Facebook unveils $100m support package for news industry
Facebook today said it will invest $100m (£80.6m) to support the news industry as the coronavirus crisis decimates advertising revenue.
The social media firm said $25m will be given as emergency grant funding for local news through the Facebook Journalism Project, while $75m will be granted as additional marketing spend for news organisations around the world.
The pandemic has prompted a sharp decline in advertising spend. Roughly 70 per cent of buyers have already paused or adjusted their planned spend, according to figures from the Internet Advertising Bureau.
Facebook said the falling revenue came “at a time when journalism is needed more than ever”.
“Local journalists are being hit especially hard, even as people turn to them for critical information to keep their friends, families and communities safe,” the firm said.
The first round of grants distributed $5,000 to 50 local newsrooms across the US and Canada. The funds are intended to support increased frequency of funding, a crackdown on misinformation and serving vulnerable groups.
“This money will not only help keep journalists reporting right now amidst the crisis, the funding will also fuel opportunities for local media to accelerate business transformation toward a more sustainable digital footing,” said Nancy Lane, chief executive of US trade body Local Media Association.
The grants build on Facebook’s commitment to donate $300m to local news publishers over a three-year period.
Nevertheless, Facebook and Google have come under fierce scrutiny for their dominance of the digital advertising market, which critics say has crippled the news industry.
In December the Competition and Markets Authority warned rivals could no longer compete with the so-called duopoly “on equal terms”, while their market power had harmed news publishers to the “detriment of broader society”.