THE MIDDLE EAST, BETTER EXPLAINED

Future of Media:Myth of Digital Transformation Every time a user clicks on an ad through Google or Facebook, the tech THE MIDDLE EAST, BETTER EXPLAINED company makes money on it. Shutterstock whitepaper Future of Media: Myth of Digital Transformation A series examining technology’s on the truth and the business of news

TABLE OF CONTENTS GLOSSARY

1. Introduction Advertising (Ad) revenue Media investment The monetary income of an individual A media investment or a media buy is 2. From newspapers to mobile devices: or organization from the sale of the purchase of advertising from a media The shift in news consumption habits advertisements. company such as a television station, newspaper, magazine, blog, website or a 3. The disruption of print media Media share or share of ad revenue social media platform. The percentage out of the total media spend 4. The real cost of digital transformation that a particular channel receives. Marketing or purchase funnel A term used to refer to the different stages 5. Balancing act: The relationship Print media in the consumer journey, usually starting between big tech and publishers The industry that is engaged in from awareness and interest, moving on the printing and dissemination to consideration and intent, and ending in 6. Impact on truth: Why it is time to take of news through newspapers evaluation and purchase. There are different action and magazines. versions of the funnel that may have fewer or additional stages. 7. Conclusion Traditional media Any form of media before the advent Eyeballs

THE MIDDLE EAST, BETTER EXPLAINED of digital media that did not rely on or Views, or the number of times an THE MIDDLE EAST, BETTER EXPLAINED primarily use the internet, such as TV, radio, advertisement or piece of content is print and outdoor. viewed. BIOS BIOS

Faisal J. Abbas Alexandre Hawari Editor-in-Chief CEO Arab News. Akama Holding Faisal J. Abbas is editor-in-chief of Arab News, the He has been the recipient of many media awards, Alexandre Hawari is CEO of Akama Holding, invested in innovative companies including premium leading Middle East English-language daily based in including the Next Century Foundation’s Cutting formerly incorporated in 2008 as Mediaquest global programmatic marketplace MMP WorldWide, Riyadh. Edge Award (2009) for efforts in bridging the Investment Holding. It is one of the region’s largest, and data mining platform MEmob+. He relaunched Arab News (established 1975) with communication gap between the West and the Arab most successful and most influential privately held He now applies his sharp financial and a more global and digital direction, and expanded world, and the British Council’s UK alumni Social Martech holding groups. management skills to the development and growth its international presence through a large network Impact award in Saudi Arabia (2017). The family office creates, acquires, invests in and of a portfolio of investments in a range of business of correspondents and regional bureaus across the He holds a master’s degree from the University of develops powerful media and tech companies for the sectors, after transforming a publishing company into world. Westminster and a bachelor’s degree from Lebanese benefit of all its stakeholders. It operates at the cutting a tech-driven marketing services innovator. Before joining the newspaper in 2016, Abbas was American University. He is also a graduate of the edge of the industry and has grown rapidly through His ambition is to make a significant contribution editor-in-chief of the Dubai-based English-language Executive Education Program of the Harvard judicious acquisitions, wise investments and strong to the creation of talent, value and return through service of Al Arabiya News Channel. Kennedy School, where he studied global leadership management. inspired investments in media, tech and beyond. He is a renowned columnist on Arab-international and public policy. Hawari graduated from Harvard Business School, Hawari’s interests include reading, playing paddle affairs and appears regularly in international media Abbas is a member of the editorial board of Al and is also CEO for Mediaquest, the leading content and tennis and traveling. He is fluent in English and to comment on regional affairs. Arabiya News Channel, an associate fellow of the events company in the Middle East. Akama Holding has French, and intermediate in Arabic. Abbas has previously written for The Huffington Cambridge Union Society and a member of the Post and worked with both Asharq Al Awsat and Al British Society of Authors. Hayat pan-Arab dailies, Future Television of Lebanon In 2017, he published his first Arabic book, “Arabi/ Elie Khouri and the International Resource Journal in London. Englizi,” which describes London through Arab eyes. Chairman Omnicom Media Group MENA Elie Khouri is chairman and CEO of Omnicom Media Driven by Khouri’s personal interest in talent Group, the media services division of leading global development, Omnicom Media Group MENA has Broadcaster, writer and Chancellor of the University of Kent marketing communications company Omnicom been named a top-five employer in the UAE by the Gavin Esler is an award-winning broadcaster, correspondent for eight years, based in Washington, Group in the Middle East. He heads the operations of Great Place To Work Institute for four years in a row, podcaster, journalist and writer. He is the holder of a and frequently reported from the White House, mostly OMD, PHD, Hearts & Science and Resolution, as well ranking second in 2017. Royal Television Society award, a Sony Gold (Radio) during the Clinton presidency. He has also reported as several specialist entities. Today, the group employs Khouri has developed a significant sustainability award, and two Lovie awards for his podcast series from countries as diverse as China, Peru, Argentina, more than 700 people and has a wide footprint program, making Omnicom Media Group the first about Vladimir Putin, “The Big Steal.” Cuba, Brazil, Russia, Jordan, Iran and Saudi Arabia, across the GCC, the Levant and North Africa. marketing holding group in the region to have its He is the author of five novels and four nonfiction as well as from the Aleutian Islands and across Khouri has been consistently recognized during his sustainability practices reported in accordance with books. Europe. 30-year career in advertising and media, appearing the Global Reporting Initiative’s G4 guidelines. He is well known for his reporting and presenting On returning to the UK, he joined the presenting regularly in Arabian Business’ “Top 50 most He has a strong personal interest in coaching and work at the BBC, and has been the main presenter team on the BBC’s flagship news and current affairs Influential Arabs” and Power 500 lists. Both CEO mentoring entrepreneurs and startups. In 2017, on “Dateline London” on BBC News and BBC World, program, “.” and Gulf Business magazines have named him media he was appointed to the board of the UAE affiliate as well as numerous other programs, including He is a voting member of BAFTA, chancellor of the CEO of the year. In 2017, he was named leader of the of Endeavor, the global nonprofit organization “HARDtalk.” University of Kent and a visiting lecturer in various year by the Great Place to Work Institute and was also that supports high-impact entrepreneurs with a He left the BBC in 2018 and is now a freelance academic institutions, large corporations and recognized as a key influencer in the Power Profile worldwide network of mentors and business leaders. journalist and writer. public service organizations, including Britain’s list by LinkedIn. Photographer credit: Karen Kalou Bibi Formerly, Esler was BBC’s chief North America military.

