Nieman Foundation at Harvard
HOME
          
LATEST STORY
Newsonomics: The McClatchy auction ends not with a bang, but only more whimpers
ABOUT                    SUBSCRIBE
Oct. 8, 2019, 10:37 a.m.
Audience & Social

Last year a group of small advertisers in California sued Facebook, claiming that it massively overestimated video ad viewing time (by as much as 900 percent) and failed to disclose the miscalculation once people inside the company had discovered it. During this period, company executives were also heavily promoting video at news industry events — contributing, as I argued last year, to publishers making disastrous “pivots to video” (soon followed by accompanying editorial layoffs) because they believed Facebook’s data was better than their own and that it showed a huge audience for news video waiting to be monetized.

That advertiser lawsuit has now been settled: The Hollywood Reporter reported Monday that Facebook agreed to pay the advertisers $40 million, though the company maintains it did nothing wrong.

Twitter, on the other hand, is, uh, less convinced of Facebook’s innocence in the matter — and many pointed out that while the advertisers are getting a (small, in Facebook terms) settlement, the journalists laid off in all that video-pivoting are getting nothing.

Separately, Facebook announced Tuesday that it’s giving $300,000 to European news publishers to help them experiment with video.

Show tags Show comments / Leave a comment
 
Join the 50,000 who get the freshest future-of-journalism news in our daily email.
Newsonomics: The McClatchy auction ends not with a bang, but only more whimpers
The hedge fund Chatham Asset Management reeled in its prize, as expected. But now what does it want to do with it?
Hundreds of hyperpartisan sites are masquerading as local news. This map shows if there’s one near you.
We found that while left-leaning sites prioritize statewide reporting, right-leaning sites are more focused on local reporting, indicating the potential for these sites to exacerbate polarization in local communities.
One group that’s really benefitted from Covid-19: Anti-vaxxers
Plus: How a fake news headline came to be (there are no “Obama-Soros Antifa Supersoldiers”) and trends in Covid-19 misinformation.