Google and Advertising: Digital Capitalism in the Context of Post-Fordism, the Reification of Language, and the Rise of Fake News', Palgrave Communications, Vol
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University of Birmingham Google and advertising Graham, Rosie DOI: 10.1057/s41599-017-0021-4 License: Creative Commons: Attribution (CC BY) Document Version Publisher's PDF, also known as Version of record Citation for published version (Harvard): Graham, R 2017, 'Google and advertising: digital capitalism in the context of Post-Fordism, the reification of language, and the rise of fake news', Palgrave Communications, vol. 3, no. 1, 45, pp. 1-19. https://doi.org/10.1057/s41599-017-0021-4 Link to publication on Research at Birmingham portal Publisher Rights Statement: Checked for eligibility: 08/08/2018 General rights Unless a licence is specified above, all rights (including copyright and moral rights) in this document are retained by the authors and/or the copyright holders. The express permission of the copyright holder must be obtained for any use of this material other than for purposes permitted by law. •Users may freely distribute the URL that is used to identify this publication. •Users may download and/or print one copy of the publication from the University of Birmingham research portal for the purpose of private study or non-commercial research. •User may use extracts from the document in line with the concept of ‘fair dealing’ under the Copyright, Designs and Patents Act 1988 (?) •Users may not further distribute the material nor use it for the purposes of commercial gain. Where a licence is displayed above, please note the terms and conditions of the licence govern your use of this document. When citing, please reference the published version. Take down policy While the University of Birmingham exercises care and attention in making items available there are rare occasions when an item has been uploaded in error or has been deemed to be commercially or otherwise sensitive. If you believe that this is the case for this document, please contact [email protected] providing details and we will remove access to the work immediately and investigate. Download date: 30. Sep. 2021 ARTICLE DOI: 10.1057/s41599-017-0021-4 OPEN Google and advertising: digital capitalism in the context of Post-Fordism, the reification of language, and the rise of fake news Richard Graham1 ABSTRACT Google’s dominance over the web allows it to dictate various norms and practices that regulate the state of contemporary capitalism online. The way in which Google 1234567890 operates as a company and generates revenue is often sidelined in academic discussions regarding the cultural implications of how its search engine functions. Almost 90% of Google’s revenue is derived from advertising, despite Larry Page and Sergey Brin’s original academic paper regarding Google in which they argue that advertising produces mixed motives that make it an unfeasible way to fund search engines. This article outlines how Google’s model of advertising reflects and encourages wider changes in capitalism as it shifts from its twentieth-century Fordist incarnation to contemporary Post-Fordist arrangements of labour. In doing so, this article analyses Google’s two main advertising systems, AdWords and AdSense, and proposes that these financial models have significant effects upon online discourse. In discussing AdWords, this article details some of the tensions between the local and the global that develop when tracing flows of information and capital, specifically highlighting Google’s impact on the decline of online language diversity. In outlining AdSense, this article demonstrates how Google’s hegemonic control prescribes which parts of the web can be monetised and which remain unprofitable. In particular, in drawing from existing studies, evidence is provided that Google’s AdSense programme, along with Google’s rela- tionship with Facebook, incentivised the rise of fake news in the 2016 US presidential elec- tion. This work builds on existing scholarship to demonstrate that Google’s economic influence has varied and far-reaching effects in a number of contexts and is relevant to scholars in a range of disciplines. As such, this article is intended as a discursive introduction to the topic and does not require specific disciplinary background knowledge. In doing so, this article does not attempt to provide the final word on Google’s relationship to digital capit- alism, but rather, demonstrate the profitability of a Post-Fordist perspective, in order to enable a wider engagement with the issues identified. 