Google and Facebook have been caught into severe cases of Anti-trust violations. As previous week holds, state attorney generals which are led by New York and Texas announced their initial investigations. All that against Google and Facebook for their primitive anti-trust violations. As to history, no society or any organization has ever centralized Control of Information.
Like it is done in Big Tech, is one of the first American strikes to the problem. The Great Breakup of Big Tech is now Finally beginning and it has just started.
The Great Breakup of Big Tech is Now Finally Beginning
This is a big deal. Tech Journalist Kara Swisher along with Scott Galloway mentions it in the podcasts. Google and Facebook seemed to be the most affected and blamed. As they apply their control of the flow of info to increase ad revenues. While in turn, it is killing thousands of newspapers in the country, just like that.
Reason for Great Breakup?
There are a lot of consequences that affect the market industry of the internet. Forwarding it to Google and Facebook, we get a lot of reasons to think so. As It Relates to it much. For the last few years, Facebook along with Google became a wide platform for marketing. As millions of users stay online at every second.
That is a pretty big audience. While most ads appear on them, it did kind of killed the life of newspapers. As most of them are down, around the country, even in the world. Google’s Advertisement strategies challenge almost all potential competitors in the area. You do know the answer here, as to what will happen to them.
Journalism jobs went down too quickly
Google and Facebook’s Ad marketing campaign made journalism pretty hard. Almost for any country in the world. This alternately affected around 2000 countries, which took away their daily newspaper. Even, the majority of journalism jobs have been ripped off completely. The great breakup of big tech as it now surfacing up.
Also, marketers want clear data to rise in their plans. The only day to do it is only through the online digital world. That is the internet. As clearly, a bigger part of the audience stays in this section.
Why only Google and Facebook?
The whole idea might seem like nonsense. Google controls the whole internet. OK, only the surface. Aside, Facebook contributes to most of the social media stories and news. Who would want a newspaper if they already have everything in their hands, just a few clicks away? Even with lesser costs? Pretty much everyone.
While on the other side, newspapers and journalists faced a good threat from this strategy. Declining marketers and advertisers that are willing to pay for the ads, through newspapers. Lesser sales evenly. And that is how they came down with no option, but to just decline and quit.
No one wants to advertise
Advertising is a real sick problem, as to waste time on useless videos is not worth. Although, this is the original income of media platforms. As they don’t mint money. Advertising is none critical to give the press a financial lifeline, aside from one shielded by state. Ads form the beginning provided financial help. As it continues now too.
But we cannot do anything about it. As journalism would not run without advertising. Although, Google and Facebook still earn big bucks from it. Google will reach the $110B mark this year, Facebook already at $60B. There was a time when this money went to the publishers. Not now. Sad!
Google and Facebook’s control on Advertisements Revenue
Not to be rude, but Facebook mostly runs on ads. While Google has its line of business. Other than the Google Adsense and the internet itself. It has around 8 products that billions use. Even Facebook has a minimal 4 products common among billions too.
This is a good stream of income. When it comes to ads revenue, the primary works involves you. As the ads come in front of you to be seen. And then your ideal task gets continued, like chatting or mostly watching a YouTube video.
But this is their hard work income. Maintaining a huge market of Ads and maintenance all over the platform with billions using it. It is no piece of cake at all. But Google and Facebook are getting more than they actually deserve. All of the revenue. Even very important analytic data.
Google and Facebook Ad revenue income revealed
While Google and Facebook offer a lot of money to the marketers who do the hard work on the site. But instead, they do get more of it. As you will charge a brand for its ads with the right amount of money. If and only if you know how much views it will get from online. Else, you can’t think of doing that.
Google and Facebook know how to get better ad views in the least time. Thus they can charge a good sum for the ads and maintenance. This makes them extremely powerful on the ad site, literally Gods. Google and Facebook do have the power to sell anything. Anything!
Imbalance of power among Google and Publishers
Google is a tech giant, as it sounds like one. While Facebook now has reached similar heights with its upcoming crypto coin. Read here, Facebook’s new Cryptocurrency Libra: All you need to know. But what role do publishers play here? This explains internet business to a good amount.
As publishers and writers need Google and Facebook. To distribute their content and get a good amount of views. More the views, the better the ads get spread out. And there comes the juicy money from ads.
While on the other side, Google and Facebook do not need the publishers to that much. They do need them to keep the audience numbers to the top. Since this is what makes the Advertisements from different brands bring in the juicy money. In this, Google wins against Facebook.
The income balance is pretty much unbalanced. For example, Google messed up the Wall Street Journal’s search ranking in the index. This drastically reduced the income of the site, by around 44%. Similar happened with the incoming traffic. But nothing happened to Google, it still did continued earning well.
What does this all prove to publishers?
It proves that Google and Facebook can take care of their hard work earning. And then do whatever they want to do with it. They can force the publishers to hand their data to the duo, else the two can hamper with their earning.
It even includes the huge traffic, audiences, important content and lot more. On the other hand, the publishers are just left with poor choices, nothing else. This gets worse, when Google and Facebook compete for ads revenue. As to which platform is the best for advertising and market growth. They do force writers to hand their data, subscribers data and views for their own gains. Also, this is what the advertisers really want like anything. Thus, without the great breakup of big tech, publishers won’t be at a good ground.
Do all these relate to declining of newspapers?
In a simple sentence, it does. In complex words, it had to. But to the point, it currently is doing a lot. Due to increased control of the audience in the online world, newspapers don’t find enough advertisers. As this pulls up their 70% of income. Now that has moved up to the digital world on a larger scale.
Google and Facebook get their newsfeed updated within seconds. That is a tough speed to beat via plain newspapers. While Google and Facebook earn a lot from these. But they do not pay the publishers (and even writers) a good amount of money on the first hand. On simple terms, they earn money from other people’s hard work. This is not fair at all.
Can it be restored?
Democratic institution’s strength can be restored only by specific onboard control of the revenue income. That can be done by a strong set of Antitrust suits, regulatory choices, and options. Aside from legislation creating a bridge between the companies can bring down the competition.
The proper regulation of the data can restore the flow of ads among the people. As those people will be able to get their fair share of income for the hard work they do. While the great breakup of big tech might help in restoring it better.
Antitrust enforcement and investigations.
Although Trump enforcers had proved to be the least useful. But Antitrust enforcement should come from the federal government instead and are led by states. The republican and Democratic Attorney Generals of Texas and New York have been good informal leaders. They seem to be mostly bipartisan investigation leading.
The state attorney general mentions an investigation which is led by David Cicilline. This kind of leadership suggests that the rule of law should be brought back into the American business. Countries like Germany, France, India, Singapore, Russia, and most countries will have these investigations along with hearings.
Tech Companies like Google and Facebook had become too powerful on the heights. As they do control a larger part of the audience online. People musk work up to the government to make sure they stop their cheats. Regulating them in a controlled way is very important. Since if not done so, they might become our next power.
Google and Facebook might hold power over us, choosing what we might see around. There are a lot of people who are fighting for this. As this has to be made right. At all costs. The great breakup of big tech has just begun to stop this uncontrolled Ad revenue steal.