Reach warns digital revenue under pressure as Google traffic declines
Reach said its digital earnings fell sharply in Q3, blaming industry-wide traffic loss from Google's AI Overviews, and remains cautious on the full-year outlook.
Reach disclosed that its third-quarter revenue fell 14.1%, driven by a digital revenue slump of over 20% as Google’s AI Overviews reduced referral traffic to news sites. The company said print advertising held up thanks to the FIFA World Cup, and that licensing agreements for AI technology generated additional off-platform income. In response to the pressure, Reach is reshaping its operations, shutting down certain print locations and pursuing cost-saving measures.
Shares dipped as much as 4.3% before stabilising later in the session. Despite the challenges, Reach maintains that it is on track to meet full-year market expectations. The broader industry faces similar issues as AI chatbots and search-engine answer boxes cut into traditional traffic and ad revenue.
Why it matters
The story shows how AI-driven search changes are hurting news publishers' digital income.
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