Google is being accused of lying about inflation in ad prices
One of those businesses that simply cannot avoid problems is Google. The business must occasionally increase its ad prices in response to the market. Cost increases are inevitable, so there is no problem. Ad Week via Search Engine Land reports that Google is being accused of understating the extent of the necessity of increasing its ad costs.
Google is currently the focus of an antitrust prosecution, and the business has acknowledged that it frequently raises rates without informing customers. That’s undesirable all by itself. Random price rises without prior notice are disliked by everyone. The business claimed that it occasionally hikes prices by up to 5% and a maximum of 10% without informing clients.
Google is accused of exaggerating how much it raises its advertising pricing
A 5–10% increase is not ideal, but it’s also not atrocious. However, some people think that the search engine giant lied about its assertion. According to Christine Yang, VP of publicity at Iris, Google boosts their pricing significantly without informing the clients.
She claimed that the business sometimes raised prices and sometimes went as high as doubling them without informing the clients. For instance, according to Yang, a marketing campaign targeted at a specialized market had a CPC (cost per click) of around $11.74. That increased to approximately $25.85 over the last six months, a 108% price increase.
Another instance: According to Giovanni Sollazzo, CEO of the media agency Aidem, the CPC for an advertisement increased from 26 to 53 cents, or nearly a 180% rise. If this is already a poor situation, the lack of notice given to the clients about these price increases makes it worse.
It won’t be favorable for the case if the corporation is discovered to have engaged in this practice. Google is currently attempting to dispel the myth that it is a bad monopoly. On the advertising market, it already has a firm hold. If it’s arbitrarily raising its price, it might suffer some repercussions.
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