Do you remember when e-books were first introduced to mainstream consumers? 2006 marked a pivotal moment for the e-book industry when the Sony Reader launched, with Amazon’s Kindle launching soon after. When e-books hit the stands, it was believed that this technological advancement would mean the end to all bookstores and libraries as we know it. But did that doomsday scenario actually happen?
One of the technological transformations in the past two years that has been keeping owners of publisher sites up at night also happens to be the biggest buzzword in the tech space: we’re talking, of course, about artificial intelligence.
The debate over whether AI is killing organic traffic for publishers is heating up, as AI-powered tools like Google’s Search Generative Experience (SGE) and other large language models (LLMs) change the landscape of search. Publishers are increasingly asking: Will AI make me lose traffic to my site? And more importantly, Will AI make me lose ad revenue from my site?
AI’s Impact on Organic Search
Publishers have long relied on organic search as a key source of traffic, with Google acting as the primary gateway to their content. However, with AI-generated summaries, chat-like answers, and zero-click searches gaining popularity, there’s a growing concern that AI might be hurting traffic that traditionally went to publisher sites.
AI-generated search results, particularly those from Google’s SGE, are indeed reducing the visibility of organic links. Users who once clicked on articles to get the answers to their questions are now satisfied with the summarized answers directly within search results, bypassing publishers entirely.
The shift toward AI-driven answers and “quick solutions” is expected to grow, especially as users become accustomed to faster, more concise answers. For publishers, this could mean fewer clicks and declining organic traffic. The ripple effect? Lower ad impressions, reduced ad revenue, and a need for new strategies to stay competitive.
Opportunity in Evolution
Publishers have long adapted to shifts in algorithms, social media usage, and other consumer behaviors, and this change is no different. There are many ways in which forward-thinking publishers can use AI to their advantage to drive more traffic – and therefore more revenue.
Header bidding, in particular, is experiencing significant advantages from AI. By allowing publishers to optimize their ad inventory in real time, AI can actually enhance ad strategies, leading to more targeted, high-value placements.
AI’s ability to process massive amounts of data also enables it to offer more personalized ad experiences, leading to higher engagement rates. This means that even if there is a decline in traffic to your site, you may find an increase in ad clicks, and therefore an increase in revenue. By embracing AI as a tool to better understand user behavior and ad performance, publishers can unlock new revenue streams, even if organic traffic shifts.
Should Publishers Fear AI’s Impact on Traffic?
The short answer: it depends. If publishers rely solely on traditional SEO strategies, there’s a real risk that AI-powered search results could chip away at their traffic. However, forward-thinking publishers who adapt and diversify their strategies can find opportunities in this new AI-driven world.
Diversifying Traffic Sources: With AI potentially impacting organic traffic, publishers should consider increasing their efforts in direct traffic, email marketing, and social media. Just like any digital marketing strategy, it is important to diversify channel spend and activation.
Monetizing First-Party Data: AI’s role in programmatic advertising opens up new doors for publishers to use first-party data to offer more personalized ad experiences. This strategy can help offset any losses from traditional traffic models and ensure publishers remain competitive in a new landscape.
Choose the Right Ad Monetization Partner: An ad monetization partner who is well versed in ad tech and is accustomed to change and disruption will be able to work with you in driving more revenue without disruption. Remember the panic over a cookie-less world? That never happened, and even if it did, solid ad partners were ready.
Did e-books kill the bookstore and library industry? Not at all – it simply provided a new revenue stream that publishers could use to their advantage, and the same is true of AI for digital publishers. To learn how AI can impact your revenue goals for the better, reach out to our representatives and we’ll discuss your organization’s growth goals and key challenges.
