Publishing/Writing: Insights, News, Intrigue

01/06/2014

Google Screwing Content Creators? Yes – But Change is in the Air


Google needs to be checked at times

Just like Craigslist devastated local classified advertising in newspapers, Google has also chipped away large chunks of advertising revenue from newspapers by ‘copying’ original content from newspaper articles and displaying it in their search results without compensating the newspapers and original content creators!

“Simply put, Google has not done enough to aid the newspaper industry. If the company continues their profiteering ways at the expense of original content creators, more papers will fold and less content will be created.” – Michael Kozlowski

Actually that first sentence in the quote above SHOULD read that Google has not justifiably compensated news sources for using their content. It has nothing to do with ‘aiding’. Newspaper content, if it is not already, should be considered copyrighted material with agreements for ‘fair use’ by the usual players — BUT, I don’t consider Google (or any other internet behemoths) using the work of others to make large advertising profits for themselves, at the expense of the original content creators and without proper compensation, a case of ‘fair use’.

Google apparently has woken up a little (with prodding) and has entered into commercial agreements to establish a €60m digital innovation fund that will help local news companies start to monetize their newspapers in digital form. This will allow media organizations to profit from Google advertizing platforms such as AdSense and AdMob for mobile phones.

More details provided in tonight’s interesting source article from Good E Reader by :

 

Has Google Demolished the Newspaper Industry?

There has been quite a number of journalists weighing in on the role Google plays in the newspaper industry. The company has made billions of dollars of advertising revenue at the expense of content creators. The newspaper industry has lost billions of dollars in the last 10 years, which is directly proportionate to the sheer growth Google has garnered .  Should Google be doing more for the newspaper industry?

In 2011 Google made 37.9 billion dollars, of which 96% derived from advertising. Each quarter from 2012 to 2013 earned Google 14 billion dollars on average with the same amount coming from their core advertising market. “Our top 25 advertisers are spending over $150 million per year” on Google’s ads business such as search, display and YouTube, said a Google Spokesman . Currently Google accounts for more than 41% of U.S. digital ad revenues, according to eMarketer.

When Google first introduced their Adwords platform in the year 2000, newspapers in the US peaked at $48 billion dollars from direct advertising. This has since declined to 18.9 billion in 2012. It is painfully obvious that most advertisers are getting more bang for their buck by advertising on the internet, instead of physical papers.

In the last few months many of techs leading innovators is trying to help journalism reach new heights and put a priority in the dailies. Amazon CEO Jeff Bezos acquired the Washington Post for $250 million, then eBay founder Pierre Omidyar promised to spend a similar amount on a brand-new media entity called First Look Media.   Google so far as done nothing to give back to the industry.

Many European countries are not taking the advertising market share of Google laying down.  Google generates an estimated €1.5 billion, or $2 billion, in France.  The government is irate that the company pays almost no taxes in France, and instead is going to Belgium and Ireland. “We want to work to ensure that Europe is not a tax haven for a certain number of Internet giants,” the digital economy minister, Fleur Pellerin mentioned.

Article continues here

This Publishing/Writing Blog is available on Kindle 🙂

12/19/2009

The Media Company Of Tomorrow


With the transformation taking place in the publishing industry and the seemingly indisputable decline in print revenues, one wonders what the future of the media company will metastasize into.

Tony Silber of Folio Magazine relates what F+W Media Company’s CEO David Nussbaum
thinks the future media organization will be like:

‘One of our keynote presentations at the virtual FOLIO: Show Virtual last week included a panel of leading executives in the industry, including F+W Media CEO David Nussbaum.

Nussbaum gave one of the most provocative responses during the hour-long discussion, essentially saying that print advertising is an irrevocably declining source of revenue, and that companies that don’t recognize that do so at their own risk.

As it turns out, Nussbaum jotted down some notes to the questions I asked the panelists to consider in advance. Here are Nussbaum’s notes, with the questions that prompted his thoughts.

Q: When will the industry see some recovery?
A: This is totally unclear, but there is a sense that we have found the bottom of the market. However, with consumers still under siege (credit difficulties, high unemployment, no or low salary increases), it is hard to see what the impetus will be for growth.

Q: What will the recovery look like?
A: I don’t think it will be ad driven. But rather, we’ll see an expansion of marketing budgets looking for “non-traditional ways to reach buyers.” That will mean everything from custom content solutions, to one-to-one marketing, and expanding our portfolio around our core brands to create new, profitable products and subscription services, like Webinars, which are a growing part of our business.

Q: Will we see the robust industry health of 2005 to 2006 again?
A: I really don’t know.

Q: How will the business be different going forward?
A: In a few ways.

1. Print advertising will continue to be a no growth-to-declining business.
2. Events will rebound, but event producers will need to find a way to mitigate the high costs of exhibiting.
3. High quality and unique content, always at a premium, will be even more important as the Holy Grail of dollars for content will become even more intense.
4. Staff size will be kept lean, with those making it through the recession owning a wider variety of skill sets than those who came before. We need to be bringing new talent to the industry from outside our standard recruitment channels, and producing new ideas across e-commerce, retail, social media. There’s no limit to what we can learn.
5. Online advertising rates will continue to erode, but engagement will be at a premium.
6. Social networks, location-based marketing, custom content selection—these will all be critical for future media providers. And those who aren’t already building their communities may get left behind.

Q: Are media companies being disintermediated on the reader side through social media and blogs?
A: Yes and no. Yes in that there is much more competition for community building, for content presentation and for lead generation. No in that media companies are becoming strong participants in the blogosphere and in using social networks to both build community and drive traffic to sell stuff. F+W and other enthusiast media companies have a unique advantage in that our communities already exist, created around a common interest or goal. Being of and in the community, and respected and trusted though our own blogs, positions us well. Social media interactions are the key.

Q: What are the most important things media companies can do now? Adjust organizational structure? Change their approach to content creation? Layoffs? Debt reduction?
A: Media companies need to find a way to focus as vertically as possible, make community building the core of existence, ensure that staff is cross-trained, fleet of mind, and willing to adapt to radical change comfortably. Portfolio management is critical. Organize your resources around the core communities and properties with the most opportunity for success.

Q: What will the media company of 2012 look like?
A: Community focused, really good at demographic analysis, excellent at nurturing around verticals, diverse in terms of product offerings and delivery systems, Web centric, advertising will be considered gravy, customers pay for content and contribute to the creation of content.

Q: What is the most important lesson og the 2007-2009 recession?
A: The sheer desire of people to adapt and to participate in tomorrow. I have really been impressed with the willingness of people to learn and to change.’

Create a free website or blog at WordPress.com.

%d bloggers like this: