Google’s ad platform, a vital lifeline for small businesses, has drawn unexpected backing from entrepreneurs who warn they would be hardest hit if the tech giant’s ad tools were dismantled by the US government.
As the US Department of Justice (DOJ) pursues its antitrust lawsuit against Google, seeking to break up its advertising empire, small business owners are voicing their concerns. Many argue that Google’s advertising services are integral to their business operations, allowing them to reach customers on a scale that would be impossible otherwise.
On Thursday, the Connected Commerce Council, a non-profit that advocates for small business innovation, published a press release featuring the stories of three business owners who are deeply worried about the government’s case. They argue that dismantling Google’s ad suite could have devastating consequences for companies that rely on its tools to generate traffic and revenue.
The DOJ case, which was filed in January 2023, accuses Google of monopolising the online advertising market by combining services like Ad Manager, AdX, and DoubleClick for Publishers (DFP). These platforms, widely used by advertisers and publishers, have long been a cornerstone of Google’s vast influence in the digital ad space.
Impact on Small Businesses
For business owners like Jeff Taxdahl, co-founder of Thread Logic, a custom embroidery firm based in Minnesota, the potential break-up is alarming. Taxdahl relies heavily on Google’s ad platform to drive traffic to his website, with his business benefiting from the system’s efficiency.
“If Google’s ad services are broken up, it could significantly impact how we advertise,” said Taxdahl. “Millions of small businesses like mine depend on these tools to reach customers. Losing that could be catastrophic.”
Taxdahl’s business relies on Google’s ad system to generate hundreds of thousands of visits to his site each year. Like many small companies, Thread Logic uses the platform to extend its reach far beyond local customers, shipping orders across the US from Maine to Alaska. The prospect of losing access to Google’s ad tools has led Taxdahl to explore alternatives, including paid social media advertising, though he remains sceptical that any platform could match Google’s efficiency.
A Time-Saving Solution
Other small business owners echo similar concerns. For LaKita Anderson, founder of Simply LaKita, an online recipe publisher, Google’s integrated platform has been a game changer. Anderson initially partnered with various companies to place ads on her site but found the process cumbersome. Switching to Google’s system allowed her to centralise ad management and focus on growing her business.
“It saved me so much time,” she explained. “Instead of chasing brands and managing multiple platforms, Google’s suite made monetising my blog easier. For many publishers, it’s the difference between a hobby and a full-time business.”
If the DOJ succeeds in its case, Anderson fears the fallout would force her to make difficult decisions, including hiring a specialist to manage ad operations or even introducing a paywall for readers to compensate for lost ad revenue.
Google’s Growing Ad Empire
Google’s journey into digital advertising began in 2000, but it was the acquisition of companies like DoubleClick and AdMeld that solidified its dominance. Over the years, Google has leveraged these acquisitions to create a comprehensive suite of advertising tools that now dominate the market, which the DOJ alleges has stifled competition and driven up ad costs.
While critics have long accused Google of monopolistic practices, many small businesses have become dependent on the tech giant’s services. Anderson, Taxdahl, and others warn that the unintended consequence of the DOJ’s legal action could be to hurt small businesses that rely on Google’s ecosystem to thrive.
Uncertainty Looms
For Taxdahl, the most worrying aspect of the case is the uncertainty. “We don’t know what will happen if Google’s ad platform is broken up. Will we be able to reach as many customers as we do now? How will this impact our ability to grow?”
As the legal battle continues, small businesses are bracing for potential disruption. For now, entrepreneurs like Taxdahl and Anderson are exploring alternative advertising strategies but remain concerned that no platform can replicate the reach and efficiency that Google has built over the years.
In the meantime, business owners are left to speculate on the future of their advertising operations – and what the DOJ’s case could mean for their ability to compete in the digital marketplace.