Alphabet, Google’s parent company, plans to pay publishers worldwide for news articles from their media titles. Some publishers are excited, but not all.
Google top man Sundar Pichai dedicated a special blog to it on Thursday. Google wants to compensate publishers for 1 billion dollars for the visitor flows that reach the independent news sites via the search engine. The compensation covers a period of three years. Pichai writes that he believes that a ‘vibrant news industry is essential for a well-functioning democracy’.
The compensation is linked to a new product: News Showcase. Exactly what that will look like is still unclear. It should be available indefinitely via Google News on Android and later perhaps on Apple devices.
According to its own estimates, the search engine sends people 24 billion times a month to websites of newspapers, weekly and monthly magazines or media that operate entirely online. The working method is simple: someone enters a keyword on Google and clicks on the News option. In this way, news hunters can search the search engine for an innumerable number of articles. Without having to pay.
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This leads to frustration among the traditional media, which have seen their advertising revenue from print decline for years and which have no alternative revenue model. Publishers have long insisted on being compensated for their news that is freely accessible via Google. How the USD 1 billion will be distributed and how much each publisher will receive from Google is still unclear.
The initiative can be seen as a charm offensive to the traditional media. For Google, the step may be necessary. The pressure on the company is increasing. The tech giant is under fire from European regulators, who consider the company to be too powerful.
A total of 200 publishers, from Argentina, Brazil and Canada among others, have committed themselves to the news product. In Europe, Germany will be the first stop. There, Google has already enticed the necessary parties to step in. German newspapers such as Handelsblatt, Frankfurter Allgemeine, Die Zeit are participating, as are the weekly magazines Der Spiegel and Stern. Der Spiegel’s publishing house, Spiegel Group, was delighted. According to the publisher, Google shows that it is ‘serious when it comes to supporting quality journalism’.
With its own product, Google itself can dictate the general terms and conditions and undermine legislation.
ANGELA MILLS WADE
DIRECTOR EUROPEAN PUBLISHERS COUNCIL
Germany is followed by Belgium and the Netherlands. According to a spokesperson in Amsterdam, Google is working on partnerships with several publishers in both countries. Mediahuis, which owns among others De Standaard and the Dutch NRC Handelsblad, thinks it is too early to react. DPG Media, formerly De Persgroep, announces that it does not participate in the initiative. In a reaction, the company says it ‘hopes that a minority’ will follow Google’s example.
The European Publishers Council (EPC), which includes Belgian and Dutch publishers, reacted critically. With its own product, Google itself can dictate general terms and conditions and undermine legislation, while claiming to help finance news production’, says executive director Angela Mills Wade.
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Mischa Schreuder (42) is creative director at Publicis Groupe Nederland. He likes to read about new technologies in the magazine Wired. No distractions from your mobile, but just going with you into the future through an old medium.
Photo: Mischa Schreuder with his daughters Jade and Jazz.
At Publicis Groupe Worldwide we currently work with a business tool called Marcel, which links 80,000 employees worldwide. All briefings can be found here, allowing us to make easy use of each other’s expertise.
My favourite clothing brand is Patta. They have their own style and the story behind the men who set up the brand appeals to me as a creative person.
My favourite advertising campaign is The Moldy Whopper, which shows that Burger King only works with fresh produce. The moldy process of the natural Whopper has been beautifully photographed and captured. Fernando Machado (global CMO of Burger King, ed.) dares to make these kinds of choices, so that the brand is embraced by both colleagues and consumers.
International agencies such as Marcel Paris, Forsman & Bodenfors, Publicis Italia and Droga5 show the difference in their campaigns. One agency does this by really being in the culture, the other with a great product. Everything they make touches you.
My favourite marketer is Fernando Machado of Burger King. I recently had the honour of speaking to him at a meeting of Publicis Worldwide. He gave a great presentation, explaining in five minutes what Burger King stands for. He sees flawlessly what does and does not fit the values of his brand.
With my children, twins of 7 years old, I like to watch Victor Mids. They love him. The conjuring tricks they then try themselves, no Netflix can compete with that.
At Publicis Groupe we work a lot for social problems, which we can help solve through creative ideas. For example, it’s great to see how you can combat loneliness in the elderly with a good idea or how people in the care sector can become proud of their work again.
My favourite podcast is Ted Talks, lovely to listen to. The conversations really make you think about where the world is going. Recommended is the episode with Tristan Harris on The Social Dilemma.
Wired is my favourite magazine. I read all about gadgets and technologies online, but sometimes it’s great to have a magazine in your hands. No distractions from your mobile, but just going along in the future through an old medium.
I see it as my challenge to keep innovating and challenging myself. It is important to gather young talent around you that is better than you, so I try to do that as much as possible. A lesson I learned from the late Béla Stamenkovits, I will never forget.
In My Marketing we ask colleagues about their marketing favourites, annoyances and challenges. The section appears online every Monday and Thursday.