In a dramatic shift that has left many independent website owners reeling, Google's introduction of AI-generated answers and recent ...
In a dramatic shift that has left many independent website owners reeling, Google's introduction of AI-generated answers and recent search algorithm changes has caused a significant decline in website traffic. According to a Bloomberg investigation, many publishers are reporting traffic drops of 70% or more, disrupting the long-standing relationship between Google and content creators. This crisis has forced numerous small businesses to either shut down or completely reinvent their distribution strategies.
The impact on small businesses
In March 2024, Morgan McBride, owner of the do-it-yourself home improvement site Charleston Crafted, posed for a Google ad campaign celebrating the search engine's role in her business's growth. Just weeks later, traffic from Google to her site plummeted by more than 70%. McBride, who had weathered algorithm changes before, found this time to be different. "You can't just sit around waiting for things to turn around," she told Bloomberg. In the year since the traffic collapse, display advertising revenue on her site dropped by 65%, resulting in tens of thousands of dollars in lost income.
Data and analysis
Data analyzed by Similarweb for Bloomberg showed significant declines across 67 small publisher sites spanning multiple categories. Travel websites, where Google has recently introduced robust AI features, experienced the most pronounced drops. The introduction of AI Overviews, which summarizes content directly in Google search results without requiring users to visit the original sources, appears to be a major contributor to the traffic decline.
Google's response
Google has disputed that AI Overviews damaged website traffic, stating it was "misleading to make generalizations about the causes" of declining traffic "based on individual examples." The company added that traffic can fluctuate due to numerous factors, including seasonal demand, users' interests and regular algorithmic updates to search. However, evidence from multiple sources challenges this position.
Gisele Navarro, managing editor for the air purifier review site HouseFresh, shared internal web analytics with Bloomberg showing that while more people are seeing her content via AI Overviews, fewer are clicking through to visit her site. Sites don't generate revenue unless users click through and see ads or buy products.
Quality concerns
Publishers have also raised concerns about the accuracy of Google's AI-generated content. Morgan McBride noted that for home renovation questions, Google's AI might give unsafe or simply inaccurate advice, such as recommending specific products that don't exist. Jake Boly, founder of That Fit Friend, which reviews training shoes, expressed concern about the sustainability of Google's approach: "I don't understand how Google thinks this is sustainable. If you drive away all enthusiasts and small publishers, then we're going to be overrun by spam and the few players who can afford to pay to play."
Conflicting guidance
The situation has created frustration among content creators who followed Google's longstanding guidance. For years, Google emphasized that website owners should focus on making content driven by experience, expertise, authoritativeness and trustworthiness, or "EEAT," as the set of guidelines is known to publishers. "For years, Google has had the audacity to gaslight us, saying, 'Don't write for search,'" said Mike Hardaker, founder of Mountain Weekly News. "Well, then, who am I writing for?"
Future of AI and search
Google's approach to AI in search is shifting toward providing immediate answers rather than directing users to outside websites. The company has begun testing a new recipe feature that summarizes food bloggers' content directly in Google search. Creators participating in this pilot program receive direct compensation, but according to Marc McCollum, chief innovation officer at media company Raptive, the payments are "not nearly enough to offset declines in their advertising revenue." If fully implemented, Raptive estimates traffic to food blogs would fall by half.
Personal impact
For many website owners, the consequences have been severe. Bloomberg reported that at least three sites whose publishers attended Google's creator summit have had to shut down their operations entirely. Dave Bouskill and Debra Corbeil, a Toronto-based couple who launched travel blog The Planet D in 2008, initially saw their traffic fall by half in the first few months after the introduction of AI Overviews. When traffic plummeted by 90% and revenue declined almost as much, they decided to stop updating their blog. "I do feel betrayed by Google," Bouskill said, with Corbeil adding: "Betrayed, that's the word."
What this means for marketers
This dramatic shift in how search functions has significant implications for the marketing community. The traditional SEO model, where creating high-quality content was rewarded with organic visibility, appears to be fundamentally changing. For marketing professionals, this development necessitates a strategic reassessment of content distribution channels and revenue models. This may include diversifying traffic sources beyond Google Search, exploring direct relationships with audiences through newsletters and social media, and rethinking how content is monetized when fewer visitors reach a website.
The situation also raises questions about the future data ecosystem. If independent publishers continue to struggle, the diversity and quality of information available to train future AI models may degrade, potentially creating a negative feedback loop that impacts the accuracy and utility of AI-generated content.
Conclusion
Google's AI search overhaul has left a trail of devastation in its wake, with many independent website owners facing an existential crisis. The company's efforts to provide immediate answers and streamline user experience have come at a significant cost to the web economy. As the digital landscape continues to evolve, the relationship between tech giants and content creators will need to be redefined to ensure a sustainable and equitable future for all.