The gorilla in the room: FT.com MD warns of Facebook's threat to publishers
Thursday, 31 May 2012 - 10:19am
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