What the Department of Justice’s lawsuit against Google’s ad business means for digital marketers

Department of Justice lawsuit against Google Ad Manager Suite Department of Justice lawsuit against Google Ad Manager Suite

The US Department of Justice filed a lawsuit last month that challenges Google’s position in the advertising tech industry. While the fate of Google’s advertising business is still under review, Ana Milevskaja, Interim Chief Marketing Officer at Productsup, shares her perspective on what the outcome could mean for advertisers and marketers.

What’s your view of the Department of Justice’s lawsuit against Google’s advertising business?

It’s not surprising regulators are looking to break up the digital ad market considering business from advertising is becoming one of the biggest revenue drivers for companies. This is largely due to the recent decline in consumer spending that has put pressure on businesses to find new customers, compelling them to shift their budget toward performance marketing.

Meanwhile, slower spending has also forced companies to look beyond traditional sales models for sources of revenue. Microsoft, Amazon, and TikTok are all examples of Big Tech ramping up their ad business. But we’ve also seen new retail players in this space, like Dick’s Sporting Goods, Walmart, and Michaels.

Digital advertising is a ‘hot’ place to be right now, which puts Google in a great position. The company has spent the last decades building up strong advertising offerings. Just look at its past few earnings statements. And now many others want some of that market share.

What would a breakup of Google’s online advertising business mean for digital marketers?

More diversity in digital advertising could be a good thing for businesses, as it would create more opportunities to reach more end users at more touchpoints. At the same time, companies are already struggling to manage their ad campaigns across various channels and software as it is. For as powerful of a marketing tool as digital advertising can be, it’s also a highly complex ecosystem. Any potential changes to Google’s business will shake up how marketers manage their product data, so they’ll need to have full visibility and control over their feeds to ensure no gaps in performance.

How do you see the digital advertising space evolving in 2023 overall?

Companies have to be strict with how they spend right now, so they’re allocating most of their budget to traditional advertising channels that they’re more familiar with, like YouTube or Facebook. Our Business growth report found 79% of businesses don’t intend to increase ad spend on Snapchat or TikTok this year.

But I anticipate that sentiment to change over the course of the year. It’s becoming more apparent that the companies that spread out their ads across multiple channels are seeing much success. In fact, our report found 62% of businesses rank social media as the most-used tactic to meet consumer expectations.

While it may feel riskier now to invest in newer platforms, the industry is shifting toward an omnichannel ecosystem. The companies that build a presence in these early stages will see a long-term gain among the next generation of consumers.

Learn more about where businesses are prioritizing ad spend in the Productsup Business growth report. Download now

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