Apple now won’t kneecap the ad tech industry — for all the good and bad that implies — until early 2021. Publishers should use the extra time to get their data houses in order.
It now makes more revenue from digital than from print and continues to add new subscribers at a record pace. But its brutal COVID-driven drop in advertising will be echoed all across the industry.
When McClatchy declared bankruptcy in February, its debts were crushing, but its operating numbers weren’t so bad. But the coronavirus ripped away more than a quarter of its revenue in just a few weeks.
“You want to move your business and your model to the place on the media chessboard where the dollars are going to be going” — the TV money that will follow audiences to streaming.
By gutting local advertising overnight, COVID-19 has accelerated strategies — like cutting print days, corporate consolidation, or even closing down offices — that publishers had hoped could wait a while longer.
The coronavirus pandemic is proving the value of local news to millions of readers, driving up subscriptions. But the advertising collapse is knee-buckling. “If it’s a couple of months, we’ll make it through. If it’s six months, all bets are off.”
Former Chartbeat CEO Tony Haile hopes he’s found something at the intersection of ethical adblocking and news-flavored digital wellness. “It’s not just ‘Can you get rid of ads,’ but ‘What does a better internet look like?'”
Republicans and Democrats are (surprisingly!) teaming up to help news organizations negotiate with the tech giants. But it’s unlikely to have a substantial impact on the dysfunctional relationship between publishers and platforms.
Benton, Joshua. "Don’t expect McConnell’s Paradox to help news publishers get real money out of Google and Facebook." Nieman Journalism Lab. Nieman Foundation for Journalism at Harvard, 8 Jan. 2020. Web. 23 Sep. 2020.
APA
Benton, J. (2020, Jan. 8). Don’t expect McConnell’s Paradox to help news publishers get real money out of Google and Facebook. Nieman Journalism Lab. Retrieved September 23, 2020, from https://www.niemanlab.org/2020/01/dont-expect-mcconnells-paradox-to-help-news-publishers-get-real-money-out-of-google-and-facebook/
Chicago
Benton, Joshua. "Don’t expect McConnell’s Paradox to help news publishers get real money out of Google and Facebook." Nieman Journalism Lab. Last modified January 8, 2020. Accessed September 23, 2020. https://www.niemanlab.org/2020/01/dont-expect-mcconnells-paradox-to-help-news-publishers-get-real-money-out-of-google-and-facebook/.
Wikipedia
{{cite web
| url = https://www.niemanlab.org/2020/01/dont-expect-mcconnells-paradox-to-help-news-publishers-get-real-money-out-of-google-and-facebook/
| title = Don’t expect McConnell’s Paradox to help news publishers get real money out of Google and Facebook
| last = Benton
| first = Joshua
| work = [[Nieman Journalism Lab]]
| date = 8 January 2020
| accessdate = 23 September 2020
| ref = {{harvid|Benton|2020}}
}}
