10 per cent of its $991 million loss in 2018.

“Google has dominance in search, it’s utterly, completely, dominant,” said Brian Wieser, president of business intelligence for GroupM, the media investment management arm of advertising giant WPP.

The Federal Trade Commission closed an antitrust investigation into Google in 2013 but there’s been a rising chorus of voices on the political left and right demanding Google be cut down to size, somehow. Nowhere is Google’s power more pervasive — and potentially damaging to businesses — than in the esoteric market for “branded keywords”. This is where businesses buy ads based on their brand names. So Lyft bids on the word “Lyft” and when people search for that, Google runs an ad at the top of results usually linking to the ride-sharing company’s website.

Some businesses say that they have to buy these ads — whatever the cost — because rivals can bid on the keywords too. If Lyft doesn’t pay up, Uber Technologies is ready to pay Google instead and grab customers. A search for “Lyft” on Friday on a Google Pixel smartphone showed an ad at the top from the company. Right underneath, there was an ad from Uber saying “Your Ride is A Tap Away”.

“Google gets a piece of every single MyPillow sold and it’s wrong. Why should someone be able to bid on your own brand words and why do you have to buy your own just so people can see you online? That’s wrong,” said Mike Lindell, CEO of MyPillow, which sells bedroom items online.

In recent years, this pressure has increased because on mobile devices Google search ads show up at the top of the results, rather than on the side of the page with desktop results. This means people are more likely to click on the ads, rather than the free, “organic” links to companies’ websites.

MyPillow’s marketing team has tested not buying Google search ads for “MyPillow”, and the slot is immediately purchased by other businesses, sometimes selling knock-offs on e-commerce marketplaces like Amazon, Lindell said. “We’ve had to bid more to get back on there after we stopped,” he added.

“Limiting the ability to advertise around brand names would restrict competition and make it harder for people searching for one brand of product to make informed decisions by comparing features and prices,” a Google spokesman wrote in an email.

The company has said in the past that it doesn’t break antitrust laws and that competition online is just a click away. Google also regularly stresses that it never accepts payments to be included in or to be ranked higher in organic search results, and doesn’t manipulate search rankings to benefit advertisers.

American Airlines Group and Rosetta Stone sued Google years ago over selling their brand names in search ads, arguing the internet giant shouldn’t be allowed to use protected trademarks in this way. Rosetta, a language learning technology provider, lost its case in state court, but it was revived on appeal and Google settled in 2010 for an undisclosed sum, according to Ars Technica.

More recently, companies have tried to work with — or around — Google’s system. Online travel agent TravelPass Group sued a group of leading hotel chains late last year alleging they conspired not to bid on each others’ branded keywords, according to the complaint.

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Programmatic Ads Market Is Booming Worldwide: Facebook Business, Adwords, Wordstream …

Top Companies in the Global Programmatic Ads Market: Facebook Business, Adwords, Wordstream, Sizmek, Marin Software, Dataxu, Yahoo Gemini, …

This press release was orginally distributed by SBWire

Harrisburg, NC — (SBWIRE) — 02/21/2019 — GLOBAL PROGRAMMATIC ADS MARKET SIZE, STATUS AND FORECAST 2019-2025

The report provides a unique tool for evaluating the Market, highlighting opportunities, and supporting strategic and tactical decision-making. This report recognizes that in this rapidly-evolving and competitive environment, up-to-date marketing information is essential to monitor performance and make critical decisions for growth and profitability. It provides information on trends and developments, and focuses on markets capacities and on the changing structure of the Programmatic Ads.

The report presents the market competitive landscape and a corresponding detailed analysis of the major vendor/key players in the market. Top Companies in the Global Programmatic Ads Market: Facebook Business, Adwords, Wordstream, Sizmek, Marin Software, Dataxu, Yahoo Gemini, Mediamath, Adobe Media Optimizer, Quantcast Advertise, Choozle, Acquisio, The Trade Desk, Flashtalking and others.

Click the link to get a free Sample Copy of the Report:

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GLOBAL PROGRAMMATIC ADS MARKET SPLIT BY PRODUCT TYPE AND APPLICATIONS:

This report segments the global Programmatic Ads market on the basis of Types are:

Programmatic RTB

Programmatic Direct

On the basis of Application, the Global Programmatic Ads market is segmented into:

Marketing and Advertising

Health, Wellness and Fitness

Construction

Others

REGIONAL ANALYSIS FOR PROGRAMMATIC ADS MARKET:

North America (United States, Canada and Mexico)

Europe (Germany, France, UK, Russia and Italy)

Asia-Pacific (China, Japan, Korea, India and Southeast Asia)

South America (Brazil, Argentina, Colombia etc.)

Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

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Search Advertising Software Market Is Emerging Technology and Innovations with WordStream …

Advertising, Bing Ads, Adobe Media Optimizer, Kenshoo Infinity Suite, Marin Software, DoubleClick Digital Marketing, Acquisio, Sizmek, IgnitionOne P.
Search Advertising Software Market

Search Advertising Software Market

Search advertising software, also referred to as paid search or search engine marketing (SEM) software, helps businesses advertise on search engines such as Google, Bing, and Yahoo!. Search advertising allows companies to target keywords that are relevant to their businesses and gain more prominent positioning in search engine results, gaining them visibility with users who are already searching for those keywords.

The research report of global Search Advertising Software market examines the current and futuristic development estimate of the market. This report offers a complete detail about the market which is extremely thrusting in the present market situation. The driving key factors and restraint are given which are capable for its progress and slowdown of the market too. The research study is an accumulation of primary and secondary research, which enables the players to have a robust understanding of the overall market.

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Top Vendors of Search Advertising Software Market:-

WordStream, AdWords, Kenshoo Infinity Suite, Marin Software, DoubleClick Digital Marketing, Acquisio, Bing Ads, Adobe Media Optimizer, Sizmek, Yahoo! Advertising, IgnitionOne Platform

Market segmented by Type :-

• Cloud-based

• On-premise

Market Segmented by Application :-

• Small Business

• Medium Business

• Large Enterprises

Search Advertising Software Market segment by Regions/Countries

• United States

• EU

• Japan

• China

• India

• Southeast Asia

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The new AI frontier: Hyperpersonalized automated advertising

Through the combination of big data and AI-powered predictive analytics, advertisers are now able to get a comprehensive profile of target customers …

Hyperpersonalized content

Advertisers know ads are most successful when they promote the right product at the right time to the right customer. However, getting the combination of product, timing, customer and channel correct is incredibly difficult. Advertisers have long sought after the goal of hyperpersonalization, where individual promotions can be tailored and targeted to individual people at the right time, in the right format and through the right channel that will meet an immediate need and result in a greater chance of conversion.

With traditional approaches to advertising — print ads, TV commercials or billboards — it’s impossible to create highly personalized ads, as the audience is bound to be relatively diverse. The advent of IoT and mobile technology, combined with big data gleaned from customer interactions, gives advertisers the opportunity to target their customers through incredibly personal and timely information about customer behaviors. Through the combination of big data and AI-powered predictive analytics, advertisers are now able to get a comprehensive profile of target customers to better understand their comprehensive buying behaviors and preferred channels of interaction.

AI monetizes the concept of hyperpersonalization. Using the aforementioned customer profile data alongside machine learning models trained on individual audience member’s behavior, AI technologies can create AI-enabled automated advertisements. With this robust profile data, advertisers are able to better understand the needs and wants of individual consumers, enabling them to get a more complete view of the customer or prospect.

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