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Google quietly raised ad prices to boost search revenue, says executive
(www.theverge.com)
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Bloomberg’s Leah Nylen has the details of Dischler’s testimony, where he describes statements he made under oath in 2020.
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.
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.
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.
Dischler is resuming testimony today in the trial, which is expected to stretch into November, with a verdict not anticipated until next year.
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