In an ongoing federal antitrust trial, Google’s advertising practices are spotlighted this week.
Jerry Dischler, Vice President for Google’s advertising products, testified that Google adjusts its advertising auctions to meet revenue targets.
These adjustments, including price increases of up to 5%, are carried out without informing the advertisers.
This testimony is part of a larger case in which the U.S. Department of Justice (DOJ) alleges that Google has unlawfully maintained an online search monopoly.
As the trial continues, Google’s pricing changes, its competition with Amazon, and the impact of its policies on advertisers are all coming into focus.
Inside Google’s Advertising Practices
Dischler revealed during a federal antitrust trial on Monday that the tech giant regularly changes its ad auctions. These modifications, aimed at selling search ads, are carried out without notifying the advertisers.
“We tend not to tell advertisers about pricing changes,” Dischler stated.
He disclosed that in May 2019, his team was working on finding ways to ensure Google met the quarterly revenue targets set by Google’s CFO, Ruth Porat. He warned that failing to meet these expectations would result in a negative market response.
Dischler expressed concern about revenue and that a significant drop in Google’s stock price could negatively impact employee morale, especially for teams living in high-cost areas.