What happens when AI takes your web traffic away?
Plus: Bad news for Meta, Good news for TikTok, and everything else going on this week in the world of digital marketing
We start off this week with an interesting thinkpiece which is now about to play out in the courts. We’ve heard how AI is going to revolutionise the way people engage with search and by extension with the internet - but what about those websites left behind? What about those who are dependent on search traffic for revenue?
Chegg, an education technology company, is suing Google over its use of AI overviews, stating that it has caused damage to its traffic and revenue. As the CNBC report states, ‘Google forces companies like Chegg to “supply our proprietary content in order to be included in Google’s search function,” said Schultz, adding that the search company uses its monopoly power, “reaping the financial benefits of Chegg’s content without having to spend a dime.”’ (not exactly, given Google has announced it plans to invest $75bn in AI this year, but I see the point).
It feels incredibly unlikely that the outcome of this is that Google would have to rethink its AI overviews, but that’s essentially what Chegg wants to happen. Either way, it’s an interesting topic to consider, and one that anyone dependent on digital as part of its revenue needs to think about carefully - how are we preparing for a world where people don’t necessarily need to visit our websites?
This is going to be one of the big themes in the next few months and years, but for now I’ll be watching this case with interest.
It doesn’t just rain for Meta…
It’s wild to think that the news coming out that execs are getting higher bonuses despite cutting 5% of Meta’s workforce isn’t even in the top 3 negative news stories for them this week.
The overall winner for the week is probably the almost unbelievable (and yet, disturbingly believable) approval of AI-generated political ads referencing the gassing of immigrants ahead of German elections. This of course follows the news earlier this year that Meta has removed ‘biased’ fact checkers.
Elsewhere, Meta is facing a lawsuit alleging that it favors hiring cheaper foreign workers over American employees. Finally, it transpires that users are being bombarded with violent and NSFW Reels in their Instagram feeds. Meta has acknowledged the issue but hasn’t explained why it happened. Now, I hate repeating myself, but I can’t help but mention that this of course follows the news earlier this year that Meta has removed ‘biased’ fact checkers.
TikTok driving ROI despite uncertainty
TikTok is at a crossroads in the U.S., with its fate hanging in the balance due to the much-discussed ban, which is still on the cards. But despite this uncertainty, brands continue to find success on the platform.
A recent Dentsu study shows that TikTok ads deliver the highest short-term ROI of any digital channel. For marketers, does this mean doubling down on TikTok now, or diversifying in case of a ban?
On that potential ban - there hasn’t really been any movement now for a few weeks, but we’re at the halfway point in terms of the extra time given to the platform. I would expect we’ll more on this in the next month.
Further Reading
Australia has fined Telegram nearly $1 million for failing to remove illegal content.
YouTube has announced that it is changing the way its mid-roll advertising works, placing ads at natural break points rather than mid-sentence.
LinkedIn is now adding provides newsletter email metrics for publishers, something which is long-overdue.
Finally, this is a great read from a few weeks ago, but still worth a mention: a nuanced take on influencer marketing vs. athlete sponsorships. It’s an interesting look at the influencer world from both sides - plus, it’s full of useful and practical learnings for those new to the world of influencer marketing.
That’s it! If you found this interesting, I would appreciate it if you shared it with your friends and colleagues.
If you’re feeling particularly generous, I won’t stop you from buying me a coffee. Otherwise, I’ll be back next week. See you then! 🫶