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| Google's AI Traffic Surge: Real Win or Boiled Frog? |
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| Google's latest tweak to AI Overview pegs itself as a shiny new traffic lifeline for publishers – or so it seems. With direct links now peppered into AI-generated search results, some publishers report a traffic bump, and Google is playing up the feel-good vibes. While the search giant touts its updates as a win for content discovery, many publishers are squinting at the fine print, asking, "What's the catch?" It’s reminiscent of Google’s long history of playing both the hero and villain in the advertising ecosystem. Folks like Ziff Davis CEO Vivek Shah says it hasn’t been all that bad – AI Overviews showed up in only 8% of their key search queries. Yet, at a recent creator’s event in New York, Raptive CEO Michael Sanchez warned that AI-driven search could slash traffic by up to 50%, which means publishers could take a massive hit to their revenue streams. Google's play here mirrors their broader zero-click search strategy, where users find answers directly on Google without ever leaving the site. Sparktoro data shows zero-click searches have steadily risen, keeping more traffic within Google's ecosystem and away from publishers' content. Raptive Chief Strategy Officer, Paul Bannister, says they’re “boiling the frog.” This slow, steady shift means publishers are losing out incrementally, without even realizing the full impact until it's too late. As if that wasn’t bad enough, ads are slipping into AI Overviews, but only when there's "commercial intent." Call it another layer of Google's long game: prioritizing their outcomes, while sidelining everyone else. Scott Messer called it back in May, when he said, "Google is playing a fundamentally different game," optimizing for its own ad revenue. This latest round of updates could be Google’s way of asserting dominance while tossing a few scraps to publishers. While reassuring publishers that AI Overview is "good for them,” Google is inching toward owning more of the user journey. Is this reported traffic spike a sign of goodwill, or are publishers getting boiled alive in Google’s strategy? Of course, publishers need to adapt, but how is the question? It’s definitely not by playing Google’s game. Maybe it's time to find new ways to protect content and revenue while still advocating for responsible AI use. After all, the open web thrives on real, diverse voices – something algorithms and automated summaries can’t replicate. — LdJ |
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| Was California’s SB 1047 Veto a Roadblock or a Smarter Move? |
| When it comes to privacy, California led the charge on US state regulation. If you were looking for the same result with AI regulation, hold your breath, that won't come anytime soon. California's Governor has already stopped the new AI bill dead in its tracks. While SB 1047 was supposedly our saving grace, some critics felt it was inefficient — thinking the bill would hinder innovation and be ineffective against actual threats. Is this why Governor Gavin Newsom pressed pause on the bill? In an official statement, Newson stated he didn’t believe SB 1047 was “the best approach to protecting the public from real threats posed by the technology.” Tick…Tock…Tick…Tock. This unfortunate AI regulation setback is slowing down the regulation timeline. Since Europe is ahead of the curve, the best outcome will be if federal regulators propose robust legislation. Still, if a state as influential as California could get an AI bill on the books, it could be the domino effect we all need. However, pressing pause on the most effective AI bill was a smart move by the Governor. Alon Yamin, co-founder and CEO of Copyleaks agrees that Governor Newsom’s veto will help create a better bill. He said, “By avoiding broad and restrictive measures as well as placing development back in the hands of small entrepreneurs and academia, California has the opportunity to create guardrails that ensure AI is used responsibly, particularly in high-risk environments involving the handling of sensitive data.” This is particularly true for ad ops folks who are handling consumer data and want to keep their trust. We don’t want to become the villain with AI. Especially while the industry is still reckoning with its murky history with data privacy. – AB |
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| Is Big Tech Getting the Message? Meta’s Global Data Struggles Continue |
| Are you all tired of hearing about big tech in the news? Well, they keep finding themselves caught in the middle of the headlines. This time it’s Meta facing some more heat in the EU. The European Union’s top court ruled against Meta’s data retention policies, deciding that social networks like Facebook cannot retain user data for ad targeting indefinitely. Meta also faced a similar ruling in Australia a couple of weeks ago. Is the industry still playing around with consumer consent? It seems so, but I’m sure Meta and other big social platforms will get the message after this string of rulings. Enforcing GDPR’s data minimization principles, the ruling requires limits on data retention. Violations could result in fines of up to 4% of a company’s global annual revenue, potentially costing Meta billions. If anything can help a major power fall in line, it is the threat of losing billions in revenue. Capital is a language that all countries speak and big tech is learning that the hard way globally. – AB |
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