Publishers Enter Uneasy Partnership With Facebook News
Despite longstanding criticism of Facebook's monopolistic influence and past disparagement by media leaders like News Corp's CEO, major publishers including News Corp, The New York Times, BuzzFeed News, Condé Nast, and Breitbart have entered a lucrative partnership to supply content to Facebook's new News feature, which aims to attract up to 30 million users and has reignited debates over Facebook and Google's dominance in digital advertising.
Facebook and Google collectively took in two thirds of digital advertising budgets this year.
But when media industry giants are threatened by the 800-pound gorilla, things can get awkward.
Facebook has been fending off criticism from old school publications for the better part of a decade. News Corp CEO Robert Thomson had some particularly choice words, calling Facebook “bot-infested badlands” and a platform for “the fake, the faux and the fallacious.”
These comments have aged like the finest milk, since News Corp announced that it would supply headlines to Facebook’s new News feature in the upcoming launch.
The new feature will “earn some publishers, like Thompson’s News Corp, millions of dollars a year for giving Facebook access to their work,” writes Paris Martineau at Wired. News Corp is far from the only publisher to partner with the social media giant; The New York Times, BuzzFeed News, Condé Nast and (more controversially) Breitbart are all included in the new plan, according to Martineau.
Despite the splashy headlines, the heralded News tab will be relatively limited in scope. Facebook hopes to see up to 30 million users (but only after the first few years).
The numbers may be limited, but the launch of the News tab has renewed the fierce debate surrounding Facebook and Google as a digital advertising duopoly.
Opposition to Facebook’s Monopoly is Nothing New — But It’s Growing
Publishers have not made it a secret that they oppose Facebook’s monopolistic influence as a tech platform turned quasi-publisher. Thomson’s words above are just a particularly vitriolic example.
Self-interested or not, the consensus seems to be there. “Colloquially, and in the press, Facebook is a monopoly,” writes Dina Srinivasan in the Berkeley Business Law Journal. “Members of Congress, reporters, academics, and even initial founders of Facebook are speaking of Facebook’s monopoly power and questioning the need for regulation.”
Whether from pressure from the media industry or from consumer interest, Facebook (and its Big Tech cohorts) faces a number of investigations, including an antitrust investigation from the Federal Trade Commission and a “sweeping review of the power and dominance” of tech companies from the Department of Justice. According to a CNBC poll, over half of tech executives believe that Facebook is the most likely of the FAANG companies to face punitive action as a result of these investigations.
For its part, Facebook hasn’t exactly embraced the role of publisher, but it has become less coy about the powerful position its platform holds in content consumption. In a recent court case, Facebook argued that its decisions to censor information are protected under the First Amendment. In public, Facebook denies the publisher label.
“What we’re navigating is a space where the language we have to date does not match the technology that has now been developed,” journalism professor Kathleen Culver told The Guardian last year. Facebook must take ethical considerations into account, Culver said — but it can’t necessarily be held to traditional terms like ‘publisher.’
All of this prefaced the launch of Facebook’s News tab, which Facebook has not pulled back from despite the pending investigations. The feature launched on October 25 to a small number of US users, with general, topical, diverse and local news.
Related
Facebook Picks Friends Over Publishers - Winmo
Facebook's new algorithm update prioritizes personal posts from friends and family over public content from businesses, brands, and media, causing significant declines in referral traffic for publishers—especially smaller ones and those heavily reliant on Facebook-driven video traffic like Buzzfeed—due to a shift in focus away from sponsored and suggested content in the News Feed.
How do "Big Tech" Brands Invest in Programmatic?
House lawmakers are advancing six antitrust bills aimed at breaking up and regulating major tech companies like Google, Apple, Amazon, and Facebook by restricting their dominance, increasing merger scrutiny, banning self-preferencing, and enhancing data interoperability, but despite these efforts, current trends suggest these changes may not immediately alter how Big Tech invests in programmatic advertising, with the full impact to be clearer in the coming months.
10 Facebook Advertisers to Watch in Q3 2022
In Q3 2022, notable Facebook advertisers include CareerBoutique, which increased its Facebook ad spend 19-fold compared to 2021 to promote job listings; Ahold Delhaize, allocating 89% of its $86 million U.S. supermarket brand Food Lion ad budget to Facebook and Instagram; Kueez Entertainment, investing exclusively in Facebook and Instagram ads to promote its publishing platform; Mail.ru Group’s MY.GAMES, dedicating 38% of its 2021 total ad spend to Facebook and Instagram for game promotion; and The Home Depot, a major home improvement retailer leveraging Facebook ads as part of its marketing strategy.
4 Top Pharma Advertising Trends of 2021
In 2021, pharmaceutical companies significantly increased their advertising budgets to $6.58 billion, focusing heavily on digital channels—especially Google search ads due to high health-related search intent—and expanding their presence on social media platforms like Facebook and Instagram through both branded and unbranded influencer marketing to engage younger audiences amid heightened public health awareness.
Biggest New CMO Hires: Q4 2022 - Winmo
In Q4 2022, several brands, including MANTA and Kalderos, made significant new CMO hires to accelerate marketing efforts, increase digital ad spending, and target evolving demographics like Gen-Z, signaling upcoming agency reviews and strategic shifts to meet year-end sales goals and prepare for 2023.
Facebook Revenue Surges: How Super Niche Brand Advertising Adds Up
Facebook's Q1 revenue surged 46% year-over-year, driven by a 30% increase in average ad prices and a 12% rise in ads delivered amid booming eCommerce, but the company anticipates growth headwinds in the latter half of 2021 due to regulatory changes like iOS 14.5 and a potential post-pandemic shift away from digital shopping, prompting CEO Mark Zuckerberg to focus on expanding creators, commerce, and new computing platforms to sustain deeper user connections and economic support.