https://www.theverge.com/2023/9/19/23880275/google-search-ads-competition-auction-prices-doj-trial-antitrust Skip to main content The Verge logo.The Verge homepage * The Verge homepageThe Verge logo./ * Tech/ * Reviews/ * Science/ * Entertainment/ * MoreMenu The Verge logo. Menu * Google/ * Tech/ * Antitrust Google quietly raised ad prices to boost search revenue, says executive Google quietly raised ad prices to boost search revenue, says executive / Google brings in tens of billions of dollars a year with search ads -- and the Justice Department claims it faces little competition. By Adi Robertson, a senior tech and policy editor focused on VR, online platforms, and free expression. Adi has covered video games, biohacking, and more for The Verge since 2011. Sep 19, 2023, 2:01 PM UTC| Share this story * * * Photo illustration of Google logo in front of the U.S. Court House Illustration by Cath Virginia / The Verge As the second week of the US v. Google antitrust trial gets underway, the Department of Justice is focusing on the real moneymaker behind Google Search: ads. It alleges that Google's dominance lets it raise prices for advertisers with few repercussions -- a claim backed up by Google ads executive Jerry Dischler on the stand. Bloomberg's Leah Nylen has the details of Dischler's testimony, where he describes statements he made under oath in 2020. Dischler says Google tweaks its auction process in ways that may have raised prices in the past by 5 percent for the typical advertiser and could potentially have raised them by 10 percent for some queries. The parties buying the ads would have been unaware of these "tunings" of prices; "we tend not to tell advertisers about pricing changes," Dischler said. The Verge's logo over a photograph of the Supreme CourtThe Verge's logo over a photograph of the Supreme Court The Verge's logo over a photograph of the Supreme CourtThe Verge's logo over a photograph of the Supreme Court Follow this case with The Verge's Tech Cases Bot on X / Twitter or Mastodon. Raising ad prices was apparently one way for Google to increase search revenue during dry spells -- one of which apparently occurred in the spring of 2019, according to an email chain involving Dischler and fellow Google executive Anil Sabharwal. "We are shaking the cushions" on ads launches, Dischler writes in the email. The email also describes other options for boosting revenue that include making Search more prominent for Chrome users. Another trial exhibit indicates that Google made $98 billion from search ads for its owned-and-operated services in 2019 (apparently not including revenue from YouTube, according to Big Tech on Trial newsletter reporter Yosef Weitzman), and Dischler said that the number topped $100 billion in 2020. The "vast majority" of growth has come from mobile search. Dischler said in court that 10 percent was around the upper limit of price increases and that raising prices by 15 percent would be "a dangerous thing to do" -- although, as Nylen notes, Dischler acknowledged that overall revenue might still rise even if the high rates drove some advertisers to competitors like Meta or TikTok. As Weitzman writes, demonstrating that Google can raise ad prices with little competitive pressure could help bolster the Justice Department's argument that Google maintains an unlawful monopoly. It's an objection that the department can't raise for the search engine itself, which is a free product for consumers -- although it can allege that other forms of harm, like lax privacy standards, might have been mitigated in a more competitive search industry. Dischler is resuming testimony today in the trial, which is expected to stretch into November, with a verdict not anticipated until next year. Most Popular 1. This is Microsoft's new disc-less Xbox Series X design with a lift-to-wake controller ----------------------------------------------------------------- 2. The cable bundle of the future is officially here ----------------------------------------------------------------- 3. Apple iPhone 15 Pro and Pro Max review: by the numbers ----------------------------------------------------------------- 4. Microsoft's Phil Spencer says acquiring Nintendo would be 'a career moment' ----------------------------------------------------------------- 5. Xbox leak: new Xbox Series X design, next-gen in 2028, and more ----------------------------------------------------------------- Verge Deals / Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily. Email (required)[ ]Sign up By submitting your email, you agree to our Terms and Privacy Notice. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. From our sponsor Advertiser Content FromSponsor logo Sponsor thumbnail More from this stream US v. Google: all the news from the search antitrust showdown * US v. Google, Week Two begins. Sep 18, 2023, 12:30 PM UTC * In the Google antitrust trial, defaults are everything and nobody likes Bing Sep 15, 2023, 6:01 PM UTC * Breaking down the Google antitrust trial. Sep 12, 2023, 10:40 PM UTC * Opening arguments in US v. Google just ended! Only ten weeks left to go. Sep 12, 2023, 5:37 PM UTC See all 13 stories The Verge logo. * Terms of Use * Privacy Notice * Cookie Policy * Do Not Sell Or Share My Personal Info * Licensing FAQ * Accessibility * Platform Status * How We Rate and Review Products * Contact * Tip Us * Community Guidelines * About * Ethics Statement The Verge is a vox media network * Advertise with us * Jobs @ Vox Media (c) 2023 Vox Media, LLC. All Rights Reserved