Reach sales slide as online views dented by Google AI
- Shares in London-based Reach plunged by almost a quarter on Wednesday as the Daily Mirror and Daily Express publisher reported a 9% drop in total revenues to £232.9 million for the six months to June 30.
- Digital revenues dropped to £54.2 million from £61.1 million after Reach was hit by a "lower volume" of referrals from online platforms, mainly linked to Google search overviews.
- Print revenues fell 8.3% to £178 million for the first half, while adjusted pre-tax profits dipped 5% to £40.3 million despite advertising revenues being boosted by the World Cup.
- Boss Piers North, chief executive of Reach, said the group seeks "greater independence from referral traffic" through subscription and video growth, adding the future will focus on original content over volume.
- Last September, Reach planned to cut more than 320 journalism jobs, and the group expects sector headwinds to "persist" into 2027 despite maintaining targets for the remainder of this year.
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Google Faces Publisher Backlash As AI Search Overviews Threaten Digital Revenue Model – channelnews
Publishers are reportedly considering blocking Google’s AI systems over growing concerns that AI-generated search summaries are reducing website traffic and advertising revenue. According to reports, Reddit is reviewing its relationship with Google, despite having a major content licensing agreement worth around US$60 million per year, that allows Google to use Reddit content for AI training. The issue centres around Google AI Overviews, which provide AI-generated answers directly within search results. The problem for publishers is that this function potentially reduces the need for users to click through to the original websites or the publishers. There are a number of publishers reportedly examining the issue and exploring their options, namely Reddit, USA Today, Reuters, Politico, The Economist and People Inc. USA Today has reported a significant decline in Google referral traffic and is reportedly considering restricting Google’s access over concerns that the AI summaries are undermining the traditional search-driven publishing model. The traditional model for digital media businesses relies on advertising, as measured by site traffic. Publishers argue this model is being disrupted as Google is using its content to power AI answers while reducing the number of visitors sent back to the original publishing sources. The dispute represents a major shift in the relationship between technology platforms and content creators. Publishers are reconsidering whether visibility on Google Search continues to be worth providing unrestricted access to their content. According to Google, however, its AI summaries still send traffic to publishers, with the company arguing website owners have controls over how their content is accessed and used. A broader industry concern is being brought into view, that AI search could disrupt the digital advertising ecosystem, where publishers have historically relied on search rankings and clicks to generate revenue. For technology companies on the other hand, the issue highlights a growing conflict over AI training data, content licensing and the economics of online information, particularly as platforms continue to race toward building AI-powered search.
Google's AI overviews provide answers to millions of people every day. A recent verdict clearly strengthens the rights of those affected in the event of false statements.
Reach sales slide as online views dented by Google AI answers
The newspaper publisher said page views on its platforms dived by 40% for the past half-year.
AI Overviews Now Answer Most Local Searches – How To Get Your Business Cited
AI Overviews are outpacing local packs across 15+ markets. Here is what location pages need to stay visible in AI-generated answers. The post AI Overviews Now Answer Most Local Searches – How To Get Your Business Cited appeared first on Search Engine Journal.
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