During a recent trial focusing on Google’s advertising technology practices, WikiHow’s CEO Elizabeth Douglas testified regarding the challenges her platform faces amid evolving online information retrieval methods. She described the current landscape as an “AI apocalypse,” noting that new AI tools, including chatbots and Google’s AI Overviews, have diminished the amount of referral traffic WikiHow receives. This decline directly impacts ad revenues since users are visiting the site less frequently.
Despite the issues arising from these AI developments, Douglas indicated that Google’s advertising tools remain a crucial aspect of her business, even as overall revenue is decreasing. WikiHow also has a content licensing arrangement with Google, contributing 10 to 15 percent of its revenue. However, Douglas expressed concerns over potential regulatory changes that might require Google to divest its advertising assets. Such changes could disrupt the stability that the current Google ad integration provides during this transitional period for her business.
Judge Leonie Brinkema is overseeing the case, which centers on allegations that Google has monopolized the market for publisher ad tech. The Justice Department is advocating for a forced sale of Google’s advertising exchange and management tools, arguing this would restore competition. Google, however, contends that such divestiture might create new challenges for publishers.
Moreover, Douglas articulated her concerns about a potential breakup of Google’s ad services, emphasizing that it might lead to less reliable alternatives lacking the support she currently receives. Her testimony revealed a lack of awareness about certain findings from the court regarding Google’s pricing practices and their impacts on publishers like WikiHow. Ultimately, while Google presents challenges for WikiHow’s business, it is also considered a vital component of its operational framework.
Source: https://www.theverge.com/tech/790711/google-doj-ad-tech-remedies-wikihow-open-web