What changed
Reddit CEO Steve Huffman revealed that the platform lost over one million Google search referrals per week in October, attributing the decline to Google's AI Mode and AI Overviews. He stated, "AI Mode does not drive traffic. Not for us, and not to anybody as far as I know. That's just a fundamental shift in how Google works." This comes as Google's stock also dropped following the announcement.
What this means in practice
Huffman explained that Reddit's user demand has not changed, but the platform has lost significant traffic from Google searches. In response, Reddit is testing login walls outside the U.S. to curb scraping and reduce its reliance on the open web. Huffman views this as a trade-off between less reach and deeper engagement. Additionally, data licensing talks with AI providers continue, though it's unclear if Reddit will pursue further deals.
Limitations and availability
The supplied announcement does not specify the exact impact of AI Mode on other websites or the long-term effects on traffic for businesses reliant on Google. It also does not detail the specifics of the login walls being tested or the outcomes of ongoing data licensing discussions. The situation highlights a structural risk for any business dependent on Google for traffic.
