Saturday, December 15, 2012

Why it makes economic sense for Google to build computer programs that do the jobs that journalists do

A quick note.  Google appears to be expanding its computer programs that do the work that journalists do.

These programs are called digital journalism tools, and the keywords here are digital and tool. (You can bet Google doesn't want to tell journalism organizations that's what it's called).

And once again, journalists and journalism organizations are helping Google take away their jobs.

Why do I suspect this - Google is offering journalists and journalism students a 10-week fellowship for $7,500 and $1,000 in travel funds. The price someone is willing to pay journalists for their labor is a key economic signal - it tells the journalists exactly how much they are worth to the company that is paying them. 

That means at this moment Google and the foundations are willing to pay journalists about $8,500 for 10 weeks of work.

Google only makes $0.02 a search, so the journalism foundations listed in Google's press release are subsidizing the fellowships. (I'm not linking because the last thing I want to do is help Google).

The subsidy might be needed because at $0.02 a search, each journalist has to generate 425,000 searches before the work they do is worth any money.

The small amount of revenue generated by each search is the reason that Google must develop computer programs that are more efficient and capable than any human journalists can be.  The programs at Google must compete with computer programs at other new media companies that are also learning to do the same jobs that journalists do.

What are these companies competing for?  To drive traffic to websites where digital advertising tools are used to sell and deliver advertising. The keywords here are digital and advertising. 

I wonder if the foundations financing this venture have offered to do it again next summer. Google will has ever reason to keep working with the foundations so long as the fellowships help Google refine its digital journalism tools, making the tools better and better and faster and faster at doing jobs that used to be done by people.

Meanwhile, journalists at all the newspapers that recently abandoned their print editions are about to find themselves competing against computers to drive traffic to their websites and sell advertising. And when people compete against machines, machines always win. 


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