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.

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

Omnicom Investors Cheer IPG Sell-Off, Despite Weak Ad Spend In Q2

Omnicom is halfway through a major sell-off of IPG agencies. Its future looks healthier as it prunes lower-growth firms, including eliminating certain specialist firms and overlapping agencies in certain countries.

Hundreds of emails, depositions and other documents have been unsealed in the lead-up to the Google antitrust trial, providing a fascinating look at how Google talked about its own products when no one else was watching – especially tools to counteract the rise of header bidding.

Why PubMatic Ditched Its Prebid Web Wrapper, But Never Its SDK

Earlier this month, PubMatic shelved its Prebid integration wrapper, known as OpenWrap Web, and announced it would begin recommending Playwire as an offloading-onboarding partner for the 250-odd publishers that use its wrapper.

Gareth Glaser, Co-Founder & CEO, Gamera

Google’s Buyer Direct Could Beat Agentic Ad Tech At Its Own Game

Agentic AI shows promise for direct deals. But if Google has its way, Buyer Direct could put an end to all sorts of agentic direct sales opportunities while they’re still in the cradle.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

How Warner Bros. Discovery Is Creating Value Out Of Dead Air With Pause Ads

Streaming publishers are banking on pause ads to bolster revenue with a more user-friendly ad experience. With programmatic standardization still pending, Warner Bros. Discovery is taking a stab at advancing the capabilities behind its own pause ad formats.

Peacock Hits Profitability As Comcast Prepares To Spin Off NBCU

Peacock hit what Comcast Co-CEO Mike Cavanagh called “meaningful profitability” for the first time in Q2, just as Comcast decided to let it leave the nest. 

Comic: It's Coming For You

Programmatic Platforms Champion Transparency, But Not If It Means Giving Activists Access

A DSP refused to give ad industry watchdog Check My Ads a seat on its platform, even after both parties cosigned a master service agreement, citing concerns about “protections” for “vendor and supply partners.”