Media Briefing: Publishers debate the value of AI licensing and GEO

At the recent Digiday Publishing Summit in Vail, Colorado, publishing executives gathered to discuss the rapidly evolving landscape of AI search and its impact on the industry. While there was optimism about the potential for increased visibility in AI-driven search results, concerns about the lack of traffic and revenue from AI licensing deals and marketplaces have raised doubts about the long-term value of these opportunities.

One of the key topics of discussion was the concept of GEO, or Generated and Optimized content, which refers to the practice of creating content specifically tailored to AI algorithms in order to improve visibility in AI search results. While some publishers have reported success in gaining traction through this approach, many executives expressed skepticism about the sustainability of these efforts. The primary concern revolved around the lack of measurable traffic and revenue generated from these AI-optimized articles.

"We've seen some initial gains in visibility, but the actual traffic and revenue just aren't there yet," said one publisher during a closed-door town hall session. "It's hard to justify the investment in creating all this new content when the payoff isn't clear."

Another major topic of debate was the potential for revenue from AI licensing deals and marketplaces. While some publishers have explored partnerships with AI companies to license their content, the results have been mixed. Many executives expressed frustration with the opaque nature of these deals, which often fail to provide clear value or sustainable revenue streams.

"The problem with AI licensing is that it's not always clear how much value we're actually creating for these companies," remarked another publisher. "We need to make sure we're not just giving away our content for free, and that we're getting something tangible in return."

Despite these concerns, there were also glimpses of potential success in the AI space. For example, AI has shown promise in enhancing opinion and tech journalism, with some publishers reporting increased engagement and readership in these areas. Additionally, companies like Versant have expressed interest in licensing podcast content from publishers like Vox Media, highlighting new revenue opportunities in the audio space.

As the industry continues to navigate the complex relationship between AI and publishing, it's clear that there is a need for transparency and collaboration between publishers and AI companies. Only by working together can both parties ensure that the potential benefits of AI are realized, while also addressing the challenges and concerns that have been raised.

In the meantime, publishers will need to carefully weigh the costs and benefits of investing in AI-optimized content and licensing deals. While the long-term value of these opportunities remains uncertain, it's evident that the industry cannot ignore the growing influence of AI on the publishing landscape. As such, continued dialogue and strategic planning will be essential in shaping the future of content creation and distribution in the age of AI.