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Report: Google, Facebook Make Ad Firms Suffer On Dominating Digital Dollars

Search engines such as Google will lose some of their appeal for shopping as Amazon and other retail websites gain favour and advertiser dollars over the next few years

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Google probing 'malicious' attack on its internet traffic. Pixabay
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The dominance of Google and Facebook of digital advertising has led to the number of independent and smaller ad tech companies falling 21 per cent since 2013 to 185 in the second quarter of 2018, the media reported.

According to a report in The New York Times on Sunday, venture capital money going into ad-tech start-ups is falling sharply.

“Online advertising companies have struggled for several years as Google and Facebook solidified their grip on digital dollars, slowing revenue for the others,” added the report, citing global marketing research firms including LUMA Partners.

While spending for online ads was more than $88 billion last year, over 90 per cent of that went to Google or Facebook.

“Amazon is also making inroads into advertising, with a new advertising arm, raising the possibility that it will become a top competitor,” said the report.

The company generated $2.2 billion in revenue from its advertising business in the second quarter this year.

Facebook
While spending for online ads was more than $88 billion last year, over 90 per cent of that went to Google or Facebook. Pixabay

While Facebook had been predicting its ad revenue to decelerate in 2017, it actually saw a strong growth of 48.8 per cent.

According to a recent Forrester report, brands will invest 55 per cent more in digital marketing by 2023.

“Search engines such as Google will lose some of their appeal for shopping as Amazon and other retail websites gain favour and advertiser dollars over the next few years,” said Forrester.

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The move signifies a shift in the way consumer shopping habits continue to change as they are headed toward Amazon and retail websites for shopping and toward Google and Bing for answers to questions.

“The shift gives Amazon a reason to strengthen its search features — text and voice — for organic traffic, as well as its search advertising platform,” said the report. (IANS)

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Nigerian Firm Apologizes for Google’s Glitch

Main One, which describes itself as a leading provider of telecom and network services for businesses in West Africa, said that it had investigated the matter.

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Google, Main One
A Google logo is seen at the company's headquarters in Mountain View, California, VOA

Nigeria’s Main One Cable took responsibility Tuesday for a glitch that temporarily caused some Google global traffic to be misrouted through China, saying it accidentally caused the problem during a network
upgrade.

The issue surfaced Monday afternoon as internet monitoring firms ThousandEyes and BGPmon said some traffic to Alphabet’s Google had been routed through China and Russia, raising concerns that the communications had been intentionally hijacked.

Main One said in an email that it had caused a 74-minute glitch by misconfiguring a border gateway protocol filter used to route traffic across the internet. That resulted in some Google traffic being sent through Main One partner China Telecom, the West African firm said.

Google has said little about the matter. It acknowledged the problem Monday in a post on its website that said it was investigating the glitch and that it believed the problem originated outside the company. The company did not say how many users were affected or identify specific customers.

Google, Main One
Google CEO Sundar Pichai speaks during a news conference in New Delhi. VOA

Google representatives could not be reached Tuesday to comment on Main One’s statement.

Hacking concerns

Even though Main One said it was to blame, some security experts said the incident highlighted concerns about the potential for hackers to conduct espionage or disrupt communications by exploiting known vulnerabilities in the way traffic is routed over the internet.

The U.S. China Economic and Security Review Commission, a Washington group that advises the U.S. Congress on security issues, plans to investigate the issue, said Commissioner Michael Wessel.

“We will work to gain more facts about what has happened recently and look at what legal tools or legislation or law enforcement activities can help address this problem,” Wessel said.

Google, Main One, YouTube, Google, google services
A Google logo is displayed at the entrance to the internet based company’s offices in Toronto. VOA

Glitches in border gateway protocol filters have caused multiple outages to date, including cases in which traffic from U.S. internet and financial services firms was routed through Russia, China and Belarus.

Yuval Shavitt, a network security researcher at Tel Aviv University, said it was possible that Monday’s issue was not an accident.

Also Read: Google Investigating The Root Cause Of its Malfunction

“You can always claim that this is some kind of configuration error,” said Shavitt, who last month co-authored a paper alleging that the Chinese government had conducted a series of internet hijacks.

Main One, which describes itself as a leading provider of telecom and network services for businesses in West Africa, said that it had investigated the matter and implemented new processes to prevent it from happening again. (VOA)