In the digital era, the rise of social media algorithms is believed to have transformed the news industry. The algorithms, which are designed to curate and personalise content for users, seem to have become pivotal in determining which news stories get viewership and eventually how media organisations generate revenue. Social media platforms like Facebook, X(formerly known as Twitter), and Instagram among others have been impacting the news landscape and the economic stability of digital news organisations.
The algorithmic influence on news distribution
Once considered to be mediums for old high school photos or poking friends, social media platforms have become primary news sources for many users. According to a report published by Pew Research Center, 53% of adults in the USA reported getting their news from social media platforms as of 2024, reporting a sharp increase from 40% in 2018. It is believed that this shift has been driven by sophisticated algorithms which prioritise content based on user preferences, engagement patterns, and historical behavior.
For news publishers, this algorithmic control seem to be a double-edged sword. While it provides unparalleled access to a vast audience, it potentially increases reach and engagement. On the other hand, it also means that the visibility of news content is subject to whims of algorithms that may prioritise sensationalism and engagement over journalistic ethics and integrity.
The revenue dilemma
This shift has an impact on revenue generation. A 2024 report by the Reuters Institute for the Study of Journalism reveals that 58% of digital news publishers have been experiencing revenue declines due to algorithmic changes and reduced ad revenues. It is believed that social media platforms retain a share of advertising revenue often leaving news organisations with a small slice of the pie. This dependence on algorithm-driven traffic has also led to an overdose of clickbait headlines and sensational stories to gain the eyeballs of viewers. This phenomenon has been upping the numbers of fake news too. A 2019 survey showed that 88% of the first time voters across India agreed that fake news was a real problem as a report published by Statista.
The future of news and algorithms
It is expected that the relationship between news organisations and social media algorithms will continue to evolve. As platforms continue to refine their algorithms and introduce newer features, news publishers will need to stay agile and innovative. Amidst this situation, the challenge for news organisations is believed to strike a balance between demands of algorithmic visibility and the need for high-quality, reliable journalism. Ultimately, the impact of social media algorithms on digital news business seems to be a testament to the profound ways in which technology shapes the media landscape.