The gorilla in the room: FT.com MD warns of Facebook's threat to publishers

Thursday, 31 May 2012 - 10:19am

The gorilla in the room: FT.com MD warns of Facebook's threat to publishers

 

Rob Grimshaw described the social networking giant as a "gorilla" and warned that newspaper publishers would face a huge battle to stem mobile advertising spend from being swallowed up almost entirely by Facebook and Google.

Speaking at the Open Mobile Summit, Grimshaw said: "They are kind of a gorilla from an advertising point of view.

"If you look at the online advertising market as a whole, Facebook will make somewhere north of $3bn this year from advertising, Google will make somewhere north of $3bn from online display advertising as well. All US newspaper publishers put together will make about $3bn from online display advertising this year.

"If they are able to bring that to bear on mobile devices they have the potential to dominate the market almost completely

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