THE MIDDLE EAST, BETTER EXPLAINED THE MIDDLE EAST, BETTER EXPLAINED BIOS ABOUT THE AUTHORS

Sarah Messer TAREK ALI AHMAD Managing Director Head of Arab News Research & Studies Nielsen Media, Middle East, North Africa and Pakistan Arab News Sarah Messer leads the media team for Nielsen Middle are counted across platforms and content. Tarek Ali Ahmad covered the October 2019 protests in Human Rights Law from SOAS, University of East, North Africa and Pakistan. She joined Nielsen Before joining Nielsen, Messer led the commercial in Lebanon and the country’s 2018 parliamentary London, and a BA in Media and Communication in 2012 and has spent the past nine years building research and insight department at ITV, the elections, as well as the World Economic Forum’s from the American University of Beirut. the firm’s media portfolio within the region, working UK’s largest commercial broadcaster. She has annual meeting in Davos in 2020. He holds an MA Twitter: @Tarek_AliAhmad with a range of local and pan-Arab traditional and won multiple industry awards in recent years, digital media owners. has been instrumental in developing industry Messer and her team are responsible for developing audience measurement systems such as UK Online Zaira Lakhpatwala tailored approaches to deliver specific insights on Measurement, and chaired industry committees Media Editor audience and content, as well as providing strategic including the Television Opinion Monitor and AOP Arab News recommendations for clients to understand this Research Committee. Zaira Lakhpatwala covers the media, advertising East. She is passionate about advertising and rapidly changing landscape. She also works closely Messer holds a bachelor of science degree with and marketing industries. With over 10 years of technology, and their cumulative impact on culture with the region’s industry boards and committees to honors in business and management studies from the experience in media and advertising, she has worked and business. drive measurement initiatives and ensure audiences University of Bradford in the UK. in both agencies and publishing houses in the Middle Twitter: @Zaira

Juan Señor President Innovation Media Consulting Group Juan Senor is president of Innovation Media respectively. He has edited 32 books. Consulting Group in London, one the world’s leading Senor worked for seven years as a war and conflict news media consultancies. reporter for PBS “.” He then became a He has worked with and advised hundreds of media presenter for EBN-Wall Street Journal TV and CNBC companies on every continent, and serves on the Europe. He also served as the London correspondent advisory boards of several media groups. of International Herald Tribune Television, then Senor is also a former visiting fellow at the owned by The New York Times and The Washington University of Oxford in the UK. Post. He has been listed as one of “The World’s Leading His work has been nominated for an Emmy award Innovators’ in Journalism and Media” by Journalism and his television program, “Media Report,” was UK. Senor is a highly sought after commentator on voted by viewers as Europe’s best business program. the media industry, speaking at global forums and He continues to work as a live event and television quoted frequently in leading publications, such as The host and presenter. He has hosted the Cannes Lions Economist and The Financial Times. International Festival of Creativity for 14 years, the He is co-editor of two annual publications, Reinvention Festival for a decade and dozens of “Innovation in News Media” and “Innovation in public speaking engagements every year as a keynote Media,” written on behalf of WAN-IFRA and the FIPP, speaker or moderator.

