In a bid to create a fair and transparent market for its partners, Google is incorporating the first price auction method on its online advertisement service brand “Ad Manager”, specifically concerning ad sales for display and video inventory products.
Launched in June 2018, “Ad Manager” worked on second price auction method until now wherein the highest bidder bought the product for the second-highest bid rather than on his own highest.
“With this change, the buyer that wins the auction pays the price they bid. By simplifying our auction in ‘Ad Manager’, we can help make it easier for publishers and app developers to manage and get fair value for their inventory,” Sam Cox, Group Product Manager, Ad Manager, Google wrote in a blog-post on Wednesday.
Given that both buyers and sellers would need time to alter their strategies, the transition would require time, and the company has, hence, decided to wait for a few months before starting to test the change.
“During this time, publishers and app developers will need to rethink how they use price floors, and technology partners will need to adjust how they bid for the ‘Ad Manager Inventory’,” Cox said.
The European Union’s antitrust regulators on Wednesday fined Google 1.49 billion euros ($1.7 billion) for abusing its dominance in the online search market by blocking rivals.
Google has abused its market dominance by imposing a number of restrictive clauses in contracts with third-party websites which prevented Google’s rivals from placing their search adverts on these websites, the European Commission (EC) said in a statement.
“Today the Commission has fined Google 1.49 billion euros for illegal misuse of its dominant position in the market for the brokering of online search adverts,” EC Commissioner Margrethe Vestager said.
It is the third EU fine for Google in just two years.
“Google has cemented its dominance in online search adverts and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites. This is illegal under EU antitrust rules,” Vestager said.
The Commission said the fine which is equivalent to 1.29 per cent of Google’s turnover in 2018 takes account of the duration and gravity of the infringement.
“The misconduct lasted over 10 years and denied other companies the possibility to compete on the merits and to innovate – and consumers the benefits of competition,” Vestager said.
Websites such as newspaper websites, blogs or travel sites aggregators often have a search function embedded.
When a user searches using this search function, the website delivers both search results and search adverts, which appear alongside the search result.
Through AdSense for Search, Google provides these search adverts to owners of “publisher” websites.
Google is an intermediary, like an advertising broker, between advertisers and website owners that want to profit from the space around their search results pages.
Therefore, AdSense for Search works as an online search advertising intermediation platform.