1 The University of Exeter, Exeter, UK. Correspondence and requests for materials should be addressed to R.G. (email: [email protected]) PALGRAVE COMMUNICATIONS | 3: 45 | DOI: 10.1057/s41599-017-0021-4 | www.nature.com/palcomms 1 ARTICLE PALGRAVE COMMUNICATIONS | DOI: 10.1057/s41599-017-0021-4 Introduction his article focuses on how Google generates revenue and The remaining 11.3% of Alphabet’s revenue represents the Tthe various significant ways in which this impacts upon the sales of apps and media content in the Google Play store as well as wider digital information ecology on the web. Search other smaller ventures such as certain Google branded hardware, engines have been addressed from a wide range of academic for example sales of Google Chromebooks and Pixel smart- perspectives including, but not limited to, computer science, law, phones. None of Alphabet’s other activities ‘meet the quantitative politics, information retrieval, and new media studies.1 However, thresholds to qualify as reportable segments; therefore, the the role that Google’s advertising business model plays within operating segments are combined and disclosed […] as Other contemporary capitalism is rarely addressed directly. This topic is Bets’ (Alphabet, 2017, p 21) These smaller subsidiaries, known as crucially important because it impacts a wide-range of phenom- other bets ‘Access, Calico, CapitalG, Nest, Verily, Waymo, and X,’ ena that might otherwise be considered non-economic, such as and other initiatives (Alphabet, 2017, p 21) have a combined general online language use, and the incentives underpinning a revenue of $809 million, which is only 0.9% of Alphabet’s total range of content, such as fake news. In order to situate these revenue, and have combined operating losses of over $3578 issues within broader trends in contemporary capitalism, this million (Alphabet, 2017, p 74). These divisions focus on a range article draws on Post-Fordist theory, which is outlined below, of projects from Calico and Verily’s biomedical research into placing it within a digital context. This perspective highlights the extending the human lifespan, Waymo’s self-driving cars, and X’s extensive influence that Google’s revenue model has upon digital Google Glass augmented reality headset. Whilst these kinds of culture. projects are covered more frequently in the popular press they do Alphabet, Google’s holding company created in 2015, is one of not contribute to Google’s financial success. the most valuable companies in the world.2 It has a market value In summary: Google generates almost all of Alphabet’s rev- of over $500 billion and in 2016 generated a revenue of $77 enue; almost all of Google’s revenue is made from advertising; the billion. Ask someone what Google does and they will likely reply majority of this advertising revenue comes from AdWords, i.e., that it is a search engine company. However, a more accurate sponsored links included in search engine results; finally, Google description is that Google is an advertising company. 88.7% of spends a great deal of its revenue on smaller ambitious ventures. Google’s revenue comes from advertising (Alphabet, 2017, p 22); This article draws from Post-Fordist theory to provide a historical although, as will be outlined below, Google’s modes of advertising and theoretical context for Google’s place in contemporary digital deviate significantly from any existing forms of traditional capitalism. In doing so, the article demonstrates the ways in advertising. The economic success of such a shift is producing which the Internet and the web have played a major role in the dramatically widespread effects within many areas of society. This changing flows of information, labour, and capital and outlines article addresses two in particular: the reification of online lan- how at the heart of this change is Google: both the company and guage and the rise of fake news. There are many other important its products. The first section of this article focuses on AdWords, impacts of Google’s advertising programmes, however, focusing arguing that it constitutes a global linguistic market and typifies a on these two issues demonstrates the broad scope on which such number characteristics of Post-Fordist capitalism. This section a narrow economic model operates. also addresses how Google’s financial model contributes to the Google has two main advertising ventures. The first of which decline of language diversity online by incentivising the use of is ‘Google properties’, the service for hosting advertisements more profitable languages over others. The second section of this built into its own products (its search engine and Gmail, for article focuses on the ways in which AdSense shapes online dis- example) the most significant part of which is AdWords. The course and dictates particular norms. In particular, this section second is ‘Google Network Members’ properties’, a brokerage draws out the reciprocal links between AdSense and Facebook service that runs advertisements on third-party websites, the and demonstrates how Google’s mode of advertising facilitated most significant part of which is AdSense.3 This article outlines the rise of fake news during the 2016 US presidential election. AdWords and AdSense separately, as they each have different Before addressing these two topics, the following section estab- impacts, and highlights one pertinent consequence of each, the lishes the framework of Post-Fordist theory, in order to con- reification of language and the rise of fake news, respectively. textualise Google’s activities within the broader shifts of 71.3% of Google’s revenues comes advertising on Google’sown contemporary capitalism.