Inside the Slow Crumbling of the ‘Google Network'

Why has ad revenue from Google's web partners declined for the last two years? Hint: It's all about keeping more money.

Google’s Audience Network Revenue is Shrinking

The tech journal The Information has an interesting piece up this morning about Google's ad business shifting focus.

For eight straight quarters, ad sales on other companies' websites have declined. Google calls this the “Google network.” (You know may it elsewhere as “Audience Network” on Meta or other platforms’ “Partner Network.” )

All this, while ad sales on its own properties like search and YouTube have grown.

The shift only benefits Google

According to analyst Richard Kramer, Google is driving ad spending to its own properties, primarily by using its Performance Max format. This makes sense, as Google knows its own users best, making ad targeting easier.

But the piece says the shift hurts ad-dependent websites like news outlets, while benefitting only Google. It keeps 100% of ad revenue on its own sites, compared to just 30% on others.

Surely, the lawsuits aren’t… naw…

The timing is interesting, as for the past couple of years, Google has faced regulatory scrutiny over its ad-tech operations. Most recently, the American Department of Justice filed an antitrust lawsuit against Google in January 2023, which is set to go to trial in September.

Reddit to Split Ad Revenue with Sports Publishers

So while Google is less generous about sharing a piece of the pie, Reddit has introduced a new program that shares ad revenue with sports leagues like the NFL, NBA, and NASCAR.

Here's how it works: leagues post content, advertisers buy ads to run beside that content, and Reddit splits the revenue with the leagues.

A proven model

This approach has been successful on YouTube and X, encouraging users to watch more content and generating reliable ad revenue.

Reddit plans to expand the program to entertainment and lifestyle genres, partnering with producers who have engaged fan communities.

Reddit Adds Lead Forms and Zapier Integration

Staying with Reddit for a moment, the platform has introduced its own Lead Gen Ads, letting marketers collect customer info directly from their app promotions.

Here's how it works:

These ads include a “Sign Up” call-to-action (CTA)

When tapped, users are taken to a sign-up form to enter their details

That form auto-populates the email field

Reddit's Lead Gen Ads are now available to all advertisers globally.

Zapier integration

Reddit also announced new integration with Zapier will also make it easy to send lead info directly into your CRM. That integration is currently only available to brands working directly with Reddit's ad team.

Your Brand’s Content is X’s AI Bot Training Material

X, the former Twitter, plans to use your brand’s past and future content as training material for its anti-woke, snarky AI bot.

They’ve turned on a setting that shares your account’s posts, interactions, and inputs with Grok.

The “funny” bot

Grok, available with a premium subscription, is known for its sarcastic and cringey responses. It comes in two modes: “regular” for straightforward answers and “fun” for more edgelordy sarcasm.

Elon Musk, X's owner, says he wants Grok to be the funniest AI.

Here’s how to nope out of it

Go to Settings and Privacy > Privacy and Safety > Data sharing and personalization > Grok and uncheck the Grok box.

Publicis Buys Influencer Marketing Platform

Publicis Groupe said this week it plans to acquire Influential, an influencer marketing company and platform, to expand its influencer marketing services. The deal is expected to close in late August, but financial terms were not disclosed.

Publicis Groupe says it plans to focus on building out a creator network to work on social campaigns and affiliate channels.

Influential's founder and CEO will lead influencer marketing services for Publicis Groupe.

A maturing industry

This acquisition comes as influencer agencies and platforms focus on improving their talent and management technology. Analysts say this makes the space ripe for more acquisitions, particularly from holding companies looking to invest in and expand influencer marketing units.

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