Coronavirus crisis: Facebook commits $100 million to help news outlets
What's the story
As companies brace for the economic fallout of the COVID-19 pandemic, Facebook is extending a helping hand to those who are at the center of all of it - news outlets. The Mark Zuckerberg-led social network has pledged to invest $100 million to support the local and global news industry, which is needed now more than ever, in light of this crisis. Here's more.
Impact
COVID-19's impact set to gut advertising revenues
The outbreak of COVID-19 is hitting several industries in many ways, but for publishers, who largely rely on ad-revenues, it's going to have a major impact. This is mainly because a number of companies are cutting their marketing budgets - and therefore the publishers' ad-revenues - in the wake of the financial uncertainty, business disruptions stemming from the outbreak around the globe.
Information
Global ad spend estimated to decrease by 3%
Research firm eMarketer has reduced its growth projections for global ad spend in 2020 by nearly 3%. Meanwhile, Reuters reported that the US advertising industry could alone lose billions of dollars in revenue.
Support
This is where Facebook's aid comes in
Now, to help news organizations in this time of crisis, Facebook has agreed to invest $100 million in journalism. Of this, the company says, $25 million will be provided as direct grants to local news outlets through the Facebook Journalism Project. Meanwhile, the rest will go as 'additional marketing spend' to help news organizations around the world make up some of the lost revenue.
Goal
Goal to ensure accurate journalism during this crisis
With this commitment, Facebook's goal is to ensure effective local journalism, which has become more important than ever in the wake of this crisis. Specifically, misinformation on the disease is on the rise, and if the ad-driven business model of local journalists' employers would be affected, they will not be able to carry out high quality and accurate reporting.
Details
Some news organizations have already been aided
Facebook says it has already extended finances to 50 newsrooms, including the Post and Courier, the Southeast Missourian, and El Paso Matters. "If people needed more proof that local journalism is a vital public service, they're getting it now," the company said, adding that many businesses have been affected but they are "in a more privileged position than most" and willing to help.
Information
Other efforts from Facebook
The commitment from Facebook comes just a couple of weeks after the company created a separate $100 million fund, most being in cash, to help small and mid-sized businesses affected by the pandemic.