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CheggMate

Mar 04, 2025 - searchenginejournal.com
The article discusses the decline of Chegg, an ed-tech company, attributing it to the rise of AI technologies like ChatGPT, which have shifted student behavior away from traditional study tools. Chegg's lawsuit against Google highlights the impact of AI Overviews on its business model, but the company's struggles began before AI became mainstream. Chegg's reliance on SEO and a young target audience made it vulnerable, and its brand awareness and engagement metrics have been declining for years. The article suggests that Chegg's decline is indicative of a broader trend affecting similar companies, as students increasingly turn to AI for educational support.

To combat this, Chegg is exploring pivots such as focusing on interactive tools and entering new markets like language learning and skills training. The article notes that other ed-tech companies like Scribd and Coursera are faring better due to diversified traffic sources and unique content offerings. It concludes that Chegg's situation is a cautionary tale for companies heavily reliant on SEO and young audiences, emphasizing the need for diversification and adaptation to changing market dynamics.

Key takeaways:

  • Chegg's decline is attributed to AI, particularly ChatGPT, which is impacting subscriber growth and reducing the need for traditional study tools.
  • Chegg's lawsuit against Google highlights the challenges of AI Overviews and their impact on organic traffic, but AI's broader influence on student behavior is a more significant issue.
  • Other ed-tech companies reliant on SEO are also experiencing traffic losses due to AI, with students increasingly using AI tools for studying and assessments.
  • To counteract AI's impact, companies should diversify traffic sources, focus on interactive tools, and explore new markets, as seen with Pearson's strategy.
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