Are AI Summaries Diminishing Online Traffic for Publishers?

This article explores the impact of AI overviews on the news publishing industry, particularly focusing on how they affect click-through rates and revenue for newspapers in the UK. As AI-generated summaries become more prevalent in search results, traditional media outlets like Reach and DMG Media are expressing concerns about losing audience engagement and advertising revenue.

Last updated: 28 October 2023 (BST)

Key Takeaways

• AI Overviews (AIO) are reportedly decreasing click-through rates for publishers by up to 89%.
• Concerns are growing among media outlets about the financial implications of AI-generated content.
• Legal actions are being initiated against Google to protect publishers' content rights.
• Media organisations are exploring new strategies to attract audiences amidst declining traffic.
• Google claims its search features send billions of clicks to websites despite industry concerns.

The Rise of AI Overviews in Search Results

In January 2023, actress Sorcha Cusack's departure from the BBC drama *Father Brown* generated headlines, but the coverage did not attract the expected attention. This decline in engagement is reportedly linked to AI Overviews (AIO), which summarise content at the top of Google search results. Instead of navigating to news sites, many users are satisfying their curiosity with these AI-generated snippets.

The Effect on Click-Through Rates

Media outlets, particularly those under Reach, have noted a significant drop in click-through rates since the introduction of AIO. Research by DMG Media indicates that these rates have plummeted by as much as 89%, raising alarms about the viability of traditional news publishing. The dramatic fall in traffic means less opportunity for monetisation, as fewer clicks translate to decreased advertising revenue.

Understanding the Concerns of Publishers

David Higgerson, chief digital publisher at Reach, articulates a growing frustration within the industry. He highlights that publishers create content that fuels Google’s search engine yet receive minimal financial return when users bypass their sites for AI summaries. This disparity raises questions about the fairness of the current digital content landscape.

The Implications of AI Mode

The situation is exacerbated by Google's introduction of AI Mode, a feature that presents search results in a conversational format, often featuring fewer links to original content. Higgerson warns that if Google fully adopts this model, it could severely undermine the financial sustainability of news publishers. "We are definitely moving into the era of lower clicks and lower referral traffic for publishers," he remarks.

The Response from the Publishing Industry

Despite the challenges posed by AI Overviews, not all media companies are experiencing a decline in traffic. Stuart Forrest from Bauer Media notes that while they haven't seen a drop yet, the concern remains that as users become accustomed to AI-generated content, traffic may eventually be affected. He stresses the importance of adapting strategies to maintain audience engagement.

Google’s Defence

In response to the mounting criticism, Google maintains that it prioritises sending traffic to websites. Liz Reid, head of search, stated that the volume of clicks from Google search to websites has remained "relatively stable" year-over-year. She argues that AI Overviews encourage users to ask more detailed questions, potentially increasing opportunities for clicks on related content.

Legal Challenges and Industry Actions

As the tension between publishers and Google escalates, some organisations are taking legal action. In July, a coalition including the Independent Publishers Alliance and tech justice non-profit Foxglove lodged a complaint with the UK's Competition and Markets Authority (CMA). They claim that Google is misusing publishers' content, urging for protective measures against the detrimental effects of AI Overviews.

Adapting Strategies to Maintain Relevance

In the face of these challenges, publishers are actively seeking ways to adapt. Higgerson highlights the importance of optimising content to ensure it ranks well in search results and is cited over competitors. This involves maintaining high-quality content while experimenting with different presentation styles to attract readers back to their platforms.

Finding New Avenues for Audience Engagement

Beyond search optimisation, media organisations are exploring alternative methods to engage their audiences. Higgerson emphasises the need to build relationships across various platforms, such as WhatsApp alerts and newsletters. These initiatives aim to cultivate a loyal audience base, encouraging users to return to their websites rather than relying on third-party summaries.

The Future of News Publishing in the AI Era

The advent of AI technology in search engines presents both challenges and opportunities for the news publishing industry. While the immediate impact appears negative, there is potential for innovation in content delivery and audience engagement strategies. Publishers must remain vigilant and flexible to thrive in this evolving landscape.

FAQs

What are AI Overviews?

AI Overviews are AI-generated summaries displayed at the top of Google search results, providing concise information without requiring users to click through to the original content.

How do AI Overviews affect click-through rates?

Reports suggest that AI Overviews can lead to substantial declines in click-through rates for publishers, with some claims indicating a drop of up to 89%.

What are publishers doing in response to AI Overviews?

Publishers are adapting their strategies by optimising content for search engines, exploring new engagement platforms, and even taking legal action to protect their content rights.

Is Google still sending traffic to publisher websites?

According to Google, the volume of clicks from search results to websites has remained stable year-over-year, despite industry concerns about the impact of AI Overviews.

What legal actions are being taken against Google?

Several organisations have filed a complaint with the UK's Competition and Markets Authority, alleging that Google’s use of AI Overviews misuses publisher content and calls for protective measures.

As the landscape of digital news continues to evolve, traditional publishers face significant challenges and must adapt to the growing influence of AI in search. How will these changes shape the future of content consumption? #AIOverviews #DigitalNews #MediaChallenges