Google Gives Newsrooms Small Reprieve By Suspending Some Ad Fees

Google expanded its aid to media outlets on Friday by eliminating fees for publishers that use Google Ad Manager, a service that helps companies deliver online advertisements. The freeze will last for five months and follows the creation of an “emergency relief fund” for small, medium and local publications it launched earlier this week, along with a $1 million donation to other journalistic causes. 

The moves come as publishers are suffering from declining ad spending, even as the coronavirus pandemic causes a huge spike in news traffic. Already thousands of journalists have been laid off, furloughed or suffered pay cuts.

“During times of global crisis, people rely on quality journalism to stay informed and safe,” Google said in a blog post, adding that it will provide additional details on the announcement in the coming days. 

The efforts mirror those of Facebook, which last month unveiled a $100 million initiative to help media outlets. $25 million of those funds will come in the form of grants to local newsrooms; the remainder will come through ad spending. 

Prior to the pandemic, and even still, Facebook and Google have been vilified by many publishers for dominating the online ad market. Combined, the two tech firms reportedly command more than half of all digital advertising spending, leaving other outlets, including newsrooms, to fight over the remaining scraps.

Still, as reported by the New York Times, even Google and Facebook may suffer hits due to the COVID-19 outbreak. Though their combined advertising businesses have “roughly tripled” in the last five years, Facebook ad rates are currently at a record low, and some marketers are paring back spending on Google. 

That’s not to say their dominance will be diminished. “To the extent that people are still spending, it will be even more concentrated with Google and Facebook,” Nicole Perrin, principal analyst at research firm eMarketer, told the Times. “They are likely going to end up in a stronger position after all this is over.”

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