Google Filing Claims Open-Web Advertising Is Rapidly Declining
Key Points
- Google’s filing says open‑web display advertising is in rapid decline.
- Company argues the decline refers only to open‑web ads, not the overall web.
- Investments are growing in connected TV, retail media, and in‑app ads.
- Google reports a 45% increase in indexable web content since 2023.
- Critics question the quality of new content and the impact on publishers.
- Shift in ad spend may change Google’s incentives for driving web traffic.
In a recent court filing, Google stated that advertising on the open web is experiencing a rapid decline, a characterization the company later contested as a misreading of its remarks. Google clarified that the decline refers specifically to open‑web display ads, not the health of the web itself, emphasizing growth in non‑open‑web formats such as connected TV, retail media, and in‑app advertising. The filing also highlighted a 45 percent rise in indexable web content since 2023, a metric Google cites to argue that the web remains vibrant despite advertising shifts. Critics argue the decline signals changing incentives for Google’s search and AI services.
Google’s recent court filing included language suggesting that the open web’s advertising ecosystem is in “rapid decline.” The phrasing drew attention from industry observers who interpreted it as an admission that the broader web is losing relevance. Google’s spokesperson swiftly responded, labeling the line as “cherry‑picked” and arguing that the statement pertains only to open‑web display advertising, not the overall health of the internet.
Google’s Position
According to the company, investments are shifting toward non‑open‑web display channels, including connected TV, retail media, and especially in‑app advertising, which it describes as the largest growth sector in its ad business. Google contends that these trends reflect strategic reallocations rather than a weakening of the web itself. The filing also notes a 45 percent increase in indexable web content since 2023, a statistic the company uses to illustrate that the volume of searchable material continues to expand.
Industry Implications
Analysts note that while Google’s revenue from search remains robust, the decline in open‑web display ads could alter the company’s incentives. If display ads on traditional websites generate less revenue stream, Google may prioritize platforms where it can drive more engagement, such as its own AI‑first search experience or mobile apps. The shift could have downstream effects on publishers that rely heavily on display advertising for revenue.
Metrics and Controversy
The 45 percent growth in indexable content is presented as evidence that the web is thriving, yet critics point out that the nature of the added content is unclear. Some suggest that a portion may consist of AI‑generated material, raising questions about quality versus quantity. Google has not released detailed traffic data to substantiate claims that its AI‑driven search continues to funnel users to traditional web pages.
Overall, the filing underscores a tension between Google’s public assertion that the web remains healthy and the observable migration of advertising spend toward newer, non‑open‑web formats. The debate highlights broader concerns about the sustainability of the open‑web advertising model in an era of rapid AI adoption and evolving consumer habits.