Media companies are having a hard time trying to get people to pay for digital news. When there are so many sites that just provide headlines and a few paragraphs of sensational context (which is what most people want, anyway), it’s difficult to convince readers that “news” is a product that’s worth any money.
That’s why media companies have come to rely on advertising so heavily. Right now, 69% of all domestic news revenue is tied to advertising. And how do media companies ensure that they get the most potential exposure for advertisers? They bring in traffic. Lots and lots of traffic.
Facebook is responsible for a huge amount of that traffic, so it should be no surprise that the social media giant is enticing publishers with promises of lots of traffic and engagement in exchange for a deal in which, according to The New York Times, “media companies would essentially be serfs in a kingdom that Facebook owns.”