In the world of advertising there are two truths: Advertisers want the lowest prices and publishers want to be paid as much as possible.
The interim report of the digital advertising services inquiry by competition watchdog the ACCC looked at conflicts of interest in the digital ad supply chain.
If one platform controls both the buy and sell side, then the process might not be the rigorous market some make it out to be.
“If the DSP (demand-side platform) and the SSP (supply-side platform) are both part of the same company, it is difficult for that ad tech provider to fully serve the interests of its advertiser and publisher customers at the same time,” says the ACCC in its report.
“The ACCC is concerned that the presence of conflicts of interest can result in poor outcomes for advertisers and publishers.
“Google’s leading position across the entire ad tech supply digital advertising services inquiry chain means it has attracted conflict of interest concerns of this kind.
“However, other smaller ad tech providers may have similar conflicts by virtue of their own vertical integration.”
The ACCC is still considering the effect this conduct may have on competition across the adtech supply chain and whether enforcement is needed.
The ACCC received submissions alleging that Google’s position across the supply chain may have allowed it to limit competition.
The allegations include:
- Google restricts access to YouTube: Stakeholders allege that by selling YouTube ad inventory exclusively through its own DSP, Google has made its services a “must have” for many advertisers.
- Google channels Google Ads demand to Google’s SSP: Stakeholders allege that by channelling demand from its own DSP (Google Ads) to its own SSP, Google has advantaged its SSP in a potentially anti competitive way.
- Google preferences own supply side services: Stakeholders are also concerned about the way Google’s SSP and publisher ad server services operate and that Google preferences its own services.
“In each of these cases, it is alleged that the ability and incentive for Google to engage in the conduct comes from its position as a supplier of vertically-integrated ad tech services and its strong position in the supply of these services,” says the ACCC report.
“Stakeholders have also raised concerns regarding Google’s restrictions on other adtech providers’ ability to access data, such as restricting access to Google’s unique identifiers and Google’s proposal to block the use of third-party cookies on its Chrome web browser.”
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