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Hitwise Intelligence - Alan Long - Asia Pacific

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November 11, 2009

In his most recent post, our General Manager of Global Research, Bill Tancer looked at the importance of Google to the Wall Street Journal following Rupert Murdoch’s recent comments in a Sky News interview (http://blogs.wsj.com/digits/2009/11/09/news-corp-considers-a-google-ban/?mod=rss_WSJBlog) saying he would consider blocking Google from indexing the News Ltd news websites.

To follow Bill’s analysis of the WSJ, here’s a local review of Google’s importance to the News Ltd News titles in Australia. I have aggregated Google Australia (google.com.au), Google (google.com) and Google News Australia (news.google.com.au) to provide a comparative view.

UpstreamFromGoogle.png

Below is the same chart highlighting upstream traffic to Google (Custom Category) from News Ltd News Titles (Custom Category).

Upstream2Google.png

During October 2009, the three websites made up 23.5% of the News Ltd News Titles (Custom category) upstream traffic and sat in positions 1 (Google Australia), 6 (Google)and 10 (Google News Australia).

upstreamsites.png

While newspapers around the globe are facing a similar dilemma experiencing declining revenues - will a micro payment / subscription model turn their fortunes around? Or is Mark Scott, the Managing Director of the ABC correct in suggesting that the plan is a classic play of an old empire in decline?

I’d be interested in your thoughts.

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Posted by Alan Long at 06:36 PM | (2) | (0)
In Categories Google | News and Media | Search | Search Engines

Comments

Hi Alan - interesting analysis. I think this really shows that Rupert Murdoch does not know what he's talking about. I really do not understand how he can criticise Google for its news service when all it does is aggregate, most importantly without any form of advertising. Additionally, Google has stated explicitly that they will stop indexing News Ltd if that is the company's wish.

It seems somewhat strange. Perhaps Rupert is vying for some sort of shift in public opinion? Maybe his words were more out of desperation or a diversion than anything. It just doesn't make sense.

It's also interesting to note that news.com.au (at least) generally has positive articles about Google. Every now and then there's something about a new google service or even random articles like how a family was reunited thanks to google - http://www.news.com.au/couriermail/story/0,,26339345-954,00.html

Anyway, the stats you've posted confirm what others have been thinking and saying. That is, News Ltd gains far more revenue-wise from Google indexing than it returns back to Google. Rupert should watch what he says.

Posted by JJ | November 12, 2009 04:50 PM

I'm with Mark Scott. This reminds me of the movie "Newsies," with Joseph Pulitzer trying to out-muscle the kids "carrying the banner." As Jack Kelly says in the movie, "Well, dat's da foist thing ya gotta learn - headlines don't sell papes. Newsies sell papes." And Murdoch needs to learn that his headlines don't send traffic to the Journal. Google sends traffic to the Journal.

Posted by Greg Jarboe | November 17, 2009 06:35 AM

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Alan Long

Research Director, Hitwise Asia Pacific.

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