THE MIDDLE EAST, BETTER EXPLAINED THE MIDDLE EAST, BETTER EXPLAINED Digital media surpassed print’s share of ad Introduction revenue in 2016, with igital transforma- print now forecasted to command only 6 tion” has been the Rapid turn percent of the total around media share by 2024. buzzword of many Shutterstock meetings, confer- of news ences and business cycles the “Dlunches, but what does it really mean, consumption and more importantly, what does it of news — mean for the print media industry? real or fake — has grown According to global research and advisory parallel to the firm Gartner, digital transformation can growth of the refer to anything from IT modernization Internet (for example, cloud computing), to digital optimization, to the invention of new digi- tal business models. The invention and rise of these new digi- tal business models is precisely what has led to the doom and collapse of the news media industry.

ARAB YOUTH'S NEWS MEDIA SOURCES Social media TV Online Newspapers 80% 70% 60% 50% 40% 30% 20% 10% 0 2015 2016 2017 2018 2019 2020

In this two-part whitepaper, Arab News’ Research & Studies Unit examines digi- tal transformation in the context of the growth of big tech companies and the con- sequent impact on the publishing industry and why governments and regulatory bod- ies need to take notice and action. The first part of this report analyzes the declining advertising (ad) revenues of print media companies; the unprecedent- ed revenue — and sometimes unchecked power, monopoly and growth of big tech

THE MIDDLE EAST, BETTER EXPLAINED companies — and the resulting collapse of THE MIDDLE EAST, BETTER EXPLAINED the print media industry debilitating truth, news and business. SHARE OF MEDIA AD SPENDING IN MENA SHARE OF MEDIA AD SPENDING IN THE GCC TV Print OOH Digital Radio+ Cinema TV Print OOH Digital Radio+ Cinema 60% 70%

50% 60% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0 0 ‘08 ‘010 ‘12 ‘14 ‘16 ‘18 ‘20 ‘22 ‘24 ‘08 ‘10 ‘12 ‘14 ‘16 ‘18 ‘20 ‘22 ‘24

