Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Google’s Gen AI Search Threatens Publishers With $2B Annual Ad Revenue Loss

Mar 13, 2024 - adweek.com
Google's artificial intelligence-powered search engine, Search Generative Experience (SGE), could cause a significant disruption in organic search traffic, potentially leading to a decline in digital ad revenue for publishers. The decline could range from 20% to 60%, with an estimated ad revenue loss of up to $2 billion annually across the publishing industry. In response, publishers are retooling their SEO strategies, investing in content expertise, and diversifying traffic to combat the predicted SGE traffic impact.

Publishers are also exploring ways to manage their intellectual property, either by legally defending or monetizing their content. Some, like The Associated Press, have arranged licensing deals with OpenAI for its data in exchange for compensation. Others, like The New York Times, have sued OpenAI and Microsoft over AI use of copyrighted content. Additionally, publishers are diversifying traffic from newsletters and subscriptions and investing in their own generative AI chatbots to attract traffic.

Key takeaways:

  • Google's Search Generative Experience (SGE) could cause a significant disruption in organic search traffic, potentially leading to a decline in digital ad revenue for publishers.
  • Estimates suggest that ad revenue loss could amount to as much as $2 billion annually across the publishing industry due to the current SGE.
  • Publishers are preparing to combat the predicted SGE traffic impact by retooling their SEO strategies, investing in content expertise, and diversifying traffic.
  • Some publishers are managing their intellectual property by legally defending or monetizing their content, arranging licensing deals with OpenAI, or investing in their own generative AI chatbots to attract traffic.
View Full Article

Comments (0)

Be the first to comment!