AI Shifts Spur 40% Drop in Israeli Ad Tech Firms Taboola, Outbrain
Translated & summarized from TheMarker by baba
Israeli ad tech firms Taboola and Outbrain are facing sharp declines in traffic and ad revenue due to AI-driven changes in online content consumption. Outbrain estimates traffic drops of up to 60% on partner sites, while Taboola reports shorter user engagement times, leading to fewer ad views. The CEO of Taboola cited user preference for information presented upfront as a factor. These changes are impacting the digital advertising landscape for Israeli companies.
The story in 5 lines · by baba
- Israeli ad tech firms Taboola and Outbrain have seen traffic and engagement plummet due to AI.
- Outbrain estimates traffic drops of up to 60% on partner content sites.
- Taboola reports users are spending less time on sites, seeing fewer ads.
- AI summaries, like Google's, are cited as a key factor in the user traffic decline.
- Taboola's CEO stated users want information presented at the top.
Israeli digital advertising companies Taboola and Outbrain (formerly Tides) are experiencing a significant downturn due to changes in online content consumption habits driven by artificial intelligence. New estimates from Outbrain suggest that some content sites partnered with the company are seeing traffic declines of up to 60%. Taboola has reported shorter user engagement times on websites, resulting in fewer ad impressions. The CEO of Taboola stated, "They want the information to appear at the top." This shift is attributed to AI-powered content summaries, such as those implemented by Google, which are exacerbating the decline in user traffic to sites working with Outbrain, with reported drops ranging from 20% to 60%. Users visiting Taboola client sites are reportedly leaving pages more quickly, exposing them to fewer advertisements.