FROM NEWSPAPER these platforms a matter of grave concern. A Washington Post signature banner was to clone a website — right from the website TO MOBILE DEVICES: 2018 study by three Massachusetts Institute circulated in Washington D.C. with a link to its logo and font — and distribute fake THE SHIFT IN NEWS of Technology (MIT) scholars found that lead story about then President Donald news, tarnishing the reputation of credible CONSUMPTION HABITS fake news spreads far more quickly on Trump’s resignation. The headline read news media outlets. The growth of digital media undoubtedly Twitter than true stories2. According to “UNPRESIDENTED,” adding “Trump Hastily The rise of fake news and newspapers has revolutionized business; however, it has their research, false news stories are 70 Departs White House, Ending Crisis.” led to massive distrust among the general had a profoundly adverse effect on the print percent more likely to be retweeted than The fake paper included a pullout section, public, with 59 percent globally saying that media industry. This effect is evident in the true stories3. It also takes true stories about “Bye-bye: A Guide To Bringing Him journalists and are purposely declining revenues of print media outlets six times as long to reach 1,500 people than Down,” which indicated the source of the trying to mislead people by saying things but, and perhaps more importantly, is also it does for false stories to reach the same publication. It was created by activist and they know are false or gross exaggerations7. reflected in the shutdown and downsizing number of people4. journalist L.A. Kauffman in collaboration As trust in legacy media declines, more and of news outlets as they struggle to continue with author Onnesha Roychoudhuri and more people are turning to alternative media delivering credible and accurate news and Rapid turn around of news cycles activist duo Yes Men as a piece of satire. “I sources such as Breitbart, that often publish analysis. The consumption of news — real certainly hope that people get a moment fake and biased news. Not too long ago, it was a common habit or fake — has grown parallel to of joy in the period before they realize it’s a The rapid news cycles are also making the for people to start their day with a morning 2the growth of the Internet. BBC journalist dream projecting into the future,” Kauffman job of true journalists much harder. Not too newspaper and end it with the late night and author Gavin Esler sums up this told US-based National Public Radio (NPR) in long ago, journalists could take the time to news on television. Just like traditional alarm phenomenon with an analogy: Back in the an interview5. develop a story; but in the age of social media clocks, newspapers have now been replaced day, it was like being a “carnivore,” he said, In this event, the newspaper was intended and online publications, that has become a with news sites, and televised news has been where you would have one or two big meals a to be a fake. However, that is not always the luxury. When Bill Clinton was accused of replaced with social media accounts that day. “Now, we’re much more like herbivores. case. having inappropriate relations with White livestream 24/7. We’re constantly grazing; it never stops.” In 2016, a webpage was published that House intern Monica Lewinsky, Esler spent This report believes the above change in This has a double-edged impact: First, it looked just like a New York Times article a year investigating the truth. But when news consumption habits brings to light the makes it simple for fake news to become claiming that Sen. Elizabeth Warren of “the principal news source in the world is following concerns: top stories, albeit for a short period of time. Massachusetts had endorsed Bernie Sanders constantly telling lies,” said Esler, referring Second, it gives really important stories a for president. The article was widely to Trump, it is very difficult for anybody, The accuracy of news on social much shorter lifespan, and as such, a really circulated on social media, gathering more particularly journalists, to catch up. media: Who is checking? important matter could easily be overridden than 50,000 views and 15,000 shares on While some journalists do call out lies or In 2020, a massive 79 percent of Arab by another story in a much shorter period of Facebook within a day6. In 2015, a fake mistruths when they seem, it is becoming 1youth got their news from social media time (unless money and effort is invested in Bloomberg article reported that Google increasingly hard to invest the time in every compared with just 25 percent in 20151. artificially monstering a story, this is done by was considering buying out Twitter, story. But unfortunately, “it has become With a rapidly increasing percentage of the people or entities with agendas that can use resulting in a spike in Twitter’s share normalized (and) once you go down this road population getting their news from social very simple social tools to keep a story alive prices. In 2012, WikiLeaks created a fake of not caring about the facts, then you have media, it is crucial to consider the veracity of longer). Times’ op-ed defending WikiLeaks; the fake real problems,” added Esler. information on platforms such as Facebook looked genuine enough for several users The ease of creating a fake news site and Twitter. The impact on the reputation of THE MIDDLE EAST, BETTER EXPLAINED — including journalists — to believe it was THE MIDDLE EAST, BETTER EXPLAINED combined with the rise of citizen journalism This, especially, makes the rise of fake journalism and journalists actually a Times article and share it. has put the livelihood of journalists — who news and hateful and violent content on 3 In 2019, a paper carrying The These instances exemplify how easy it is are already endangering their lives covering transformation” have become buzzwords accelerated automation, e-commerce and and even company missions. remote work, which means that more than By next year, a massive 65 percent of the 100 million workers in eight countries will As