Google Claims News Has Little Value to Ad Revenue - Search Test Results

Google's News Experiment and Its Implications

Google recently concluded an experiment involving the removal of news results from its search engine for a segment of its user base. This test, affecting 1% of users over a 2.5-month period across eight European markets, was undertaken to assess the impact of news on Google’s advertising revenue.

The Core Findings

The company asserts that the experiment’s findings demonstrate a negligible financial contribution from news content to its overall ad business. Google initiated this trial due to evolving European copyright regulations, which mandate compensation to news publishers for the utilization of content snippets.

A central question driving the experiment was determining the actual monetary value of displaying news within search results. Google contends that news publishers significantly inflate their perceived worth to the company’s operations.

According to Google’s report, the observed value derived from news presentation “could not be statistically distinguished from zero,” irrespective of individual countries analyzed.

Leveraging Results in Negotiations

Google intends to utilize these results as a bargaining chip in ongoing payment discussions with European news publishers. The tech firm is navigating a delicate situation, however.

Previous antitrust rulings in France have resulted in substantial fines for Google, specifically concerning its handling of news content and copyright negotiations. A fine exceeding $500 million was levied due to its approach to these negotiations.

Regulatory Scrutiny and Caution

Germany’s competition authority is actively investigating Google’s practices related to news and has already compelled the company to implement changes. Consequently, any attempts by Google to diminish the impact of EU copyright law by devaluing news could trigger further regulatory penalties.

Initially, France was included in the experiment, but this portion was halted following a warning from a French court regarding potential fines for violating a prior agreement with the antitrust authority.

Significantly, Google also refrained from conducting the test within Germany.

Markets Involved

• Belgium
• Croatia
• Denmark
• Greece
• Italy
• Netherlands
• Poland
• Spain

The outcome of this experiment is poised to significantly influence the future of news integration within Google Search and the ongoing debate surrounding copyright and publisher compensation.