How Privacy Regulation and Generative AI Are Reshaping Digital Publishing and Advertising

Title: How Privacy Regulation and Generative AI Are Reshaping Digital Publishing and Advertising

Abstract: For years, publishers and advertisers have benefited from their partnership in the digital advertising ecosystem. Advertisers were able to build audiences based on tracking users across different publishers’ webpages and target their intended audience on reputable websites. In return, publishers receive substantial ad revenues that can fund their publishing activities without the need for large subscription fees. Privacy interventions, from governments and platforms, protect user privacy, but threaten the mutually beneficial partnership by reducing the ability to track and target specific audiences. Across several studies, we investigate how publishers and their advertising partners respond to these changes with non-compliance, manipulation, and innovation, and examine the implications of each approach.
More recently, the partnership is under further threat from the advent of generative search engines, such as AI chatbots and Google AI Overviews. Our work documents how generative search engines disrupt the digital information ecosystem. By answering user queries directly on the search engine results page, regularly failing to encourage future exploration, and decreasing the visibility of popular, reputable websites, generative search engines may threaten the sustainability of the high-quality digital publishing industry by reducing traffic and thus ad revenues. For advertisers, generative search changes the mechanisms through which brands can reach consumers. Although it may reduce traditional opportunities to reach consumers through advertising alongside publisher content, emerging strategies such as generative engine optimization may present new opportunities for brands to increase their visibility.

More information on Riley Grossmann can be found here.