audiences world’s gross domestic product is set to be need to find a different occupation by 2030, shifted to digitized, with direct digital transformation according to a McKinsey report13. digital (DX) investments totaling $6.8 trillion Digital media is in reality dominated by platforms between 2020 and 2023, according to the social media with the exception of Google. like Google, International Data Corporation (IDC)11. “Social platforms like Facebook, Snap, Facebook But what is the real cost? Twitter and Tiktok are expected to soon and Twitter command 50 percent of digital media for daily THE REAL COST OF DIGITAL investments,” said Elie Khouri, chairman and news, these TRANSFORMATION CEO of Omnicom Media Group, MENA. The loss of jobs. In the MENA region, Facebook and Google companies In the US alone, more than 36,000 journalists dominate a massive 80 percent of total digital started have lost their jobs, been furloughed, or ad spend14. profiting faced a pay cut, reported the Nieman Lab12. The world’s largest advertiser, Amazon, from quality Not only are news media outlets cutting recorded an annual advertising spend of journalism down on newsroom staff, they have also $11 billion in 201915. Assuming the trend been hiring fewer employees. The US news of digital media commanding half of ad industry employed 27,000 fewer reporters, spend — dominated by Facebook and editors, photographers and videographers in Google — about $5.5 billion went to digital 2019 than a decade earlier, according to the media channels, of which $4.4 billion went same report. to Facebook and Google from a single Local newspapers have been hit the advertiser. hardest, but this time digital publishers are topics such as conflicts and health crises like The ease of creating Alexandre Hawari, CEO of publishing and no exception. Digital-first publishers like The concentration of power. a fake news site the coronavirus — at great risk. combined with rise of events company Mediaquest and Akama BuzzFeed, Huffington Post (now HuffPost) Globally, the share of the four big digital The accusation of mainstream media citizen journalism has Holding. and Vice have been struggling and cutting players — YouTube, Google, Facebook and put the livelihood of outlets promoting fake news resulted in journalists — who are Simply put, when the economy was jobs consistently. Snap — grew from 41 percent to 62 percent already endangering several threats against journalists. In 2018, their lives covering stronger, advertisers were spending more Digital transformation has not only shut of the total digital ad spend in the last 10 Variety reported that a man in the US was topics such as conflicts on advertising. However, since then, media down newsrooms, but also printing presses years16. and health crises like accused of making 22 calls to CNN’s Atlanta the coronavirus — at investments have been steadily decreasing — a situation made worse by the pandemic, Today, only these four companies represent offices including four recorded threats to its great risk. AFP reaching $2.5 billion in 2020, he added. which resulted in many newspapers halting 35 percent of the total global media ad spend employees. In one call, he said: “Fake news. “Over the years, there has been a growing their print circulation. — growing from just 8 percent in 201117. I’m coming to gun you all down.” focus on performance i.e. generating sales Even in 2019, before the pandemic hit, On the other hand, traditional media’s share by targeting consumers at the bottom of the there were 21 percent fewer printing of global ad spending has dropped from 81 THE DISRUPTION funnel,” said Hawari. press operators and 32 percent fewer percent in 2011 to 44 percent in 202118. OF PRINT INDUSTRY Before the advent of digital media, pre-press technicians and workers than The concentration of spends, and hence In the Middle East and North Africa (MENA) advertisers spent more money on traditional in 2016, according to the US Bureau of power, in the hands of a few companies region, print media’s ad revenues have media platforms for top of the funnel Labor Statistics. But last year, as print is dangerous for both businesses and been declining since 2008. Digital media activities, such as creating brand awareness media outlets continued to struggle due to economies. The near monopolization of surpassed print’s share of ad revenue in 2016, and generating interest in their brand and decreased revenue and circulation, even the digital ad industry makes it so powerful with print now forecasted to command only products. Since digital media offers stronger more companies shut down their presses. that even government officials are unable to 6 percent of the total media share by 20248. targeting capabilities, advertisers are able Most notable among them is News Corp, regulate it. Additionally, it has resulted in job The biggest spending region within MENA to use it for lower funnel activities, such the parent company of papers such as The losses in other sectors that are weakening is the Gulf Cooperation Council (GCC), as identifying the purchase intent of their Wall Street Journal and New York Post. In the economy while tech giants continue which accounts for at least 75 percent of all audiences and driving them toward buying. September 2020, it announced that it would to thrive. In the US alone, over 2000 advertising spend in the region9. Hawari added that the shift toward digital be shutting down its Bronx Print Plant and newspapers shut down between 2004 and Between 2016 and 2024, digital’s share platforms that offer strong targeting shifting the printing of its publications to 2019, with many more struggling to survive19. of ad spending would have increased by capabilities is a result of lower investments in another facility in the city in a move to cut Hawari said that in the last few years, 20 percent, while that of print would have broad brand building. costs. Google and Facebook have witnessed dropped by 13 percent10. These numbers are a clear reflection Although digital transformation might exponential growth in audience, usage and

