Although the advent of readily accessible social media platforms has allowed for the proliferation of user content worldwide, there is increasing pressure on social media platforms and related companies to moderate the content that their users publish. Due to the decentralized nature of content sharing, companies are increasingly turning to third parties to handle their content moderation needs. As a result, content moderation has become one of the latest emerging trends in outsourcing services.
By the Numbers: Content Moderation Outsourcing
Content moderation services is one of the fastest growing markets, totaling an estimated market value of $13 billion in 2022. This market can be broken down into a variety of implementation categories, such as content moderation solutions (free standing products) and content moderation services (active moderation participation).
In 2022, the solutions segment dominated the market, representing 58% and $7.54 billion of the total content moderation market. Further, the on-cloud segment made up a majority of the market as well; 69% of companies used on-cloud, off-site content moderation versus on-premises products and services. Content moderation is both increasingly outsourced and off-site.
Benefits of Outsourcing Content Moderation
Outsourcing content moderation to a third party can present a variety of benefits for social media platforms and other similar businesses. A primary benefit provided by content moderation outsourcing is cost-savings. Instead of hiring and training an in-house team to moderate the content on a business’s platform, third-party content moderators can provide experienced services and solutions without excess cost.
Further, third-party content moderators are typically more experienced; not only does this drive down costs, as superfluous solutions and services are avoided, content moderation can be streamlined in the most efficient and applicable manner. Additionally, as a platform may grow, content moderation outsourcing may allow for ease of scale.
Potential Challenges for Businesses
As with most outsourcing arrangements, businesses must ensure that the proper safeguards are in place to protect the potential sharing of private and personalized data to the third-party entity. This consideration may be even greater in content moderation outsourcing, where the third party may review injurious material posted on a company’s platform.
From a qualitative perspective, content platforms may need to consider cultural and linguistic differences when outsourcing content moderation to a third party. Context is key and ensuring a synergized moderation approach between the platform and the third party may require discussions of cultural approach and goals.
Looking Forward
When outsourcing content moderation, platforms may need to approach the business relationship with both defined structure and flexible progression. On one hand, platforms may benefit by setting clear guidelines and expectations for the third party before content moderation begins. On the other hand, platforms may also need to continually audit and review the third party to ensure the outsourcing relationship is meeting its defined goals. This approach may be useful as the content moderation outsourcing market continues to expand.
Summer associate Cooper Attig contributed to this blog post.