South Africa's media landscape is in turmoil as Google and Meta's stronghold on digital advertising has reached a staggering 97% market share in the country. This dominance has led to a severe threat to press freedom and the very existence of the media industry.
The chief executive officer of News24, South Africa's largest digital news publisher, highlighted the dire situation during the Competition Commission inquiry. He emphasized that Google's dominance in digital advertising has surpassed what the apartheid government could achieve, silencing critical voices and weakening democracy.
The digital advertising revenue market in South Africa has seen significant growth, reaching $767 million in 2022. However, Google and Meta's control over 97% of the market has left publishers struggling to survive on mere 'crumbs' of revenue.
Despite Google's claims that it does not profit significantly from news content, industry experts argue that the tech giant benefits immensely from media content without fair compensation to publishers. The lack of transparency in how tech companies value media content has left the industry in a precarious position.
Publishers like News24 are heavily reliant on Google for traffic, with a significant portion of impressions and revenue being monetized by the tech giant. Changes in Google's algorithms can have detrimental effects on publishers, leading to sudden drops in traffic and financial instability.
The media industry in South Africa is calling for fair compensation based on the value that platforms derive from content. Without adequate remuneration, the future of high-quality independent news is at risk, posing a threat to democracy and public access to reliable information.
The ongoing inquiry into Google and Meta's dominance in digital advertising is shedding light on the urgent need for regulatory measures to protect the media industry and ensure a sustainable future for journalism in South Africa.
