Google Increases Ad Prices without Informing Advertisers

Google has admitted to quietly tweaking advertising auctions to meet revenue targets.

From SearchEngineLand: The search engine “frequently” changes the auctions it uses to sell search ads, increasing the cost of ads and reserve pricing by as much as 5% for the average advertiser.

For some queries, the tech giant may have even raised prices by as much as 10%, according to Google Ad executive, Jerry Dischler at the federal antitrust trial.

Google tends “not to tell advertisers about pricing changes”, he added.

Why we care…

Google’s acknowledgment has reverberated throughout the digital marketing industry, leading some to raise concerns about whether the search engine is manipulating Smart Bidding for financial gain.

Digital marketing expert Anthony Higman shared on X: “So I always knew this was the case, but to see it actually stated by the VP of ads is astounding! And what do you think smart bidding is? A smart way for Google to be able to easily manipulate ad prices! SMH.”

Why is Google on trial?

Google is facing a legal trial over allegations of employing questionable tactics to maintain its position as the world’s top search engine. The U.S. Justice Department contends that Google, holding a dominant 90% market share in search, entered into substantial financial agreements with companies such as Apple to secure its status as the default search engine on devices like the iPhone.

Google’s original motto was, “Don’t be evil.”

They later changed this to, “Do the right thing.”

If they have a new motto, it might be, “Profit over principles.”

https://searchengineland.com/google-quietly-increases-ad-prices-targets-432155