Google winning 98% ad spots it auctions off, after order to treat others equally

#1

Post by hadenew119 » Tue, Jan 30, 2018, 6:17 PM UTC

Google winning 98% ad spots it auctions off, after order to treat others equally
wsj.com

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#2

Post by SubiculumCode » Tue, Jan 30, 2018, 7:39 PM UTC

Paywalled, so obvious question. Does Google's deep pockets just bid high?

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#3

Post by kyrra » Tue, Jan 30, 2018, 7:41 PM UTC

SubiculumCode wrote: post #2

Paywalled, so obvious question. Does Google's deep pockets just bid high?

I believe if you access it via twitter or facebook, WSJ still lets you in. Try the link from https://twitter.com/nat_droz/status/958396191531728896

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#4

Post by firloop » Tue, Jan 30, 2018, 7:43 PM UTC

SubiculumCode wrote: post #2

Paywalled, so obvious question. Does Google's deep pockets just bid high?

https://archive.is/2a176

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#5

Post by Analemma_ » Tue, Jan 30, 2018, 8:02 PM UTC

SubiculumCode wrote: post #2

Paywalled, so obvious question. Does Google's deep pockets just bid high?

Google claims that it operates the buying side as a standalone business that needs to be profitable so it doesn’t overbid. I don’t buy that claim for a second, and I don’t think the EU will either.

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#6

Post by natch » Tue, Jan 30, 2018, 8:38 PM UTC

Tell me if I've got this right:

Say you have some businesses in industry X that all rely on advertising.

Say one of those businesses also happens to own the dominant advertising platform that businesses in industry X need to use, in order to effectively find customers. (Special note for those subset of HN readers who tend not to read: Yes there may be other platforms, but before you present that as an objection, note I just said let's say they need to use this one in order to effectively find customers.)

In this setup, the business that owns the advertising platform has an advantage over all other businesses in industry X, because it pays itself advertising revenue, where the other companies have to pay their competitor. So money is always being siphoned off to pay the advertising platform, with a cost to most businesses but a (near) zero cost to the business owning the platform. We can assume the platform is already paid for out of profits made from advertisers in industries A, B, C, X, Y, and Z.

It seems to me this is a fundamentally rigged game (rigged in fact, not necessarily by intent) in which all other things being equal, the owner of the advertising platform always has the upper hand. Even if the bidding process is made "fair."

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#7

Post by zitterbewegung » Tue, Jan 30, 2018, 8:58 PM UTC

Which is more expensive. The new system that google is designing? The fine that they will have to pay? Or the oversight they will have to have to comply with EU law? (or some combination of the previous?).

On the other hand could Google just quit putting ads on requests from the EU?

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#8

Post by dugmartin » Tue, Jan 30, 2018, 9:01 PM UTC

kyrra wrote: post #3

SubiculumCode wrote: post #2

Paywalled, so obvious question. Does Google's deep pockets just bid high?

I believe if you access it via twitter or facebook, WSJ still lets you in. Try the link from https://twitter.com/nat_droz/status/958396191531728896

I have this bookmarklet I use when I hit paywalls and I don't care if Facebook knows I'm interested in it:

    javascript:location.href='http://facebook.com/l.php?u='+encodeURIComponent(location.href)

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#9

Post by btian » Tue, Jan 30, 2018, 9:04 PM UTC

Analemma_ wrote: post #5

SubiculumCode wrote: post #2

Paywalled, so obvious question. Does Google's deep pockets just bid high?

Google claims that it operates the buying side as a standalone business that needs to be profitable so it doesn’t overbid. I don’t buy that claim for a second, and I don’t think the EU will either.

Why not?

I'm sure if you bid something ridiculous, say $1 billion for an ad, Google would rather show your ad than one of Google's.

Re: Google winning 98% ad spots it auctions off, after order to treat others equally

#10

Post by aneutron » Tue, Jan 30, 2018, 9:07 PM UTC

dugmartin wrote: post #8

kyrra wrote: post #3

Earlier quoted context omitted.

I believe if you access it via twitter or facebook, WSJ still lets you in. Try the link from https://twitter.com/nat_droz/status/958396191531728896

I have this bookmarklet I use when I hit paywalls and I don't care if Facebook knows I'm interested in it: javascript:location.href='http://facebook.com/l.php?u='+encodeURIComponent(location.href)

This is extremely witty. You're the MVP.