Publishers are losing Google traffic as AI answers replace links
The way your work shows up in a digital-dominated world is changing lightning fast, starting with the total collapse of Google Search traffic. Why it matters: Google has basically stopped sending people to websites (including our site) for answers and information. Instead, it's using AI to answer them on its platform, in its words. Chartbeat data shared with Axios shows Google Search traffic to…
Google's AI-powered summaries, known as AI Overviews, are diminishing the referral traffic that websites like Reddit once relied upon, according to Reddit CEO Steve Huffman. In an interview coinciding with Reddit's quarterly earnings report, Huffman expressed uncertainty about search-derived traffic due to Google's AI offering. The company historically benefited from referral traffic provided by Google search, which helped Reddit attract users.
However, Google's AI Overviews have pushed blue links further down on search results pages, altering the economics of the internet. Reddit reported strong revenue and earnings for the second quarter, surpassing estimates, yet the stock dropped 11% in extended trading, reflecting Wall Street's concerns about the impact of Google's changes.
Huffman emphasized that the 10 blue links have historically driven significant value for the entire ecosystem, while AI Overviews have yet to make a comparable positive impact. Despite Reddit's robust ad revenue growth, Huffman stated that the company is exploring alternative ways to acquire users, such as focusing on product updates and user retention, while avoiding the high costs associated with AI development.
Written by urgent.news from CNBC Technology's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
