Google is focused on being invested in all parts of the ad business: Dan Taylor

Google is very focused on being invested in “all parts of the ad business” even as the tech giant is engaging with the European Commission “constructively to address competition concerns”, shared Dan Taylor, VP of Google’s Ad Business, during a chat with e4m.

He was responding to a question on how Google was communicating with stakeholders following the EU’s suggestion to divest one part of the ad business. 

“Our business will succeed only when our partners succeed. So, we're really focused on our advertising tools. Our business works if advertisers can deliver results, publishers can get successful monetization, and users have a good sense of their privacy, along with being able to access content. Hence, we're very focused on being invested in all parts of this business because it supports an ad-supported web. At the same time, we are constructively engaging with the European Union Commission to address their competition concerns,” the Google executive said as part of a virtual roundtable during his recent India visit.

Taylor was in India to meet the company's clients and industry bodies among others. His visit was significant considering the massive layoffs and several lawsuits against the firm, including the one by digital publishers pending at the Competition Commission of India.

In June this year, the European Commission asked the tech giant to sell off some of its ad business to address concerns that Google was “throttling competition by leveraging its position” as the region's most dominant provider of both ad-buying tools for advertisers and ad-serving tools for publishers”.

Google owns all three sides of digital advertising –  Demand Side Platform (DSP), Supply Side Platform (SSP) and Ad Exchange (AdX) – and has hence been charged with a conflict of interests.

The EU’s move came on the heels of similar lawsuits in the US that has come up with a Bill, which proposes companies processing over $20 billion in digital ad transactions will face restrictions on owning multiple parts of the ad ecosystem.

Responding to another question from e4m about the uncertainty in the ad business due to adverse reports, Taylor asserted, “We keep our teams focused on delivering great results for advertisers and differentiated monetization for publishers. We're obviously engaging with the different places where there are regulatory files. We are talking with regulators, we're talking with the press and with our clients.”

Citing the emergence of Tik Tok, Amazon, Connected TV and shift in online viewing habits, Taylor further explained, “It's as competitive and dynamic as it's ever been to operate an ad business. Besides, our tools on the digital advertising side for advertisers and for publishers are interoperable. And most advertisers and publishers do multi-homing.”

“The average large publisher uses six different AdTech providers to help monetize their website. The average large advertiser or agency uses more than three different buying platforms and not only do they use these platforms they use them at a per-impression level. And so, millions of times, if not billions of times a day, we're competing to win an impression,” he noted, defending the charge of conflict of interest.

Noting that India has been one of the cornerstone markets for Google, Taylor said the country has seen tremendous adoption of AI-powered tools, particularly analytical and predictive AI that delivers massive success in ad campaigns.

He further noted, “Google has had a longstanding commitment to the success of India's digital transformation, and we're excited about continuing to partner in its trajectory of becoming $1 trillion digital economy. A tremendous opportunity continues to be right here in India.”

Privacy Sandbox to replace Cookie in FY24

Taylor stated that Privacy Sandbox API will replace third-party cookies in the “second half of 2024”.  Deadlines for cookie deprecation have been extended several times in the past. 

According to him, Sandbox may help in a “minor decrease” in both advertising spend and effectiveness of ads but still deliver "amazing marketing results" at a higher privacy level for consumers. He said that the testing on API is still on.

According to Taylor, a recent survey of 16,500 individuals from 11 different markets revealed that 70 per cent of those consumers would stop engaging with a brand in response to a data breach. 

Google Product Studio

Creating lifestyle images can be expensive and time-consuming. The tech firm has come up with "Google Product Studio" that can create plenty of images for a product portfolio, Taylor announced. Merchants who provide multiple images for products see up to a 76 per cent increase in impressions and a 32 per cent increase in clicks, he said.

AI for Better Advertising

Speaking about new AI-powered products in the company portfolio such as Gmail’s “Help Me Write”, Bard, Magic Eraser, and Magic Editor, Taylor said, “AI helps in finding patterns and connections in the information in the blink of an eye. For instance, AI can suggest the most eco-friendly route from Google Maps to enhance the impact of advertising.”

“AI is an essential tool for marketers as customer journeys are becoming increasingly complex, especially in India which has a diversity of languages and geography-specific requirements,” he said, adding that advertisers such as Myntra, Samsung, HDFC and Titan are already using AI tools for marketing.

AI can help drive 18 per cent more conversions at a similar cost per acquisition, he claimed.