Why is $300 million the new black? Because that is the amount that both Google and Facebook have each pledged to spend on initiatives for news publishers, both over three years.
For one ad agency veteran who is now a board member at one of the world’s largest news organizations, that may not be enough.
“I do wonder from a value exchange point of view if what the news organisations produce isn’t worth a lot more from $300 million each to Google and Facebook in terms of the revenue they create,” says former GroupM chief digital officer Rob Norman, now on the board at BBC Global News, in this video interview with Beet.TV.
Norman was asked about inequity in the power relationship between technology and social platforms, on the one hand, and news providers on the other.
It is a mutually beneficial relationship, with most publishers having used social to gather large audiences. But those publishers have persistently claims the platforms should do more to recompense them.
“My perspective on this is that the value exchange has been a bit one-sided, that – economically, at least – that the platforms have got more out of the publishers than the publishers out of the platforms,” Norman adds.
“I would prefer (that the) monetization that’s created by that audience was shared more equitably by the platforms with those organisations. The amount of revenue that’s accruing to the original publishers from the platforms, I think, is not enough.”
Norman says that access to quality news would be restricted if publishers are forced to put up hard paywalls.
This video is part of a Beet.TV series exploring the dynamic news landscape and opportunities for marketers. The series is sponsored by CNN. For more from the series, please visit this page.
