Google has admitted to a technical error that caused some of its advertisers to be overcharged for their campaigns last year. The company said it would issue credits to the affected customers and promised to prevent such mistakes in the future.
What happened, and who was affected?
According to Google, the overbilling glitch occurred between July and December 2023 and impacted some of its Display and Video 360 buyers. Display and Video 360 is a platform that allows advertisers to run programmatic ads across various channels and formats.
The glitch resulted in some advertisers being charged up to 100 times more than they should have been for their campaigns. For instance, one of Google’s customers, Twelve Three Media, received a credit card charge of $50,000 for a service that normally costs $500. The agency said it was shocked by the huge discrepancy and contacted Google for an explanation.
Google said the error was caused by a problem with one of its payment processing partners and that it was not intentional. The company also said it has fixed the issue and that it will not happen again.
How did Google respond, and what are the implications?
Google sent an email to the affected advertisers on Thursday, February 15, 2024, informing them of the overcharging issue and apologizing for the inconvenience. The company said it will issue credits to the advertisers’ accounts within the next 30 days and that they can use them for future campaigns.
However, some advertisers were not satisfied with Google’s response and said they expected more transparency and accountability from the tech giant. They also said they faced difficulties in disputing the charges with their credit card companies, as the charges did not show up in their Google Ads accounts.
The overbilling glitch could damage Google’s reputation and trust among its advertisers, who rely on the company’s accuracy and reliability for their online marketing. It could also expose Google to legal action or regulatory scrutiny, as the company has faced antitrust lawsuits and investigations in the past.
What are the best practices for advertisers to avoid such errors?
The overbilling glitch highlights the importance of active management and monitoring of digital advertising campaigns. Advertisers should set up billing thresholds and alerts to keep track of their spending and avoid unexpected charges. They should also review their invoices and statements regularly and report any discrepancies to Google or their credit card companies.
Additionally, advertisers should work with reputable and experienced agencies or partners who can help them optimize their campaigns and resolve any issues. They should also diversify their advertising channels and platforms and not rely solely on Google for their online marketing.
Google is the dominant player in the digital advertising market, with a global market share of 28.9% in 2023. However, the company faces increasing competition from other players such as Facebook, Amazon, and TikTok, who offer alternative and innovative ways to reach online audiences.
