Facebook & Google will eat up 70% of advertising revenue by 2020
Press Gazette, a UK-based trade website for newspapers and magazines, is launching a campaign to stop Facebook and Google from destroying the journalism industry.
According to Press Gazette, Facebook and Google have created a strong monopoly in the advertising industry of UK. Owing to this monopoly, the journalism industry is badly affected as a major chunk of advertising revenue is going to this duo.
The advertising industry of UK was 20 billion pounds in 2015. In the past decade, the revenue sharing to the newspapers has gone from half to one-tenth. This is an alarming situation for publishers.
Press Gazette said, “The Government would not allow such a duopoly to stand. Campaigners would call for them to be broken up in the name of media plurality.”
Due to dip in revenues, a major chunk of news publishers are slashing the salaries of employees and the number of journalists being employed has been thinning down as well.
In the past one decade, the newspaper has increased their reach and readership but this scale hasn’t positively affected their revenue graphs.