Home Publishers Behind The IAB Tech Lab’s New Initiative To Deal With AI Scraping And Publisher Revenue Loss

Behind The IAB Tech Lab’s New Initiative To Deal With AI Scraping And Publisher Revenue Loss

SHARE:
App developers aren’t making as much money as they could from in-app auctions despite the promise of increased average revenue per daily user.

In June, the IAB Tech Lab proposed a new initiative to create guardrails around how AI bots are permitted to access content, with an emphasis on publisher monetization.

It’s hoping that its new solution will get publishers back on their feet – and keep them there.

Publishers are like “the plankton of the digital media ecosystem,” said IAB Tech Lab CEO Anthony Katsur.

Every living thing in an aquatic environment depends on plankton. If they die out, the rest of the ocean goes down with them. And if publishers collapse, that would be an “extinction-level event” for digital media, Katsur said.

Many publishers are still managing to stay afloat, but the water is choppy, with traffic falling off the metaphorical cliff and no metaphorical harness in sight.

A life raft for publishers

The IAB Tech Lab’s initiative, currently called the LLM Content Ingest API Initiative (“which we need to rename,” Katsur joked; it’s “a mouthful”) can be broken down into four major components.

The first is access controls, which determine who is allowed to access a publisher’s content in the first place.

Once controls are established, access terms come into place, such as licensing models and content tiers. Under the IAB Tech Lab’s guidelines, content will be segregated into tiers based on relevance and value.

“Your archival content from 10 years ago is not worth as much as your late-breaking news or your interview with Taylor Swift,” Katsur said.

The guidelines would also mandate logging the use of content, which Katsur defines as “tracking and recording when and how publisher content is accessed or used by an LLM or AI system,” so publishers can accurately invoice and track usage of their data.

Content logging ties into the final part of the initiative, which Katsur believes is the most important facet: tokenization. Tokenization involves breaking content down into smaller units made up of words, parts of words, punctuation or metadata, Katsur said. These units, called tokens, are used to train LLMs and generate their responses. Publisher content gets tokenized and uniquely assigned to each publisher.

Then, “using the logging and reporting functions that we are proposing,” he explained, publishers can see exactly how the information scraped from their sites is being used.

Tokenization is useful for brands, too, so they can see what is being said about their products and by whom. Many LLMs scrape sites like Reddit, for example, and parrot back what they find as fact – despite the information often being outdated, if not outright incorrect.

As AI continues to make a name for itself in search, a set of guidelines like the LLM Content Ingest API Initiative (looking forward to that new name) is the best way to ensure that query responses are accurate, Katsur said, and that publishers – and with them, the rest of the ad tech ecosystem – continue to thrive.

The big picture

But let’s zoom out.

What actually happens when a bot scrapes a website?

First, it’s important to note that AI isn’t born with limitless knowledge. It has to get that knowledge from somewhere. That’s why AI bots mine websites, which are vast troves of information.

Sometimes, scraping is one-and-done. When a query is for something straightforward, like a chocolate chip cookie recipe, a bot typically won’t need to continue scraping a site for more updated information, Katsur explained, since a cookie recipe doesn’t generally update or evolve. And once an AI model has a good recipe, it can feed it (no pun intended) to the hundreds of thousands of people requesting it.

It’s not guaranteed that after a page is scraped once it never will be scraped again. There is a common misconception “that once an LLM crawls, it stores all the data and never crawls again,” said Katsur. The IAB Tech Lab’s research has shown that crawlers will recrawl content they have already accessed.

Still, scraping the same page a handful of additional times doesn’t scale against the pay-per-visit model that publishers are used to.

With a pay-per-crawl model, a publisher gets paid when a bot pulls information from its site ­– and that’s basically the end of the story. No matter how many of a generative AI search engine’s users benefit from that information down the line, the publisher only gets paid once per scrape.

Pay per query, on the other hand, is more similar to the way publishers currently drive revenue, and is the model favored by the IAB Tech Lab. “Now you’re getting paid per use,” said Katsur, “which is similar to getting paid per visit.”

“Pay per query scales,” he said. “Pay per crawl does not.”

Problem is, even pay per crawl isn’t guaranteed. Plenty of bots are scraping sites without providing any compensation and, technically, that’s allowed – for now.

But that seems to be changing, as more companies develop models that put publisher monetization at the forefront.

Earlier this month, Cloudflare implemented a new pay-per-crawl model that gives publishers full rein over the access they provide to bots. Publishers can give full access, block all scraping or opt into the new pay-per-crawl model, which requires bots to share payment information so they can be charged for each scrape.

That’s something – although, until this sort of model is widely adopted, publisher traffic is still in serious danger.

But, hey, along with the LLM Content Ingest API Initiative, it’s definitely a start.

Must Read

TV Manufacturer Telly Touts Programmatic Home Screen Ads

Telly, the startup that gives away free smart TVs in exchange for data and ad exposure, is making its home screen ads available for brands to buy programmatically – and pushing for industry standards to help attract more spend. 

AI Is Helping L’Oréal Brainstorm Unique Ways To Reach Male Audiences

L’Oréal adopted creative AI platform Springboards to generate creative ideas that led to a collaborative, ongoing ideation process.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.