Small businesses harmed by breaking up Google’s ad tool

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### The Potential Impact of Breaking Up Google’s Ad Tool on Small Businesses

As a small business owner, **navigating the digital landscape** can feel daunting, particularly when shifts in policy threaten to disrupt the delicate balance we depend on. Recently, the Department of Justice (DOJ) proposed breaking up Google’s digital advertising services, a decision that could have far-reaching consequences for enterprises like mine.

#### Igniting Innovation: The Birth of a New Venture

My journey into entrepreneurship began in the 2010s as an **environmental scenting professional**. It all started in Las Vegas, where I developed unique, toxin- and allergen-free scents for various hotels. Inspired by my wife’s brilliant idea in 2017, we ventured into the world of retail, launching candles and sprays that allowed guests to bring the hotel experience home. Fast forward eight years, and we now serve over **100,000 customers annually**, generating more than **$7 million** in revenue.

### The Threat of Regulatory Changes

The DOJ’s proposal follows a federal judge’s ruling affirming Google’s dominance in the digital ad space. While the intention may be to foster competition, the implications for small businesses could be detrimental, **shattering the very framework** that connects advertisers to potential customers.

1. **Ad Efficiency**: Currently, a few clicks and a reasonable budget can secure ad placements across hundreds of relevant websites—think home décor platforms where potential customers frequent.
2. **Valuable Insights**: Google’s data analytics empower us to track our ad performance, allowing us to refine our strategies and maximize our investment.

These tools have been **critical** to our growth, enabling us to thrive in an ever-competitive market dominated by larger players.

#### Navigating Challenges Ahead

Should the proposal to dismantle Google’s ad tools proceed, **the price of advertising may soar**, making it increasingly difficult for us to reach our target audience. Higher costs paired with potentially declining sales could strain our bottom line and jeopardize the growth we’ve worked so hard to achieve.

Moreover, Google’s efficiency has a ripple effect on our branding. When consumers see our ads across multiple platforms—like Facebook or Instagram—after encountering our display ads on popular websites, they are more inclined to engage. **The connectivity fostered by Google** is vital for boosting our brand visibility and credibility.

### Innovation at Risk: The Cascading Effects of Fragmentation

Interestingly, competition emerges in waves. Companies like **TikTok** and various local TV networks are stepping up their game, tailoring services to attract ad revenue. They are adapting and enhancing their offerings to match Google’s efficiency. Disrupting Google could stifle this innovation, leading to a less dynamic advertising ecosystem.

#### The Bigger Picture: Industry Dynamics

Justice Department officials argue that Google monopolizes the digital display ad market at the expense of smaller competitors. However, the reality tells a different story; the **digital advertising landscape** is more diverse than ever, featuring options from **retail giants like Amazon** to social media platforms like Facebook and Instagram. The rise of these platforms signifies a growing pool of alternatives, where effectiveness is improving all the time.

### A Call for Thoughtful Consideration

It is crucial for the DOJ and the legal system to fully understand the **impact of fragmenting Google’s ad tools**. Yes, Google is a large entity, but its size translates into significant advantages for small businesses. Tinkering with a service that facilitates our operational efficiency may force us to spend additional time and resources managing various advertising platforms, which can take away from our core business initiatives.

Ultimately, breaking apart a successful system could hinder innovation and reduce the incentives for competitors to enhance their services. We need to be careful about undermining a functioning platform that continues to support small businesses like mine.

Jim Reding is the CEO of Las Vegas-based Aroma Retail.

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