Google's AI Overview Causes Publisher Traffic Decline & Estimated $2B Ad Revenue Loss

May 16, 2024 at 5:12:55 AM - Trending 🔥

TL;DR Google's AI-powered tool, AI Overviews, is now widely available in the U.S., leading to a substantial decrease in organic search traffic for publishers and an estimated $2 billion loss in ad revenue. Publishers are partnering with rivals like OpenAI and third-party vendors to monetize content. Despite Google's claim that AI Overviews will generate more clicks for publishers, independent sites are struggling with visibility in Google searches.

Google's AI Overview Causes Publisher Traffic Decline & Estimated $2B Ad Revenue Loss

Google's AI-powered search tool, previously known as Search Generative Experience (SGE) and now rebranded as AI Overview, is now widely available in the U.S. and soon globally. The tool, which has processed billions of queries over the past year, provides fact-based summaries and prioritizes summarized content over publisher websites. This has led to a significant decrease in organic search traffic for publishers, with losses of up to 60% and an estimated $2 billion in ad revenue.

In response, publishers are partnering with Google's rivals like OpenAI and third-party vendors to monetize their content. OpenAI, for instance, has been offering publishers between $1 million and $5 million annually to access their content for training its AI models. Other publishers are working with vendors like TollBit, Calliope, and Copyright Clearance Center to accurately price their content while providing AI companies access to their data.

However, independent publishers and sites are at risk due to these changes. For instance, HouseFresh, a blog focused on air quality, has seen a 91% decrease in search traffic in recent months. Google, on the other hand, claims that the AI-infused search will actually benefit publishers by generating more clicks for the links included in AI Overviews.

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