-By Scott Cleland
Does Google warrant the current exceptional leap-of-faith in the integrity of its dominant ad auction model, given its near total lack of openness, transparency, independent auditability or third party oversight? There is a growing body of evidence that Google does not.
The New York Times article today by Miguel Helft, “The Human Hands behind the Google Money Machine,” is a must read for anyone following Google or concerned about the openness and transparency of public markets. It is also a little treasure trove of fresh information on Google.
Why a lack of openness sullies the integrity of Google’s ad auctions.
First, it is widely accepted that public markets operate best when open and transparent.
Google’s ad auction model has become one of the world’s most important public markets. Google is increasingly becoming the world’s primary public information broker. Google brokers:
- Information for over 700 million search users worldwide, over three to six times their nearest rivals;
- Advertisement placement for over a million advertisers several times more than their nearest competitors;
- Monetization for over a million websites several times more than their nearest competitors.
Google is also not open or transparent.
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