MERCADEO Versión en español
Ana Jiménez from Equativ: Brands should consider options that mitigate the risks of the possible sale of Google’s advertising unit
Claudia Smolansky| 6 de agosto de 2023
Ana Jimenez de Equiativ
Ana Jiménez , co-managing director of Equativ, shared with PRODU her opinion on the recent news about the possibility that Google should sell part of its digital advertising business division and if this would have any impact on the Mexican market. “If the sale is completed, changes could arise in the supply of products and services, as well as in commercial policies, which would affect companies, consumers and users in general in the country,” explained Jiménez. At the same time, he pointed out that this could generate uncertainty among advertisers and agencies regarding the continuity of certain advertising tools and programs that already operate. For this reason, he stressed that it would be crucial for the Mexican market “to be prepared to adapt to changes that may arise and look for new opportunities in a post-sale scenario of the Google advertising division.” On the other hand, he stressed that the possible sale of Google’s advertising business depends on the resolutions of antitrust practices provided by the corresponding authorities. “With this contraction, the brand’s ad technology unit would have to operate as a separate entity, which would result in restructuring, new operations, and changes in relationships with other companies and vendors in the marketplace. Brands and agencies would have to consider this fact to modify their actions and adapt to the new conditions in the universe of digital advertising”, he pointed out. For his part, he indicated that both brands and agencies have to diversify their advertising strategies to explore platforms and channels in order to reduce their dependence on the resources that Google has developed. “Investments in digital advertising could be more focused on other marketplaces that are independent of the Open Web and that provide transparency as well as direct access to publishers’ inventories . At the same time, maintaining flexibility and adaptability to respond to the way to better cope with the changing environment of the actions that Google will take. It is important to know how to face the challenges that arise and have efficient and transparent technological tools that are already prepared for the world of advertising without cookies” , he pointed out. Next, Jiménez developed the advantages and disadvantages of Google’s digital advertising business unit: Advantages: ● Expand and improve the reach in the market. Google is the dominant platform in digital advertising globally, thus increasing the possibilities of reaching multiple audiences and that brands can position themselves before the users they want. ● Technology to the next level. Google offers a variety of advanced advertising tools that allow brands to segment their audiences, measure the performance of their ads, and optimize ad campaigns to meet their goals and get the results they want. ● Credibility and trust. The Google brand is widely recognized and trusted, which leads to an improvement in the perception and reputation of brands that choose to advertise on its platform. Disadvantages ● Dependence. By having a close relationship with Google, digital advertising may experience risks in the event that the platform makes changes or has technical difficulties that affect its operation. ● Competition and costs. Google’s popularity as the leading advertising platform has brought increased competition resulting in increased cost per click and higher ad spend for brands. ● Changing regulations and policies. Google’s advertising policies are subject to change and regulation, which may affect how brands can run their campaigns and access certain user data. “Google’s digital advertising business unit offers multiple benefits while bringing challenges. Brands and agencies would need to assess what the potential sale will entail in order to make informed decisions about their advertising strategy and consider options that best diversify and mitigate risks,” he concluded.
