Ad tech services have helped small businesses grow, finds new research from PwC & Google

With the release of the ACCC’s Ad Tech Inquiry Final Report, which today identified significant competition concerns and likely harms to publishers, advertisers and consumers — new research from PwC Australia, commissioned by Google Australia, has identified the way in which ad tech services have led to job creation and helped small businesses to grow and reach a global audience.

According to the research, while the economic benefits are clear, the ad tech industry remains “largely misunderstood”, perhaps due to how dynamic and multifaceted it is.

Google says it wants to play a part in helping Australians “better understand how the broader ad tech ecosystem works, and the ways in which it is enabling innovation, jobs and creative competition across the digital economy”.

A Google spokesperson tells Mumbrella: “Google’s digital advertising technology services are delivering benefits for businesses and consumers – helping publishers fund their content, enabling small businesses to reach customers and grow, and protecting people online from bad ad practices.”

Earlier this month, the tech powerhouse denied that use of its ad tech platforms provides brands with an unfair advantage over the competition thanks to the large amount of data it has from its users.

However, the question remains whether ad tech, and in particular, Google’s own ad tech tools and services, help the economy or if it helps Google.

Google says the growth of online ad tech services has helped businesses to scale and achieve results in the most cost-effective and efficient way. This is particularly true for small and medium-sized enterprises (SMEs).

The tech giant adds that it doesn’t matter if you are a budding start-up or running a fully-fledged operation — ad tech evens out the playing field and encourages a dynamic marketplace.

Additionally, PwC’s report estimates that the existence and use of Google’s advertising technology directly supports “more than 15,000 full-time equivalent jobs and contributes A$2.45 billion in gross value add (GVA) to the Australian economy each year”.

It also shows that approximately 75% of Google’s advertising technology users are Australian small and medium sized enterprises.

These tools are helping businesses and advertisers to save time, reduce costs and grow their reach in the face of increased competition and large barriers to entry associated with traditional forms of advertising. Almost three in four businesses surveyed by PwC, that use Google’s ad tech services, observed these benefits.

And on average, respondents indicated that 28% of their advertising media is targeted at overseas markets — allowing businesses from all corners of Australia, including rural communities, to communicate directly to the people that matter to them.

Google says it is “proud to help millions of Australians every year navigate our increasingly digital world”.

The rise of Google’s ad tech, according to Google, has allowed small-to-medium enterprises (SMEs) across Australia to compete against larger businesses through an accessible and affordable platform, improving efficiency and reducing the friction of scaling globally.

“People use Google’s ad tech to reach new channels and opportunities which they wouldn’t otherwise have access to, or could afford, and it is important that regulation in the industry ensures that these businesses can continue to be the bedrock of Australia’s digital economy,” Google says.

However, Google is not alone — there are many companies working together and in competition to support the growth of a healthy digital ads ecosystem across different technologies — from web display, to apps, to connected TV and more.

Together, the ad tech industry is supporting a universe of Australian creators, publishers and business owners who underwrite the useful digital content and services that Australians enjoy everyday on the free and open Web. It’s powering the digital economy forward and helping people to find their passion, build their audience and grow their own way – important work that Google says, is proud to be a part of.


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