A recent study uncovered a significant drop in traffic from Facebook to news sites, plunging by nearly 50% in 2023. The annual Trends and Predictions Report from the Reuters Institute, based on input from 134 media leaders across 56 countries, sheds light on this concerning trend. Data from Chartbeat analytics showcased a 48% decline in traffic from Facebook and a 27% dip from X (formerly Twitter).
This decline in referral traffic has directly impacted publishers like UK regional players Reach plc and National World, prompting cost-cutting measures resulting in the loss of hundreds of journalism jobs. The report also indicates widespread apprehension among publishers, with almost two-thirds expressing concerns about further declines in referral traffic in the upcoming year.
Nic Newman, the senior research associate behind the report, emphasized the challenges in reaching online audiences as social media platforms like Facebook retreat from news while X becomes less hospitable to publishers. Newman highlighted the fear that search traffic might follow suit, as AI-driven results increasingly present information within interfaces rather than directing users to news sites.
In response to these shifts, publishers are recalibrating their strategies. About 77% plan to focus more on their direct channels, while 22% are considering cost-cutting measures. They intend to reduce their reliance on platforms like Facebook and X, with greater attention being diverted to platforms like WhatsApp (+61% net score) and Instagram (+39%).
Regarding content formats, there’s a shift in priorities as publishers aim to create more video content (+64% net score), newsletters (+52%), and podcasts (+47%) while maintaining a similar volume of news stories.
The report also delves into publisher perspectives on artificial intelligence. While there’s acknowledgement of potential benefits, there’s also hesitance, especially concerning using AI for content creation due to perceived “reputational risk.”
The outlook for the coming year appears grim, with less than half of editors, CEOs, and digital executives expressing confidence in the future of journalism. Rising costs, declining ad revenue, slower subscription growth, and increased legal and physical harassment are among their primary concerns.
However, despite these challenges, publishers are investing in subscription and membership models, with 80% considering this a crucial revenue stream. Despite the tough economic climate, most publishers operating on a paid subscription model reported either stable or slightly increased subscription numbers in the last year.
The full report can be read here.
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