Google’s Experiment Shows News Content Has Little Impact on Revenue

The research conducted by Google demonstrated that news content produces minimal influence on advertising revenue which will influence publisher agreements throughout the world.

Google conducted a two-and-a-half-month EU experiment that proved news content fails to affect advertising revenue at the company. Google blocked news content in Google Search and intensified the restriction for Google Discover and Google News for 1% of users over eight European Union regions that included the Netherlands and Belgium among others.

Google showed no material changes to its overall ad revenue even though its daily active user base reduced by 0.8 percent. Google conducted the experiment due to the European Union Copyright Directive (EUCD) that provides press publications rights to control their content. The findings from the study might shape Google's future decisions about content payment for licensed publications in the EU because it currently has agreements with 4,400 such publishers.

The analyzed data carries possible ramifications which extend outside European Union boundaries. Google has dedicated $100 million to support Canadian local news through the Online News Act in Canada. Indian publications urge Google to implement similar payment programs because they assert that Google gives Canadian news organizations such opportunities. Google could change its licensing arrangements in India if it follows the same experiment thereby impacting the financial outcomes for publishers.

The search advertising business sector continues to generate the most revenue for Google as revealed in its recent financial reports. The experimental data indicated that Google Search revenues rose slightly while the use of Discover ads decreased minimally.