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DEEP RESEARCH · AI SEARCH AND MEDIA

The Question Google AI Search Raises for the Internet Search Market

A newspaper-note framework for tracking how AI search could affect ad-revenue sharing, information creators, and market structure

Published: 2024-05-28 · Newspaper clipping and market questions · Original Naver Blog post

You are responsible for your own investment decisions. This material is research and is not a buy or sell recommendation.

0. Bottom Line First

Google's broader use of AI is not just a product change in search. It raises questions about a smaller internet search market and possible changes in ad-revenue sharing. At this stage there are more questions than conclusions, so I want to keep tracking it.

  • Google reportedly said at last week's developer conference that it is reviewing a contraction in the internet search market due to AI usage.
  • In the previous model, Google shared advertising revenue with information creators; with AI search, I need to watch whether a more monopolistic structure emerges.
  • Other side effects may also appear, so the issue should remain on the tracking list.

1. AI Search and Search-Market Contraction

Official fact: The original note was based on a newspaper item saying Google discussed or reviewed internet search-market contraction as AI usage expands at its developer conference.

Interpretation: My question is what happens to revenue sharing between platforms and information creators when the old model of sending traffic to search results and external sites shifts toward AI-generated answers.

Newspaper image about Google AI and internet search-market contraction
AI Search Transition QuestionsMarket-structure issue raised in the note
Old SearchSearch results and outbound site visits
Ad RevenueSharing between platform and creators
AI SearchAnswers consumed inside search
Watch PointMore monopoly power or other side effects
The conclusion is still open; this remains an issue to track.

2. Korea-Japan-China Summit: Private Cooperation Platform

The other newspaper issue was the Korea-Japan-China summit. China was represented by its premier. Advanced technology was excluded, but the parties discussed expanding cultural and people-to-people exchanges. For now, they reportedly agreed to create a private-sector trilateral cooperation platform.

Newspaper image about the Korea-Japan-China summit and private cooperation platform

3. Interview with the CEO from the LTCM Collapse

The opinion section also had an interesting interview with the CEO associated with the LTCM collapse. The interview said he is investing stably without leverage so that he never goes bankrupt again.

Newspaper image about an interview with the CEO from the LTCM collapse
AI Search

Platform Impact

Search-market contraction and changes in ad-revenue structure need to be tracked.

Northeast Asia

Private Cooperation

Korea, Japan, and China discussed cultural and human exchange plus a trilateral cooperation platform, excluding advanced technology.

Investment Rule

Leverage Caution

The LTCM case brings the issue of leverage and stable investing back into focus.

Sources

Naver original