Introduction
This case study will examine a Google update of Chrome ad-blocking software through the lens of Actor-Network Theory and Process Theory, and Lewin’s Forces Field Analysis model. The aim is to identify the effects Google has on the digital advertising market and market share. At the core of this product launch is an entire industry that is disproportionate due to the market share measurement variances. Recent research on global revenue streams of all digital ad market (Desjardins, 2016) generated show Google, 41 percent, Facebook, 16 percent and the nearest competitor Microsoft, 3.8 percent. Google maintains a stronghold market share in internet search too, 64 percent (Desjardins, 2017). Google’s global value stands at $109.5 Billion.
Overview of Problem
The digital advertising market monetizes space for online publishers on desktop web pages, online platforms, mobile web, and mobile applications. Tallinn based start-up, Ad-Cash, is among the online digital advertisers whose online business is directly impacted by Google’s decision to improve user-experience on Chrome web browser with ad-blocking software. Google’s software will apply new rules to regulate digital advertisers (Gartenberg, 2017) with Chrome’s built-in Ad-Blocker. In response to assessments of consumer’s web and mobile experiences. Large-Scale research of 25,000 internet users conducted (Coalition for Better Ads, 2018) affirms that consumer’s online experience with advertisements is below user accessibility preferences. Also, this study correlates user-experience and Adblock usage. Consumers more likely to opt-in or buy Adblock software had negative online advertising interactions.
Advertisers enhance campaigns with animated special offers as attention grabbers. Aesthetics extend beyond static ads into graphic design images, audio-play, and special effects. For example, pop-ups appear immediately onto screen covering intended content to present an ad to consumers; native ads appear within the newsfeed of platforms (e.g., YouTube, Facebook); or banner ads with animation and flash movement appear on the perimeter of the screen. An independent consumer study conducted by research team Cortland et al. (2017, p. 12 and 14) on Adblock usage reveal users want to get rid of specific problems rather than rejecting all online advertising. 23% of the respondents found automatic audio play disruptive. The outlook for static ads that are non-intrusive was preferred by 52% of the respondents.
In 2017, Google announced that particular ad types would be blocked automatically within Chrome. More precisely the ads that will be affected on desktop are pop-up ads, auto-playing video ads with sound, prestitial ads with countdown and large sticky ads. Recent research on this topic (Coalition for Better Ads, 2018) indicate that mobile ad types that are affected include pop-up ads, prestitial ads, ad density higher than 30%, flashing animated ads, auto-playing video ads with sound, postitial ads with countdown, full-screen scroll over ads and large sticky ads. However, there is a 7.5% of non-compliance threshold set by Google before blocking publisher’s online ads.
Moreover, Google will give an opportunity to the sites to remove the offending ads within 30 days before blocking their ads entirely. Due to which, 37% of sites have already improved the quality of their ads. The increasing number of frustrated consumers drove the decision to block ads in the browser. Research indicates (Boyd, 2018) there were more than 5 billion mutes from people using Google’s “mute this ad” feature in 2017. This has led increasing number of consumers to use ad blockers and thus raised worry among advertisers and publishers. Many publishers have implemented “ad block walls,” but of course this solution is not going to solve the problem. The main idea behind implementing Adblock for Chrome is to create more customer-centric browsing experience together with publishers and advertisers.
Figure (insert) Lewin’s Force Field Analysis
1.1. Actors Apart of the Digital Ad Market*
The impact of the release of updated Chrome browser on the entire online advertising market can be easily analyzed using Actor-Network Theory, as all the different actors in this ecosystem have an influence on each other. When using ANT to analyze this case, it is necessary to identify different human and non-human actors that are involved and determine how they influence the consumer web browsing experience. We used various articles to examine the relationships between different actors and used content analyses method to identify the main actors and patterns. This also helped us to recognize the associations between the identified actors. Consequently, the following human actors could be determined: 1) web browser developers – in this case, we only include Google with its Chrome browser; 2) Publishers – website owners who want to monetize their page traffic with advertisements; 3) Advertisers – different companies who wish to advertise their services or products on the internet; 4) Advertising networks – who provide platforms for connecting advertisers with publishers using certain ad-formats (except social media channels (excl. Facebook) and search engines (excl. Google search and other similar); 5) Other adblock companies; 6) Coalition for Better Ads 7) Google LLC and one non-human actor: Chrome’s ad blocker. The motivation to be in this network is different for all of the actors, but without them the system would not work. Moreover, when using ANT to analyze a case it is necessary to examine different actors interest in forming the network (Gao, 2005), form a detailed understanding of relationships within the network (Pulk and Murumägi, 2013) and determine the connections that these different actors have to the consumer web browsing experience.
