Google’s Mel Silva slams publishers’ ‘inaccurate numbers and unfounded assertions’, claims news searches only worth $10m
Google Australia managing director Mel Silva has hit back at claims the tech giant owes publishers up to $1bn in revenue, calling the figure ‘inaccurate’.
In a blog post, Silva said Google made just $10m in revenue from clicks on ads against news-related search queries in Australia and that any other figure is an ‘unfounded assertion’.
Should Google have to pay publishers the amount would be nowhere near the suggested $600m – $1bn says Silva
The fiery post from Silva opposed comments from News Corp Australia executive Michael Miller and Nine chairman Peter Costello who claimed that under the upcoming mandatory code which would see big tech platforms have to pay publishers for the use of news, Google would be looking at a $600m – $1bn bill.
Silva argued this wasn’t the case, saying the majority of revenue comes from searches with ‘commercial intent’.
“We don’t run ads on Google News or the news results tab on Google Search. And looking at our overall business, Google last year generated approximately AU$10 million in revenue—not profit—from clicks on ads against possible news-related queries in Australia. The bulk of our revenue comes not from news queries, but from queries with commercial intent, as when someone searches for ‘running shoes’ and then clicks on an ad,” Silva wrote in the post.
The Australian Competition and Consumer Commission (ACCC) is currently drawing up a code of conduct, under the instruction of treasurer Josh Frydenberg, to review the commercial relationship between Facebook, Google and the big tech platforms and publishers in Australia.
When the code is finalised it will result in a payment system whereby the platforms are forced to give publishers an as of yet undecided fee for the use of news. The code is based on a recommendation from the ACCC’s Digital Platforms Inquiry (DPI) which suggested a voluntary code be created and monitored to improve the power balance between the two industries.
“The mandatory code will have important consequences for Australians, including how and which types of news they can search and discover through Google. As we work with the ACCC and Government, as well as with media companies to build out new solutions to derive additional revenue, it’s important to base decisions on facts, not inaccurate numbers and unfounded assertions,” said Silva.
Silva has already said Google believes there is a substantial two-way value exchange already in place and doesn’t believe more needs to be done. She has also argued that the role of news on platforms is not one of commercial value, but educational, and said that publishers are already entitled to decide how they interact and appear on Google Search.
“We recognise the importance of news and are committed to finding new ways to support publishers,” said Silva.
If publishers believe their content is of such high value to Google, there’s nothing to stop them from blocking their content from being crawled by and appearing on the Google platform. it’s an easy change to make – but I can guarantee that publishers would lose far more than Google. Publishers know this — it’s why none of them have moved to do this.
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Well done Mel, publishers are pushing the proverbially up hill when trying to lay this on Google, Facebook on the other hand….What % of their users see and share news content and have facebook ads either directly or indirectly, and what % of Facebook users primary use the platform is to stay connected to the news…..
Still wish Google would pay their fair share of local taxes, revenue generated in Australia for Australians should have a degree of tax applied. The ‘licensing’ cost of the brand and platform which is set by Google should not in itself justify almost 90% of a cost base against local revenue. In fact i believe google Maps was, developed by an Au team do all other Google territories pay Google AU a fee for the use of maps?
Yes Google employs thousands locally but Google also benefits from these highly educated and trained workforce not only here but across their global network. Google also enjoys the infrastructure and stability of the Australian economy and infrastructure. All of this have in part be funded by Australian tax dollars. Google wants to be seen as a beacon of great corp governance and values, then set the example and use some of the billions of profit to pay local taxes.
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I wonder how much of that $10million was from news organisations trying to buy top spot against a breaking story?!
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Google writes $4.8bn says only $10m of it is relevant media/news…
https://www.afr.com/technology/google-australia-s-gross-revenue-dwarfs-tax-bill-again-20200514-p54t15
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Who’s being naïve Kay?
So, publisher content is only worth the clicks attributed to the ads you display against the content? Seems hardly worth exploiting it then.
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Aaaah, I get it now.
It’s all explained by “Google made just $10m in revenue from clicks on ads against news-related search queries in Australia”.
So it is VERY reassuring that Google DOESN’T charge for ads in news-related search queries that are NOT clicked on.
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One questions the quality and neutrality of advice the govt. and legacy media receive from their consultants and/or advisors regarding online search, SEO etc.?
They to seem to ignore their former ‘rivers of gold’ I.e. online real estate, auto, employment etc. portals impacting their revenue (unless they have retained an interest) with less support for journalism, reporting news and regions.
Google, Facebook etc. may well be the solution for local coverage, even a form of micro or local print with some potential monetisation, and compromise from audiences. Conversely, what if Google and Facebook did a short experiment i.e. neither indexing legacy media news nor real estate etc. portals?
The govt. risks creating medium long term damage for users while endeavouring to cater to the short term interests of legacy media?
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Hi Mel,
When Google starts paying tax properly in the country it earns the revenue in then it can start complaining about whether the content laws that they hijack to make their income from are proper or not. At the moment Google is a take all organisation, brutal in its take over tactics and brutal to all businesses who are forced to use it, yet refuse to pay any of the tax they earn to the communities which they earn it from, aside from tokenistic tree hugging foundations or other half hearted attempts to engender sympathy, pay your tax, the rightful amount in Australia before you start whinging about the laws here. Be a paid up in full citizen to earn the right to a seat at the table.
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