Google is keen to replicate its advertising revenue sharing model with news publishers as well provided they use the company’s new digital subscription tools.
The business plan is also a lot similar in that Google would be relying on its extensive user info coupled with AI-based programs to help publishers identify target subscribers. This way, Google gets to earn a percentage of the subscription fees that the publishers get, which is similar to the Mountain View company’s successful AdSense business model.
Also, while a 30 percent cut in favor of Google was being speculated, Google has refuted such claims, saying instead the company is yet to reach anything conclusive on that. Google, however, has confirmed the revenue sharing model will be modeled to favor the publishers.
Google typically shares more than 70 percent of revenue with its advertisers. And the company said publishers will be getting more than that but stopped short of offering any definite figures.
Such an arrangement will also serve as a new means of monetizing on the treasure trove of personal user data that Google has been collecting over the years. It could be a win-win situation for both the search giant as well as the publishers but so long as the latter gets to have direct access to its subscriber base. Google though chose to play down its role in the entire arrangement, claiming it would be the publishers that would be calling the shots.
Facebook too has a similar revenue sharing agreement with publishers though Google chose to uphold its method claiming they won’t seek to have any control over the publishers.
Similarly, Google will also have no control over any subscribers even if they have brokered any deal.
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Publishers, however, aren’t overly excited with the latest Google plans, voicing concern instead of how things might pan out for those who fail to comply with Google’s terms or opt out of the deal at a later stage. Many publishing houses including the News Corps and the Wall Street Journal recall how their publications were kept out of Google searches once they chose to drop off the ‘first click free’ model that required them to provide at least three free news for them to access Google search for free.