The CEO of a media technology company has suggested Google may choose to discontinue its ad tech business in the long term, as privacy controls continue to pose a legal risk for the multi-billion-dollar company.
Polar CEO Kunal Gupta released his report on the state of digital media overnight, running through all things GDPR, Facebook, Google and others.
Among his insights, Gupta said the search engine giant’s $US7bn ad tech business “may not be worth the legal risk”.
He pointed out that while the business made up of DV360, Google Ad Manager and Exchange still has a 30 per cent margin, this is relatively low compared with the O&O business’s (search, YouTube, mail, maps) 87 per cent margin.
“Google may get out of the ad tech business long-term,” Gupta said.
“Regulatory and antitrust claims are heightening due to the role their Ad Tech stack plays in the wider industry.
“Google+ was shut down due to a data breach – not because it was not successful (it was still kept
around until it proved to be a liability). The Ad Tech business may have the same fate.”
This certainly will not be the case for search advertising, however, which has continued to grow despite some analysts predicting it to slow down.
According to IPG Mediabrands, Search as a whole has grown 17 and 20 per cent, with Facebook recently entering the market too.
Gupta also suggested Google’s current financial focus on Cloud Computing could be an indication it is moving away from ads to some extent.
In Google CEO Sundar Pichai’s latest earnings call he used the term “cloud” 30 times, compared to saying “ads” or “advertising” just 17 times.
What regulatory changes could mean
Despite predicting a potential shift in focus from the search engine company, both Google and Facebook are well placed to continue their success in digital media, according to the report.
In particular, recent legislative changes, such as the introduction of GDPR, look set to benefit these larger businesses in the long-term.
What is being labelled by some as the ‘death of the cookie’ means third-party data is difficult to acquire, while first-party data also presents challenges in itself.
Google and Facebook’s ‘deterministic data’ – users that are logged in to the site – gives these platforms a unique advantage, according to Gupta.
“We may look back in a few years and ask ourselves the question, ‘did Google and Facebook invent GDPR and CCPA?’. They clearly have the most to benefit,” he said.
Independent brand and digital agency, Archibald Williams (AW) has been appointed to lead the NBA account across the APAC region. The NBA is one of the most prestigious sporting leagues in the world and basketball is one of the fastest-growing sports in Australia. Effective immediately, AW said it was “excited” to work across all digital, […]
B&T's shining a light on industry folk prior to adland. Preference given to anyone purporting actual UFO abduction.
Leading digital outdoor company QMS has announced it is the first-ever inaugural partner for Most Contagious APAC, the landmark London event by creative and strategic intelligence company Contagious, which will be showcased in Australia on Tuesday, 12 December in Sydney and Wednesday, 13 December in Melbourne. Most Contagious is an event that delivers key advertising […]
Omnicom’s data and analytics division Annalect has partnered with Meta, giving it access to Advanced Analytics (AA) – one of Meta’s privacy-focused measurement solutions – to provide Omnicom’s clients with future-proof, next-level measurement. Omnicom is the first holding company to have access to AA. AA allows advertisers to combine their first-party data with Meta’s ads […]
WPP’s AKQA has launched Fixmas.gift, an environmentally conscious AI-powered DIY assistant, affectionately known as Fixie, for a one-stop solution for all things repair. Fixmas.gift hosts an array of guides and inspiration to empower people to prolong the lives of their belongings or purchase pre-owned items that need a little love and care. Fixie can: Help […]
Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]
Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]
Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]
Pinterest reckons jellyfish & moody cowboys will be big in 2024. Refused to be drawn on the return of shoulder pads.
IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]
Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising, announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]
NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]