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Site Traffic Down? Google Just Made Some Big Search Changes
Google is now doing the Googling for its expansive U.S. audience — and news publishers are facing potentially multi-billion-dollar consequences caused by the change.
Google announced on Tuesday that it is applying AI to high-impact elements of search, from AI summaries to pages of AI recommendations in clustered groups. AI summaries, which appear at the top of search results and neatly summarize content found across the web, started rolling out on Tuesday to all of Google’s 246 million unique U.S. users.
The AI summaries mean that websites across the board will get less traffic, as people simply search and read what the AI has generated without clicking on anything.
As newsrooms get less traffic and less money, their ability to create fresh content diminishes. At the same time, Google becomes less of a gateway to sources and more of a direct source Anastasia Kotsiubynska, Head of SEO at SE Ranking, shared with Entrepreneur.
“Most likely, there will still be misleading information in search results and hallucinations, and many users will probably use this information without double-checking,” Kotsiubynska cautioned.
Google I/O 2024 on May 14, 2024. (Photo by Christoph Dernbach/picture alliance via Getty Images)
Google’s search changes could cost websites $2 billion collectively; some could lose two-thirds of their traffic, according to data from media industry growth company Raptive.
“This will be catastrophic to our traffic, as marketed by Google to further satisfy user queries, leaving even less incentive to click through so that we can monetize our content,” Danielle Coffey, the chief executive of the News/Media Alliance, told CNN Business.
This is Search in the Gemini era. #GoogleIO pic.twitter.com/JxldNjbqyn
— Google (@Google) May 14, 2024
Google, a major tech company with over 90% of the global market share in search, can now frame search results however it wants with AI summaries, and pull from websites without guaranteeing site traffic or profit.
Related: Two Yale PhDs Are Trying to Make AI Hallucinate 10x Less
“AI Overviews relies on content creators’ intellectual property, which raises serious questions about compensation and fairness,” said Raptive in a statement.
Google does link to sites within its summary, citing its sources.
Unlike OpenAI, which has entered into deals with major publishers like Axel Springer and The Financial Times to compensate publishers for training AI on their articles and linking directly to them, Google has yet to publicly announce a similar deal with a major publication.
OpenAI has also earned the ire of some publishers, with the New York Times filing a lawsuit against the company over copyright grounds in December.
Google does have a $60 million deal with Reddit, announced in February, to train its AI on Reddit data.
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How to Grow a Business: Yum! Brands Co-Founder David Novak
As the co-founder and former CEO of Yum! Brands, one of the world’s largest restaurant companies with a portfolio including franchises like KFC and Pizza Hut, David Novak drove tangible results.
In the 17 years he was CEO, from 1999 to 2016, Novak helped scale the company to eight times its original size, from a market capitalization of $4 billion to $32 billion. However, Novak credits the numbers to a more qualitative than quantitative aspect of leadership — creating the right work culture.
In a conversation with Masters of Scale host Jeff Berman that aired earlier this month, Novak explained how he steered Yum! Brands from the beginning.
“I made my number one priority to really create a powerful culture where everyone counts,” Novak said. “That became job number one for me as a CEO, because if I can create that right work environment, people will innovate and people will go further.”
Novak explained that early on, he tried to learn from companies that were winning or consistently delivered good results. He went out and visited companies including Walmart, Home Depot, and General Electric.
“We met with them,” Novak said. “Then we came back and we codified what’s really driving the success of these companies that allow them to get to great results year after year.”
Novak, who oversaw 1.5 million employees globally, began emphasizing recognition and encoding it into Yum!’s culture. In previous interviews, he talked about how he would use recognition to motivate employees. In one case, at KFC, Novak gave away rubber chickens and $100 as an award for a job well done.
Today, Yum!’s culture remains one of recognition and collaboration, per its public-facing culture page.
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Amazon CEO Mandates Employees Return to Office 5 Days a Week
Amazon CEO Andy Jassy made a case — and a mandate — for in-office work on Monday.
In a publicly available message, Jassy said that Amazon’s 1.5 million-plus employees must return to the office five days per week starting January 2. Amazon is also bringing back desk assignments to the offices that had that structure pre-pandemic.
Jassy positioned the move as a better way to work and a return to life before Covid.
“We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture; collaborating, brainstorming, and inventing are simpler and more effective; teaching and learning from one another are more seamless; and, teams tend to be better connected to one another,” Jassy stated.
Amazon CEO Andy Jassy. Photo by Michael M. Santiago/Getty Images
Jassy also said that situations that require remote work like sickness, an emergency, or being on the road are still acceptable.
However, these examples of remote work are the exception to the new rule, not the norm.
Amazon employees have been back in the office at least three days per week as of February 2023. A July report from Bamboo HR showed that one in four executives secretly hoped employees would quit over stricter return-to-office policies.
“Strengthening our culture remains a top priority for the s-team [senior leadership team] and me. And, I think about it all the time,” he wrote. “We want to operate like the world’s largest startup.”
Under the new policy, working from home two days per week is no more. The office culture is returning to how it was before the pandemic, to strengthen work culture and drive better results, Jassy explained.
Related: Dell Reportedly Told Remote Employees to Come Back to the Office or Forgo the Chance to Be Promoted
Amazon joins companies like Salesforce and Walmart that have implemented stricter return-to-work policies.
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Prepare to Land a Position in IT With This CompTIA Training Bundle
Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.
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