“The total media investments grew in the THE MIDDLE EAST, BETTER EXPLAINED of businesses shifting their advertising create more technology-related jobs in revenues and together represent about a THE MIDDLE EAST, BETTER EXPLAINED first half of the past decade, peaking at some spend toward digital channels. It is no the long run, its impact on the wider job third of total media investments. $5 billion according to Zenith Media,” said surprise then that “digital-first” and “digital market and economy is dire. The pandemic “Digital advertising investments keep on growing and going to the major global support their media sector with this BIG TECH CONTROVERSIES IN THE PAST DECADE players, because that’s where audiences are revenue is clearly a political decision. At BIG TECH CONTROVERSIES IN THE PAST DECADE found.” False news the very least, it should be about promoting However, he added that if advertisers development rather than supporting lame stories are 100,000 dig deeper, they would find alternative ducks.” 70 percent 100,000Facebook apps approaches that support local economies and The idea of not paying publishers back in 2011 Facebookleak personal apps data more likely to to third parties are both “appealing and effective.” some form is “fundamentally meretricious 2011 leak personal data be retweeted to third parties than true and a flawed argument,” said Esler. Not BALANCING ACT: THE compensating journalists and publishers is stories RELATIONSHIP BETWEEN like taking milk from farmers and not paying British feminists Britishreceive feminists rape BIG TECH AND PUBLISHERS them because it is driving more people to receivethreats; rapeTwitter 2013 This report finds that it is worth noting buy milk from them, he said. “Why should threats;launches Twitter “Report 2013 Twitter bans launchesAbuse” button “Report that the increasing ad revenues of the four there not be some reasonable recompense Twitterrevenge bans porn, Abuse” button big digital players are inconsistent with from these massive organizations for revengeterrorism porn, & terrorismpromotion & of the growth of their subscribers. Their ad something they make a profit out of?” promotionviolence of violence revenue is increasing at a far more rapid pace Sarah Messer, managing director at Nielsen 2015 Donald Trump than users signing up to their service, which Media MENAP, took a few steps back to Donaldannounces Trump his bid 2015 for the US means that they are constantly finding new 10 years ago when social media platforms announces his bid forpresidency the US ways to monetize their service — often at the were growing rapidly and digital publishers presidencythrough inflamma- throughtory inflamma- expense of other media channels. started taking advantage of it. She said that torycontent In the last 10 years, Facebook’s growth in ad traditional publishers were quite slow “to content Facebook plays a revenue is 4.2 times more than the growth understand how to mix their digital offerings Facebookcontroversial plays role a 2016 Facebook admits in Trump’s win to selling controversial role 2016 in users, Snapchat’s is 5.4 times more and with their traditional offerings.” Facebook admits in Trump’s win to$100,000 selling worth of YouTube’s is 4.1 times more20. They were uncomfortable in the digital $100,000ads to fake worth of “In 2019, Facebook’s revenues were 10 space, she said, leaving the gate open for adsRussian to fake accounts Russianduring the accounts US times what they were in 2013 — a third of it digital publishers and big tech companies to duringelections the US elections being profit at the expense of a large section come along. 2017 2017-19: of the media ecosystem in many countries,” However, Faisal Abbas, editor-in-chief, 2017 2017-19:Facebook and WhatsApp Cambridge said Hawari. Arab News, said: “Almost every newspaper Facebook and WhatsAppcontent results in CambridgeAnalytica exposé On the other hand, the decline in ad publishes its articles online and has a social contentmobs and results lynching in Analytica exposé in India & Indone- The violence revenues of traditional media channels is far media presence.” mobs and lynching insia India & Indone- Theagainst violence Rohingya more than the decline in their subscribers. Even 10 years ago, publishers did jump sia againstMuslims Rohingya in Myanmar starts Print media’s ad revenues in the GCC on to these platforms and maximize their Muslims in 2018 Myanmaron Facebook starts 2018 dropped by a whopping 91 percent between presence. on Facebook Buddhists are set 2008 and 2019 even though the average The problem, Abbas added, is that the Buddhistsagainst Muslims are set in readership drop was 16 percent in Saudi industry is not fair to credible publishers. againstSri Lanka Muslims on in Facebook’s Facebook partnership with Sri Lanka on Arabia and 27 percent in the UAE21. The algorithmic approach of platforms Facebook’s Facebook partnershipThe Daily with As audiences shifted to digital platforms such as Facebook is designed to spread 2019 TheTelegraph Daily to tone like Google, Facebook and Twitter for daily and promote content that gets more clicks, Telegraphdown anti-Face- to tone 2019 downbook contentanti-Face- is news, these companies started profiting from and this content tends to be scandalous or bookrevealed content is quality journalism. controversial and mostly untrue. revealed In fact, the second biggest source of traffic Despite publishers digitizing their content Information of for Facebook and Google in every single offering, the relationship between big tech Informationprivate WhatsApp of 2020 country is news, said Juan Senor, president companies and news media has always been privategroups WhatsAppis made groupspublic via is madeGoogle 2020 of INNOVATION Media Consulting Group. “dysfunctional,” said Senor. Facebook data public via Google It seems only logical for big tech companies “They have always had the upper hand,” he Facebookleak results data in to not only invest in journalism, but also said. leak500+ results million in users’ 500+data on million hackers’ users’ remunerate publishers fairly — something The relationship is based on the premise datawebsites on hackers’ websites that regulators around the world are trying that if you build a huge audience and get a lot 2021 Trump uses to enforce. of traffic, somehow you will generate a lot of 2021 TrumpTwitter usesto promote violence, leading to “To me, it is only fair that taxes are paid ad revenue, but that is only true for the big Twitter to promote violence,the Capitol leading riot; to where income is generated, with the receipts tech companies, not for publishers, added theTwitter Capitol riot; Twitterbans him being injected back into the local economy,” THE MIDDLE EAST, BETTER EXPLAINED Senor. bans him THE MIDDLE EAST, BETTER EXPLAINED added Hawari. Every time a user clicks on an ad through “Whether the governments decide to Google or Facebook, the tech company HOW REGULATORS ARE TRYING TO KEEP BIG TECH IN CHECK HOW REGULATORS ARE TRYING TO KEEP BIG TECH IN CHECK United States UnitedAntitrust States lawsuit against Amazon, AntitrustFacebook, lawsuit Google against and Apple Amazon, to Facebook,abolish anti-competitive Google and Apple practices to abolish anti-competitive practices Opens up talks of taxation with OpensPresident up Joetalks Biden of taxation wants with the Presidentworld’s largest Joe Biden100 companies wants the to pay world’staxes in largest countries 100 where companies they offer to pay taxestheir services in countries where they offer their services Senate calls Google, Facebook and SenateTwitter’s calls CEOs Google, to testify Facebook on the andtopic Twitter’sof disinformation CEOs to andtestify misinformation on the topic ofonline disinformation and misinformation online Australia Australia Australia passes the first law of its kind in United Kingdom Australiathe world passes to make the Facebook first law andof its Google kind in United Kingdom theto pay world publishers to make back Facebook and Google Introduction of the Digital Services Tax to pay publishers back Introduction(DST) of the Digital Services Tax (DST) DST to levy a 2 percent tax on the DST“revenues to levy of a search2 percent engines, tax on social the “revenuesmedia services of search and onlineengines, social mediamarketplaces services which and online derive value from marketplacesUK users” which derive value from UK users” Fines of up to £18 million ($24 million) or European Union Fines10 percent of up ofto their£18 millionannual ($24 global million) or European Union turnover (whichever is higher) if they Introduction of the Digital Services Act and Digital 10 percent of their annual global Markets Act turnoverdon’t take (whichever down illegal is higher)content if they Introduction of the Digital Services Act and Digital promptly Markets Act don’t take down illegal content The former targets illegal and harmful content by asking promptly Establishment of a Digital Markets Unit Theplatforms former to targets rapidly illegal take itand down harmful content by asking

