Google could soon be experiencing a host of financial woes all thanks to its Search Generative Engine endeavor.
The company’s AI-based initiative could mean losses that go up to $2 billion due to a traffic decline of approximately 20% to 60%. That’s a major fall and not one that any tech giant would appreciate considering the toll on ad revenue that it would take.
The fact that Google is expecting the launch of SGE to trigger this rollout is just mindblowing for some as the fall in search traffic is not small but quite steep. Remember, the direct effect that this has is on ad revenue as per experts.
The news comes after a recently published study in the form of two analyses was carried out to determine the impact that this would have on Google’s traffic. And when results from last year were compared to those right now by looking at the latest SGE for the leading 1000 keywords that bring traffic to these websites, some people were just shocked.
The drop was massive and seeing the huge traffic loss was not a pretty sight. And what’s interesting is that the whole Search Generative Experience is not even fully rolled out. For now, it’s just entered the beta phase but to have such a devastating impact at this stage, one can only imagine the outcome arising in regards to how ads function.
And yes, this kind of uncertainty isn’t something that would be appreciated as it could give rise to more problems when the Android maker is trying its level best to take on more strategies without realizing the changes that need to be made.
Image: DIW-Aigen
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