AI search could hit UK web publishers' advertisement, revenue models - Berenberg
15/03/2023 08:34
** Berenberg says AI-powered search could reduce search
traffic to UK's web publishers, leading to headwinds to
consumer-driven advertising and affiliate revenue models
** Brokerage expects headwinds to search traffic but no
meaningful impact on non-web traffic such as social media, video
streaming, subscriptions and email
** British media company Future FUTR.L could be most
negatively affected, although the impact is more than baked into
valuation; cuts PT to 1,780p from 2,600p
** Shares of FUTR down 1.96% at 1,148p
** Berenberg says British insurance-price comparison website
Moneysupermarket.com MONY.L will be unaffected
** Adds social and video-focused web publisher LBG Media
LBG.L and subscription-driven CentralNic CNIC.L will not
only be safe, but may even derive some benefit from disruption
to other digital advertising models
** Business-to-consumer web-based advertising is most
affected due to traffic headwinds, while affiliate marketing for
homogenous products is likely to be significantly affected -
Brokerage
(Reporting by Siddarth S in Bengaluru)
((Siddarth.s@thomsonreuters.com;))