Bits and Bobs from around the industry:
- Exclusive: Aditude Acquires Hashtag Labs
- Google’s second antitrust trial could help shape the future of online ads
- Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch”
- Your Day One Recap: DOJ vs. Google Goes Deep Into The Ad Tech Weeds
- Day 2: Stephanie is being emotional and unproductive
Exclusive: Aditude Acquires Hashtag Labs
Aditude has acquired Hashtag Labs, merging two ad tech firms that support publisher monetization. The deal, which closed on August 16, reflects publishers’ need for efficient revenue solutions amid growing competition. Hashtag Labs, founded in 2014 by John Shankman, will integrate its technology into Aditude’s platform. Shankman will become Aditude’s chief strategy officer. Both companies collectively support over 200 publishers, and all 25 Hashtag Labs employees will join Aditude. Aditude, which raised $15 million last year, plans to expand through more acquisitions while building additional products, including analytics tools for publishers.
Google’s second antitrust trial could help shape the future of online ads
Google is back in court facing a second antitrust trial from the Department of Justice, this time focusing on its advertising business. The DOJ argues that Google’s ad tools monopolize the market, leading to higher ad prices and limiting competition. If the DOJ succeeds, Google could be forced to divest its Google Ad Manager suite. The case follows an August ruling that declared Google a monopolist in internet search. The DOJ claims Google unfairly leveraged acquisitions like DoubleClick, while Google argues its practices promote innovation and competition. The trial could last several weeks.
Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch”
PubMatic revised its 2024 revenue projections, citing a $5 million shortfall due to Google DV360 shifting to first-price auctions in May. PubMatic had been tagging bid requests as second-price auctions, winning more bids from DV360 as a result. However, DV360’s updated bidding logic affected all SSPs, redistributing PubMatic’s lost revenue to competitors. Despite the industry-wide shift to first-price auctions in 2017, PubMatic continued using second-price auctions, perplexing experts. The revenue didn’t leave the market but was reallocated to other exchanges when DV360 stopped honoring second-price bid requests. PubMatic declined to comment on the discrepancy.
Your Day One Recap: DOJ vs. Google Goes Deep Into The Ad Tech Weeds
The first day of Google’s ad tech antitrust trial in Virginia highlighted the complexities of the ad tech ecosystem. The DOJ argues that Google operates three monopolies in ad servers, ad exchanges, and ad networks, citing Google’s control of 87-91% of the ad server market and its tie between Google Ads demand and AdX. Google’s defense counters that the DOJ’s claims are outdated, asserting that ads span multiple channels, and it only controls 25% of the market. Witnesses from companies like Gannett and Index Exchange testified on Google’s dominance, with debates over header bidding, programmatic advertising, and server switching challenges.
Day 2: Stephanie is being emotional and unproductive
On Day 2 of the Google ad tech antitrust trial, key witness Stephanie Layser, an expert from Amazon and former News Corp exec, testified about Google’s Unified Pricing Rules (UPR) and its monopolistic grip on publishers. She detailed how News Corp’s efforts to switch from Google’s ad server (DFP) were hindered by the loss of AdX demand, and Google’s refusal to share logs for comparison. Layser explained how Google’s “last look” bidding practices and lack of competition control affected publishers’ revenue. Jay Friedman, CEO of Goodway Group, also testified about the ad market’s complexity and Google’s dominance.
