The fall of Google’s Search Engine
As midterm elections approach, the talk about passing a new legislation that would force a breakup of digital advertising technology business has developed. This new legislation would prevent big tech companies like Google from prioritizing promoting their own content instead of other parties. For example, Google owns Youtube. When searching on the Google search engine for videos, the first top choices are almost always a youtube video rather than another streaming platform. They are able to control a large market within the advertising business. Google is able to gain data from both Youtube and Google to increase the click rate when it comes to ads. According to Dina Srinivasan’s data, over the span of 18 years, on average about 60% of Google’s ad revenue came from its own properties/platforms.
This legislation is going to be a major hit to Google. We learned in class about the amount of opportunity that is available on Google Search alone. There are parts of the screen that are reserved for advertisement and this makes Google Search so advertisement driven. According to the article, “Google’s advertising-technology business supplies valuable data that provides a more complete picture of an online consumer’s journey.” Identifying keywords throughout searches on both youtube and google creates a set of data that will be valuable to others. Like we learned in class, Google is able to sell these keywords for revenue.
https://www.wsj.com/articles/why-google-plays-down-its-ad-tech-business-but-is-determined-to-keep-it-11667292084