Establishment(DMU) to handle of anti-competitive a Digital Markets Unit platforms to rapidly take it down behavior and protect consumers and The latter is aimed at anti-competitive and (DMU) to handle anti-competitive monopolizing behavior behaviorbusinesses and from protect unfair consumers practices and The latter is aimed at anti-competitive and businesses from unfair practices monopolizing behavior

makes money on it. However, a publisher platforms) wholeheartedly and brands follow Why, then, should brands have direct consequences. In the last 10 years, Facebook’s growth in does not necessarily make money every audiences,” said Khouri, explaining why relationships with publishers when they can Facebook was equally responsible for ad revenue is 4.2 times time a user clicks on an ad on a website. big tech platforms have the edge — and the get more for less on a big tech platform? Donald Trump’s victory in 2016. The more than the growth in users. Shutterstock In fact, publishers receive only half of revenues. “I’m not saying they shouldn’t. But, we Facebook and Cambridge Analytica team the total advertising spend, with the rest “Today, they are on digital platforms, need to level the playing field so the same worked with the Trump campaign on a daily going to different digital channels along which have targeting, reach, pricing tools are available for publishing houses,” basis. Brad Parscale, who led Trump’s digital the way, according to a 2020 report by the and accountability benefits a lot of other said Abbas. “The problem with the model campaign, admitted that 80 percent of the Incorporated Society of British Advertisers media do not have. Hence ad revenues are here is that Google, Facebook and the big campaign budget was spent on Facebook. (ISBA) and PwC22. dwindling in legacy media and their digital tech companies reward people who get more In fact, Parscale said in a WIRED interview: income is not big enough yet to compensate clicks.” “Facebook and Twitter were the reason we The two critical conditions for the shortfall,” he added. won this thing. Twitter for Mr. Trump. And of the report were: The value of any media channel throughout IMPACT ON TRUTH: WHY IT Facebook for fundraising 23.” Standardisation is urgently required history has been about eyeballs i.e. the IS TIME TO TAKE ACTION In 2018, the UN said that Facebook played across a range of contractual and number of times an ad or content is being “This technology that you have invented has a major role in hate and violence against technology areas, to facilitate data viewed, said Messer. Overtime, advertisers been amazing. But now, it’s a crime scene,” the Rohingya Muslims in Myanmar. A 1sharing and drive transparency. have also started seeing the “profile” of said British investigative journalist Carole report by independent nonprofit Business eyeballs. If these eyeballs are not bots and Cadwalladr in her TED talk “Facebook’s role for Social Responsibility (BSR) found that All industry participants should actual people who match the target audience in Brexit — and the threat to democracy.” She the platform was not doing enough to collaborate to further investigate of an advertiser, they are considered was directly addressing Facebook co-founder help “prevent our platform from being the unattributable costs and agree premium. “That means that you can come and CEO Mark Zuckerberg and the “gods of used to foment division and incite offline 2industry-wide actions to reduce them. in get a certain amount of revenue or charge Silicon Valley.” violence,” Facebook admitted in a blog a certain premium price (for eyeballs),” she Cadwalladr was referring to the Cambridge post24. For many in Myanmar, Facebook is In order to publish a credible article, a added. Analytica scandal, where the company the Internet. Myanmar military personnel news piece has to go through a process from The ubiquity of social media changed the harvested the data of Facebook users created Facebook accounts posing as an on-ground reporter to a copy editor to eyeballs game from tens of thousands to to influence the United Kingdom’s EU everyday citizens to disseminate hate speech. a publishing team, and so on. “In essence, hundreds of millions, which started to shift referendum. Pro-leave campaign groups According to an investigative report by The there is a significant amount of money the revenue and ad spending patterns. also ran ads on Facebook that were simply New York Times, members of the Myanmar involved to ensure the credibility of what “The local TV or radio channels or local untrue. But the ads were not subject to any military were the prime operatives behind we publish online,” said Abbas. On the newspapers don’t have the same reach, and fact checking and there was no record of a systematic campaign on Facebook that other hand, it takes minimal investment for they cannot get the same reach,” said Messer. their existence after the campaign. stretched back half a decade and targeted the someone to buy a domain name and publish “So, it becomes a volume and eyeball game,” This is just one of several instances country’s mostly Muslim Rohingya minority

