The emergence of generative AI is reshaping the digital publishing landscape, undermining the link economy that has long driven traffic to publishers' sites. Google's deployment of AI Overviews and AI Mode, providing direct answers to user queries, effectively sidelines traditional publishers who rely on search-driven traffic. This has led to dramatic decreases in traffic, with numerous major news outlets experiencing over a 50% decline in readership, accompanied by substantial layoffs. In response, publishers are attempting to foster direct reader relationships through newsletters and events while contemplating future strategies in a rapidly evolving digital environment.
"Since the mid-aughts, the link economy has defined how traffic moves across the internet, but generative AI is fundamentally changing this dynamic, posing existential threats to publishers."
"Google’s introduction of AI Mode offers synthesized answers that overshadow traditional links, directly impacting publishers who are experiencing significant drops in audience engagement and layoffs."
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