Home Platforms Google’s Ad Business Undergoes Massive Reorganization

Google’s Ad Business Undergoes Massive Reorganization

SHARE:

Google’s advertising chief Prabhakar Raghavan is reorganizing Google’s ads business – and adding new heads of measurement and privacy, according to multiple AdExchanger sources.

As part of the reorg, he’s re-visualizing the company as four “concentric circles.” The innermost circle is Google’s owned-and-operated properties, including search and YouTube. The next circle outside of that is Google’s buy-side and sell-side businesses. The two outermost circles span the organization: measurement and privacy.

As part of the change, Raghavan created two new roles: a head of measurement, Vidhya Srinivasan, and a head of privacy, Mike Schulman.

Raghavan stepped into the ads role last October, so he took his time before making organizational changes, which started rolling out last month.

The addition of measurement and privacy heads, in particular, speaks to how Google sees those areas of strategic importance. Google CEO Sundar Pichai has talked about how he wants products to be engineered to minimize the use of data, for example – a goal a privacy-focused team could accelerate.

Plus, having a head of privacy doesn’t hurt as the company faces growing pressures to show consumers and regulators that it respects users’ privacy.

Raghavan also made significant changes to the leadership of Google’s buy-side and sell-side businesses, reducing the scope of Brad Bender, the former head of those divisions.

Bender, a widely respected leader who spent 10 years at DoubleClick and more than a decade at Google, is stepping into a strategic adviser role and will report directly to Raghavan.

Now there will be two separate heads, one for the buy side and one for the sell side – a slight separation of the two pieces of the business.

Jerry Dischler is stepping into the buy-side chief role.

Sissie Hsiao, who previously ran the AdMob business, is now running all three sell-side businesses, with an eye toward unifying the AdMob, Google Ad Manager and AdSense businesses.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Jason Bigler, the recently appointed head of Google Ad Manager, is departing, moving to a fin tech after a long run at both DoubleClick and Google. He will lead product management and engineering strategy for Two Sigma, a company that uses AI and machine learning to trade stocks. Its largest line of business is a hedge fund.

The reorganization comes as Google’s business faces pressure on multiple fronts.

Google faces four antitrust investigations – from the House Judiciary Committee, state attorneys general and two from the US Justice Department. It received a $1.7 billion fine in March from the European Union for violating antitrust rules.

On the privacy side, Federal Trade Commission recently fined the company $170 million for violating children’s privacy on YouTube.

Although the entire ads business is undergoing a reorganization, Google’s network business – where Google-powered ads appear on non-Google-owned sites – may have been particularly ripe for such change.

Previously, Google had multiple sell-side businesses for display, apps and AdSense. But because clients use many of those products simultaneously, it made sense for Google to unite them all under one business unit.

On the buy side, Google has already unified the backend of its two platforms – a project led by Bender.

Google’s network business is in the strange position of being powerful externally but disempowered internally. Externally, it faces complaints from competitors who see it dominating the market – which Hsiao recently denied in a blog post.

But internally, its overall revenue importance has slowly diminished. Back in 2010, the network business comprised 30% of Google’s revenue. In the latest earnings, it was just 14% of its revenue – and that’s before it paid out 70% of that revenue to its partners.

The slower-growing business just simply hasn’t matched the double-digit growth of search and YouTube – just one of the factors Raghavan likely weighed as he set up the new organization.

Google declined to comment.

Allison Schiff contributed reporting.

Update: Hsiao is also in charge of Google’s two ad networks, Google Display and App Campaigns, a Google spokesperson confirmed Monday.

Must Read

The Arena Group's Stephanie Mazzamaro (left) chats with ad tech consultant Addy Atienza at AdMonsters' Sell Side Summit Austin.

For Publishers, AI Gives Monetizable Data Insight But Takes Away Traffic

Traffic-starved publishers are hopeful that their long-undervalued audience data will fuel advertising’s automated future – if only they can finally wrest control of the industry narrative away from ad tech middlemen.

Q3: The Trade Desk Delivers On Financials, But Is Its Vision Fact Or Fantasy?

The Trade Desk posted solid Q3 results on Thursday, with $739 million in revenue, up 18% year over year. But the main narrative for TTD this year is less about the numbers and more about optics and competitive dynamics.

Comic: He Sees You When You're Streaming

IP Address Match Rates Are a Joke – And It’s No Laughing Matter

According to a new report, IP-to-email matches are accurate just 16% of the time on average, while IP-to-postal matches are accurate only 13% of the time. (Oof.)

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Gamechanger (Google lost the DOJ's search antitrust case)

The DOJ And Google Sharpen Their Remedy Proposals As The Two Sides Prepare For Closing Arguments

The phrase “caution is key” has become a totem of the new age in US antitrust regulation. It was cited this week by both the DOJ and Google in support of opposing views on a possible divestiture of Google’s sell-side ad exchange.

create a network of points with nodes and connections, plain white background; use variations of green and grey for the dots and the connctions; 85% empty space

Alt Identity Provider ID5 Buys TrueData, Marking Its First-Ever Acquisition

ID5 bought TrueData mainly to tackle what ID5 CEO Mathieu Roche calls the “massive fragmentation” of digital identity, which is a problem on the user side and the provider side.

CTV Manufacturers Have A New Tool For Catching Spoofed Devices

The IAB Tech Lab’s new device attestation feature for its Open Measurement SDK provides a scaled way for original device manufacturers to confirm that ad impressions are associated with real devices.