In ANT it is important to distinguish mediators and intermediaries in the network. We can say that Google LCC, Chrome’s adblock and Coalition for Better Ads acted as mediators and other actors acted as intermediaries. In this case, the focal actor that initiated the whole process was Google LLC that also acted as a mediator. It is an actor around which the network was formed and transform. Coalition for Better Ads was strongly involved in the network and shaped the formulation of the end product. Coalition for Better Ads clearly had a solid influence on the better customer experience and sets the rules for publishers, advertisers and advertising networks. The Coalition encourages advertisers, publishers, and advertising technology providers to review its research and the initial Better Ads Standards, as part of their efforts in the marketplace to improve the online ad experience. (Coalition for Better Ads, 2018) Chorme’s ad blocker holds the power in the network. Thus, it is important to analyze how the artefact, in this case, Chrome’s ad blocker organizes people around it. Directly it affects other adblock companies, which will most probably lose their market share. Besides, it has an effect to all the other actors mentioned earlier, excluding Coalition for Better Ads. Chrome will be more customer-centric web browser with less intrusive advertisements, publishers will be affected by not being able to show the ads mentioned earlier, ad-networks need to be more aware of the pages that qualify to the new rules and make changes to their approaches. Thanks to the Chrome ad blocker Google will gain even bigger market share. According to Pulk and Murumägi (2013) mediators are more important actors of the network that transform, change, modify, translate and distort the meaning of the inputs. The web browser Chrome acted as an intermediary by acting as an agent between actors by transporting the concept of Google and acting as a platform for the usage of the product. Publishers, advertising networks and advertisers act as intermediaries who need to adjust their business models and processes accordingly but they do not have a direct influence on the product. Advertisers and publishers will most probably need to invest in higher quality ads, hence producing better customer experience in the web.
The impact of the release of updated Chrome browser on the entire online advertising market can be easily analyzed using Actor-Network Theory, as all the different actors in this ecosystem have an influence on eachother. For this case we can determine the following actors: 1) web browsers – individuals using internet browsers to access Web; 2) web browser developers – in this case, we only include Google with its Chrome browser; 3) Publishers – website owners who want to monetize their page traffic with advertisements; 4) Advertisers – different companies who wish to advertise their services or products on the internet; 5) Advertising networks – who provide platforms for connecting advertisers with publishers using certain ad-formats (except social media channels (excl. Facebook) and search engines (excl. Google search and other similar)). The motivation to be in this network is different for all of the actors, but without them the system would not work.
TBC…
1.2. Google Economic Impact*
The duopoly of two giants is paving the way for digital advertising market globally. In U.S Google and Facebook are ruling the digital advertisement market listing 63.1 percent of digital ad spendings in 2017. Based on eMarketer predictions this duopoly will increase their share by 2019 (Abbruzzese, 2017). When looking at the global online advertising revenue, Google had 44% market share in 2017 (Richer, 2017).
Continually increasing demand to reach more customers and do it in new ways is a remaining challenge in the digital advertisement market, where these previously mentioned companies have succeeded to recall this demand better than competitors.
“Google and Facebook have positioned themselves at the front of this demand curve by being the ad publishers with some of the best-in-class targeting abilities in the digital ad market. With Facebook being able to provide targeting based on consumer interests and Google capitalizing on where those consumers have been through searches, both companies ensure their lead among digital ad publishers.” -Monika Pearth (eMarketer, 2017).
Google has managed to grow by acquisitions and build a significant set of services and products to support their business model, over 200 acquisitions during the last decade has made them a leader in that category. Despite all the acquisitions, the company has managed to remain their agility, by building the small self-sustaining businesses under the so-called Alphabet umbrella. Some of the most namely ones are YouTube and Android, which are called to protect and support business with Google’s crown jewel AdWords (Boyd, 2017). Google AdWords is an advertisement service tool provided by Google, which is based on Google’s search engine keywords. AdWords is offering advertisement platform for advertisers which is connected to Google’s digital advertisement channels (Google AdWords, 2018).
Followed by several acquisitions which built wide technology base for Google, the company has built a business module around the digital advertisement channels; they have a search engine, Gmail, YouTube, Maps, etc. (Nemni, 2017). With a vast web of channels, Google is also able to track the consumers better than it’s competitors. In the moment when the consumer run the search, which can be done on various platforms and times of day, with Google tools these consumer searches can be tracked and followed. Such a feature creates a continuum to that searches and opens an opportunity to an advertiser to target their advertisement as a story, reaching over simultaneous platforms provided by Google or partners. Tools also allow Google to recognize the user behind the device due to fact that all the user interfaces requires Google account logging, creating a possibility to be recognized and followed user, not only device like most of the competitors (AdWords, 2018).
From the process theory perspective, the theory is explaining how things progress over the time, from the start to develop until the end (Langley et al., 2013). Google’s growth story with Chrome browser can be looked over the lens of Process theory. How the search engine was first invented, then how the whole company has managed to build a business around it with all the acquisitions. Nowadays, with all the tools Google has, keeping mind a dominant position in digital advertisement market, and especially browsers. Google as a market leader with Chrome, can set the rules for digital advertising market and develop the marked as a way they see beneficial for example by adding ad blocker to the browser. Chromes new Adblocker will improve user experience and may increase the market share in browsers, but it may also force the advertisers to create quality content and dance by the rules of Google because Adblock will block the unwanted content (based on customer survey). With Google tools, advertisers can make sure that they can create content that passes new Adblocker. Creating content is made so easy, accessible and cheap that it is hard to resist. At the moment, digital advertisement market, and in this context Chrome are in the development phase of the process to become even bigger, and strengthening their market position.