Layla Al-Khalifa

AI summaries decimate online traffic for publishers

LONDON: The Impact of AI Overviews on Online News Consumption

When actress Sorcha Cusack departed from the BBC drama Father Brown in January, it sent shockwaves through the media world, capturing headlines in newspapers like The Mirror and the Daily Express, both owned by Reach.

However, the buzz generated by the story fell short of Reach’s expectations, partly due to the rise of AI Overviews (AIO) – a feature that provides a summary at the top of Google search results.

This shift in user behavior has raised concerns among newspapers and media publishers, who are already grappling with declining advertising revenue from social media platforms.

Dr Felix Simon, a research fellow in AI and news at the Reuters Institute for the Study of Journalism, University of Oxford, highlighted the potential impact of AI overviews on click-through rates, citing a statement from DMG Media that reported a significant drop in click-through rates.

David Higgerson, chief digital publisher at Reach, emphasized the importance of fair compensation for publishers, noting the imbalance in benefits between content creators and distributors like Google.

Google’s new tool, AI Mode, presents search results in a conversational format with fewer traditional links, posing additional challenges for publishers seeking to drive traffic to their sites.

Despite these challenges, Google defended its role in driving traffic to websites and highlighted the evolving search behavior of users in response to AI Overviews.

In response to these changes, publishers are exploring strategies to adapt to the evolving landscape of online news consumption, focusing on engaging audiences through platforms like WhatsApp and newsletters.

As the industry navigates these shifts, publishers are striving to maintain their relevance and reach in a digital ecosystem increasingly shaped by AI-driven technologies.