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Shattered-Mirror-Report-on-news-media

Report on the state of the Canadian News industry

     
2:39 am on Jan 27, 2017 (gmt 0)

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Here is the CBC news story that explains the gist of report better than I can.
[cbc.ca...]

My favorite recommendation:
Among the recommendations is a significant change to the tax law that would require many advertisers to pay a 10 per cent levy to Ottawa if they place ads in non-Canadian digital services, such as Google and Facebook. That's expected to produce a federal revenue stream of up to $400 million annually.


But wait there is more:
The cost of this and other new entities being proposed would be covered by an arm's-length fund created by the federal government, with a startup taxpayer investment of $100 million and funded in future years by tax revenues collected under the new advertising rules.


Here is the report in its entirety. I, so far, have only had time to skim through it. But there is a lot of interesting information.
[documentcloud.org...]
8:26 am on Jan 27, 2017 (gmt 0)

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Good find! Same thing is happening on an even greater scale with the BBC (Biased Broadcasting Corporation) here in the UK.
3:54 pm on Jan 27, 2017 (gmt 0)

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You need to hear the CKNW interview about this. I had a bad memory for numbers, but Google and Facebook are around 80% of ad revenue with 20% or less going to the news sources. Geez, when online advertising is largely Google and they are making this split such as it is, the guy is right. The industry is doomed. Newspapers didn't have a middle man to pay a vast majority of their advertising revenue to. It's not sustainable, obviously.
4:31 pm on Jan 27, 2017 (gmt 0)

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The situation is worse than that, these media companies believe that they can simply remove the adsense and fb ads from their sites and sell the invetory directly to advertisers and in place receive 100% of the ad revenue. Which is true on the surface, but fundamentally false as advertisers are going to be less willing to pay top dollar to advertise on one single website.

With remarketing and other similar strategies it is no longer the content that is the focal point of the advertisers strategy, it is the user. This is specially true for news media website where there is no specific focus or niche to cater to. The typical user, will check some headlines on their phone while commuting to work, then move on to FB and then to some other site. Granted, they may be back tomorrow. But yesterday will long have been forgotten. Meanwhile, G & FB ads are in their face throughout the entire commute. I doubt that the advertisers are willing to pay top dollar to get only a split seconds glance from a user. So they will get 50% of what FB and G get, still better than 20%. But then they have to sell the ad inventory. So how much is left.

These media execs have been a sleep at the wheel for more than a decade, they are finally starting to wake-up but the ship has sailed. Let them fail, and definitely don't throw our taxes dollars at them so that they can pay themselves bonuses while laying off the actual content creators.
5:14 pm on Jan 27, 2017 (gmt 0)

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How can a newspaper (think paper) compete/understand better the online advertising model than Google and to a lesser extent FB? Newspapers are totally out of their league. Cannot compete I believe is what you're really saying. Direct selling ad for a newspaper vs. a website is about as apples and oranges as it gets. Greed is such a funny thing. Fake news is going to get more real because Google and FB are not going to release their grip.