“fake stories with sensational headlines that she added, explaining that the targeting THE MIDDLE EAST, BETTER EXPLAINED where Facebook has not only allowed group25. THE MIDDLE EAST, BETTER EXPLAINED will get clicks,” he added. and reach big tech platforms can provide is misinformation on the platform, but Despite its official stance on reeling in fake “People have embraced them (digital unmatched. also propagated it, resulting in real-life news, Facebook’s algorithms are actually FOOTNOTES

1. Arab Youth Survey “A Voice for Change” (2020) 15. Ad Age “Prime Time: Amazon is now Earth’s biggest advertiser” (2020) 2. Massachusetts Institute of Technology (MIT) “The Spread of True and False News Online” (2018) 16. eMarketer Data (2021)

3. ibid 17. ibid

4. ibid 18. ibid

5. National Public Radio (NPR) “Real Fake News: 19. UNC Hussman School of Journalism and Media Activists Circulate Counterfeit Editions Of ‘The “News Deserts and Ghost Newspapers: Will Local Washington Post’” (2019) News Survive?” (2020)

6. New York Times “Fake New York Times Article 20. Supra, n.9 Claims Elizabeth Warren Endorsed Bernie Sanders” (2016) 21. Supra, n.7

7. Edelman “Edelman Trust Barometer 2021 22. Incorporated Society of British Advertisers Global Report” (2021) (ISBA) and PwC “Programmatic Supply Chain Transparency Study” (2020) 8. Choueiri Group Estimates (2020-21) 23. WIRED “Here’s How Facebook Actually Won 9. ibid Trump the Presidency” (2016)

10. ibid 24. Business for Social Responsibility (BSR) “Our Human Rights Impact Assessment of Facebook in 11. International Data Corporation IDC “Digital Myanmar” (2018) Transformation Investments to Top $6.8 Trillion Twitter banned Donald designed to propagate it. that more targeted, discriminatory tweets Globally as Businesses & Governments Prepare for 25. The New York Times “A Genocide Incited on Trump following the the Next Normal” (2020) Facebook, With Posts From Myanmar’s Military” Capitol Hill riots for Twitter is not exempt from such posted in a city related to a higher number (2018) his tweets that were controversy either. In early January, Twitter of hate crimes,” said Rumi Chunara, 12. Nieman Lab “Covid-19 has ravaged American alleged to have incited violence from a mob of banned Donald Trump following the Capitol assistant professor of computer science and newsrooms. Here’s why that matters” (2020) 26. New York University (NYU) “Hate Speech on Twitter Predicts Frequency of Real-life Hate far-right protesters. Hill riots for his tweets that were alleged to engineering at the NYU Tandon School of Getty Images 13. McKinsey “The future of work after COVID-19” (2021) Crimes” (2019) have incited violence from a mob of far-right Engineering and biostatistics at the NYU protesters. Yet, other world leaders continue College of Global Public Health, who led the 14. ibid 27. ibid to tweet and incite hatred on the platform. research27. Iran’s Supreme Leader Ayatollah Ali Khamenei’s many accounts in multiple CONCLUSION languages still exist on the platform, and As evidenced by these instances, the include tweets inciting hate, violence and exponential growth and power of big tech disinformation. When US Senate Commerce companies calls into question the entire Chair Roger Wicker asked Twitter chief Jack nature of freedom, truth and fairness in Dorsey in a hearing last year about tweets ’s world. from Khamenei that “glorified violence,” Today, publishers are not competing Dorsey defended the decision to keep them with each other. “We’re not comparing, or unlabeled on the platform. He said: “We did competing, apples to apples anymore,” said not find those to violate our terms of service Abbas. Instead, news media is competing because we considered them ‘saber-rattling,’ with the likes of Facebook and Twitter for which is part of the speech of world leaders eyeballs, he added. in concert with other countries.” Despite big tech’s efforts and investment Other accounts in the Arab world, such as in journalism, news media outlets are still those of exiled Egyptian cleric Yusuf Al- downsizing or shutting down. “And in Qaradawi and terrorist-designated Qais Al- all of this, the biggest loser is the truth,” Khazali, still remain active. said Abbas. “We have to level the playing A 2019 study by New York University field. There needs to be a way to be able to found that cities with a higher incidence reward publications or media outlets that

THE MIDDLE EAST, BETTER EXPLAINED of certain kinds of racist tweets reported are producing this credible information, as THE MIDDLE EAST, BETTER EXPLAINED more actual hate crimes related to race, opposed to punishing them, which is what’s ethnicity and national origin26. “We found currently happening.” REFERENCES

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WIRED “Here’s How Facebook Actually Won eMarketer Data (2021)

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