Google isn't kidding around about cost cutting
11 hours ago
- #Publishers
- #AI
- Google is ending its enterprise subscription to the Financial Times as part of broader cost-reduction efforts.
- Google has been implementing cost cuts, including eliminating 35% of managers overseeing small teams and offering voluntary exit programs.
- Referral traffic from Google Search to publishers has declined, with median traffic dropping 10% and non-news brands seeing 14% drops.
- Major outlets like CNN, Business Insider, and HuffPost have experienced even sharper traffic declines (30%, 40%, and 40%, respectively).
- Google's AI Overviews feature has reduced click-throughs to external websites by 56% to 69% since its launch.
- Google has resisted content licensing deals, unlike OpenAI, which has signed agreements with major publishers.
- Google reportedly began exploratory talks with 20 outlets about content licensing deals this summer.
- Publishers criticize Google for using the same bot to crawl websites for search and AI features, calling it a 'bad actor.'
- Google's AI overviews are creating a 'zero-click' environment, where traffic dead-ends at Google.