WikiHow CEO Highlights Google’s Role Amid Ad Tech Trials
In a testimony that underscores the complexities of the ongoing antitrust trial against Google, WikiHow’s CEO Elizabeth Douglas described the search giant as both a benefactor and a bane for her company. Douglas emphasized that Google’s advertising tools supply vital stability to WikiHow despite the turbulence caused by shifting user behaviors influenced by new AI technologies, reports 24brussels.
During the trial, Douglas conveyed that websites like hers are struggling in what she termed an “AI apocalypse.” The advent of AI tools, including chatbots and Google’s AI Overviews in search results, has led to a significant decrease in user engagement with traditional web pages, which results in fewer ad clicks on those sites and declines in ad revenue.
Despite acknowledging the impact of Google’s evolving role, Douglas expressed confidence in the advertising tech services provided by Google. She stated, “The Google-powered ad setup is the stable part of my business right now,” even as the revenue from this segment decreases. WikiHow also generates 10 to 15 percent of its revenue through a licensing agreement with Google, which allows the tech giant to utilize WikiHow’s content for its AI Overviews.
As the trial progresses, Judge Leonie Brinkema will determine the appropriate remedies for what the U.S. Department of Justice describes as Google’s illegal monopolization of the ad tech market. The DOJ has signaled that potential remedies might include a divestiture of Google’s advertising exchange, AdX, and its ad management tool, DFP. Google, during the trial, has argued that such actions could create new challenges for clients and exacerbate the existing pressures on smaller publishers. Douglas’s testimony illustrates the precarious position of firms like WikiHow caught between the evolving market landscape and the actions being considered by regulators.
The discussion around “Google Zero” highlights an emerging trend where users receive answers directly from Google search results, reducing the need to visit external sites. This increasingly prevalent feature diminishes referral traffic for traditional publishers, affecting their ability to monetize website visits through ad placements. Google has disputed claims that its AI Overviews consistently prevent users from navigating to external sites, yet it acknowledged in court filings that “the open web is in rapid decline,” a statement it later clarified pertained to open web display advertising.
Douglas’ concerns extend beyond the current operational dynamics. She argued that a forced breakup of Google’s ad tech tools could hinder publishers’ capacity to remain adaptive amid changing consumer behaviors. She expressed apprehension that a new buyer might not sustain the support she currently receives from Google, potentially impacting her revenue further.
However, as the government initiated a cross-examination of Douglas, it emerged that her understanding of Google’s past anticompetitive practices was limited. The court has previously found that Google employed higher rates through AdX than would exist in a competitive marketplace, a charge Douglas was unaware of due to her focus on the end prices she receives.
Overall, while Google poses significant challenges for WikiHow and similar websites, it simultaneously serves as a critical partner in their operations, creating an intricate relationship in an evolving digital landscape. The implications of the trial could reshape not only Google’s ad practices but also the strategies smaller publishers must adopt to survive.
