Google’s generative search experience can result in a substantial loss of advertising revenue for publishers, potentially as much as $2 billion.
The AI-powered search engine is expected to cause a significant decrease in search traffic, ranging from 20% to 60%.
According to Marc McCollum, executive vice president of innovation at Raptive, such a sharp drop in search traffic for publishers is likely to cause a sharp decline in digital ad revenue.
SGE study. Raptive, the company responsible for ad sales for titles such as Half Baked Harvest, MacRumors and Stereogum, conducted two analyzes to investigate the potential impact of SGE on search traffic: one in September 2023 and one in last month. The company’s researchers compared Google’s current SERPs with the new SGE results for the top 1,000 keywords that bring traffic to their websites.
results The researchers noted that some keywords showed no SGE results, while other SGE answers featured links to Raptive websites. Using an internal program to calculate expected click-through rates, Raptive concluded that there was an average expected loss of traffic.
Decrease in search traffic. Commenting on his team’s findings, Raptive’s executive vice president of innovation, McCollum, said AdWeek:
“When fully implemented, SGE could result in a 25% decrease in search traffic across its network of 5,000 publishers.”
Why we care Google SGE is expected to significantly impact publishers’ ad revenue, so ad revenue strategies need to be reassessed. However, since SGE is still in beta, it’s unclear exactly how it will affect ads. This uncertainty can pose challenges when trying to adapt strategies without knowing the specific changes.
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deep dive. Read our guide on how SGE could affect your search traffic to learn more.
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