Google’s new AI-powered search results will now include ads directly in the generated responses, raising concerns among news publishers about potential negative impacts on site traffic and advertising revenue. The search and shopping ads are being tested within the AI overviews that have recently rolled out to US users. This move by Google has stirred controversy as it displaces links to content providers that typically appeared at the top of search results.
The company stated that sponsored ads will only be shown when they are relevant to the query and information provided in the AI overview. Google, known for generating the majority of its revenue from digital advertising, faces legal challenges from the Department of Justice and several states for allegedly maintaining an illegal monopoly through its ad technology platform.
Moreover, critics have also voiced concerns over Google and Microsoft-backed OpenAI using publishers’ content to train their AI chatbots without appropriate credit or compensation. This practice has led to an impact on publishers’ audiences. Industry experts predict that the addition of ads in AI overviews will further exacerbate the outcry from publishers and content creators.
In response to the criticism, Google emphasized that AI overviews have led users to visit a wider variety of websites for more complex questions and have increased the clicks on links within AI overviews compared to traditional web listings. The company claims that users are more satisfied with search results when using AI overviews and spend more time on the site through these links.
However, news media advocates remain skeptical and fear that Google’s AI overhaul will significantly hurt news publishers and content creators who rely on search traffic to sustain their operations. The Executive Director of the News Media Alliance expressed concerns over Google’s new product as a “perverse twist on innovation” that could have catastrophic consequences for publishers’ traffic and revenue.
Despite these concerns, Google reassured publishers that news publishers will still receive search traffic and that simpler search queries will continue to yield traditional search result links. The company’s Search Director emphasized the goal of sending valuable traffic to publishers and creators even as they expand the AI overview experience.
In conclusion, the introduction of ads in AI-powered search results by Google has sparked controversy and raised concerns among news publishers and industry experts. While Google aims to improve user experience and generate higher-quality clicks with these ads, the impact on publishers’ traffic and revenue remains a significant concern. Legal battles with the Department of Justice and criticism around the use of publishers’ content for training AI chatbots further complicate the situation for Google. As the company continues to test and expand its AI overview feature, the implications for the publishing industry and content creators remain uncertain.
Article Source
https://nypost.com/2024/05/22/business/google-testing-ads-in-ai-powered-search-as-news-publishers-warn-of-looming-disaster/