People Inc. core web sessions fell 26% as Google AI Overviews expanded, while licensing revenue rose 49%
TLDR
People Inc., owner of PEOPLE and Allrecipes, reports licensing revenue up 49% to $52.7 million while digital ads fell 8%, and its core web sessions dropped 26% as Google AI Overviews spread.
Optimixed Overview
Optimixed's original report on this story.
People Inc., the owner of PEOPLE and Allrecipes, saw licensing revenue climb 49% to $52.7 million while digital ads fell 8%, according to PPC Land. The report ties a 26% loss in core web sessions to the spread of Google AI Overviews, and it asks whether non-search sales can reach half of digital revenue by 2027.
How we got here: earlier coverage
On November 2, Google moved AI Overviews for brand searches to the right column, and buyers told Digiday that 10% to 30% of search budgets now face new scrutiny. On November 3, People Inc. said its Google search referral traffic was down 70% over the past two years and that it was shifting toward revenue beyond site visits. Now, People Inc. reports licensing revenue up 49% to $52.7 million and digital ads down 8%, while its core web sessions dropped 26% as Google AI Overviews spread.
Summary of earlier coverage
- Nov 6Ziff Davis Google search traffic falls 37% in a year as AI answers cite its sites 2.7bn times
Ziff Davis lost 37% of its Google search traffic in a year as Google's AI answers cited its sites 2.7 billion times while sending back far fewer clicks.
- Nov 3People Inc. Reports 70% Drop in Google Search Referral Traffic and Pivots Toward Non-Session Revenue
People Inc. says its Google search referral traffic is down 70% over the past two years and is shifting toward revenue beyond site visits.
- Oct 29Google's Core Ad Revenue Growth Slows in Q3 Even as AI Search Drives Higher Query Volume
Google's core ad revenue growth slowed in Q3 even though query volume rose, driven by AI features.
- Oct 29Google Search Revenue Growth Slows to 12% in Q2 as YouTube Ads Slow to 9%
Google Search revenue growth slowed to 12% in Q2 from 17%, YouTube ads slowed to 9%, and advertisers still cannot see AI Mode pricing because no paid click or CPC data is available.