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Thread. Apparently Google is using UK market to test pushing back against the duopoly/competition narrative. Their UK chief's remarks are nothing short of foolish and disingenuous to the current and future of web. Regurgitating Google's old playbook. /1https://www.holdthefrontpage.co.uk/2017/news/google-boss-knocks-back-industry-calls-for-greater-ad-revenue-share/ …
Google UK chief's main point seems to be that publishers only share a minority of the revenue from their own sites with Google. This is an argument from a decade ago and fails to recognize Google’s dominant lock-in for search and data collection across the web. /2pic.twitter.com/rLbmYQdyNy
Yes, most publishers keep a majority of the ad revenue on their own sites once you get past the significant costs for programmatic/automated delivery. Put that aside for now, this argument (surfaced by Google) is about Google’s role in the duopoly. /3
Data. Google has trackers (data collectors) on more than 750,000 of top 1 million sites. This data collection allows them to target audiences using the cheapest inventory and cheapest suppliers possible. Yes, Google still serve ads on Breitbart and there are much worse sites. /4pic.twitter.com/AEqdMGmyaP
In this way, Search and Display are not actually that different. They are targeting direct marketing ads based on data collection. This is what most of digital advertising is run on. Facebook and Google control it. Harris's statement is ridiculous. /5pic.twitter.com/80HahilI9M
Revenue mix. Additionally, over the past five years, Google’s own revenue mix has migrated from Google's network of publishers (where they have the lowest margins) to Google's owned and operated businesses (where they have highest margins). Google controls this effect. /6
Google News argument is BS. Google UK chief regurgitates line “but we don’t even serve ads on Google News.” Google serves significant ads/revenue on Search, YouTube, elsewhere where news discovery is happening. /7pic.twitter.com/Ej3wQ7jlSP
The fact there is a "Google News" vertical is something most people outside of industry don't even understand. They're searching, discovering news and information through many channels where Google drives revenue/profit/data. /8
Duopoly. I can’t emphasize enough how much Google (and Facebook) hate being lumped together in the “duopoly.” They argue “but we’re different.” They're not. /9pic.twitter.com/Y7QFbBslbQ
Facebook and Google share same core business has nothing to do with the free service stacked on top. It’s the data collection across these services in order to micro-target advertising. Exact same business. /10pic.twitter.com/Kw9xqiGMHC
Ad blocking. Google UK chief fails to disclose this murkiness. I easily argue Google is stealing ad revenue from pubs. Some EU pubs lose more than 30% of their ads to ad blockers. Google has admitted to subsidizing major ad blockers in order to whitelist Google’s own ads. /11
Argument (Facebook also makes) they "drive traffic for free" is offensive. Google has 96% of mobile search market. It would not exist without publisher content. Any other engine (if it was possible for another one to materially exist) would also drive that traffic to pubs. /12pic.twitter.com/DjRojIAub3
I'll stop there for now. I haven't seen the full transcript (here is more coverage: http://www.pressgazette.co.uk/google-uk-chief-ronan-harris-says-digital-giant-is-not-stealing-advertising-from-publishers-telling-editors-we-come-in-peace/ …) but I'm offended, publishers should be offended and Google should change their PR tactics here immediately. /13
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