AI Impact on Referral Traffic: How Email Marketing Can Save Your Revenue

Do you remember when Google and Facebook were reliable sources of traffic for publishers?

An Arc XP report from 2023 indicated that these sources have dried up, predicting that the ability of publishers to find new sources of referral traffic will be even more challenged due to the rise of generative AI-enabled search.

This was an understatement.

Publishers are currently facing up to 40% of traffic loss which can be attributed to the rise of generative AI, led by ChatGPT, Google AI Overview, and AI Snapshot.

Large publishers claim that their biggest challenges are adapting to the new digital marketing setting and social media trends, creating digital products such as video formats for YouTube or TikTok, and keeping up with constantly changing algorithms.

I know what you're thinking: How has user behavior shifted, and what does email marketing have to do with all that?

Let's start from the beginning.

How Are AI Platforms Shifting User Behavior and Stealing Traffic

The simplest answer is — readers have become impatient. Generative AI brought significant change to the way users approach information. They provide instant and concise answers that quickly respond to the user's needs without requiring multiple clicks.

Besides GPT, Google's AI-powered tools can summarize the content within the search engine, keeping the users on the platform. It is only when a subject matter expert is required, that the readers actually aim to do deeper research on their own.

As I mentioned before, Google Snippets play a big role in this. When it comes to a general question that can be answered in a few lines, Google will feature a snippet that gives the answer — without motivating the reader to click on the page.

Industries That Face Traffic Loss Thanks to AI

If you think AI will get a detour around your industry, I'm afraid you'll be wrong. So far, it has affected news publishers, retail and e-commerce sites, travel and hospitality industries, and real estate portals.

Let's see how:

News publishers

If AI summarizes and aggregates the headline and content, news publishers won't get any referral traffic from it. Moreover, Google's AI is fed all the information you publish, and trained to give precise answers.

According to the SEO for Google News Newsletter, a few major publications such as the NY Times and The Guardian have blocked ccbot in their robots.txt on their websites, to stop their content from being used by AI overviews. However, it might be a bit too slow of a reaction, since the LLMs (Large Language Models) have already been trained.

Still, it is a sign that publishers see the harm the AI overview causes to their traffic and ultimately revenue to drop.

Here is how some ranks have changed in just a month during the past year. Forbes, for example, is down by 2 steps.

What is the outcome for publishers?

• Loss of ad revenue: Publishers lose out on monetizable traffic and ad impressions.

• Meanwhile, smaller publishers struggle to gain any visibility at all.

Retail and e-commerce

When you search for products on Google, you are most likely diverted to platforms like Google Shopping and Amazon. This leaves specialized platforms dry of any traffic.

Without the search engine as a part of its lead magnet, a retail website loses a lot more numbers than just traffic.

Travel and hospitality

Bookings are increasingly managed through AI-powered travel tools like Google Travel. This affects any travel website or hospitality business.

Real estate portals

Summarized listings, AI overviews, and AI-driven comparisons can reduce traffic to smaller agencies.

The bottom line, the search generative experience can and will come for all publishers across multiple industries.

Alternatives and the Power of Email Marketing

While AI platforms continue to disrupt traditional traffic channels, publishers and businesses have started looking for alternative strategies to maintain visibility and engagement. Among the top contenders are social media, podcasts, and email marketing.

But not all options are created equal.

Exploring Alternatives: Pros and Cons

Social media platforms, for example, might seem like an obvious choice for reconnecting with audiences. Real-time engagement and viral potential make them appealing. However, the reliance on unpredictable algorithms often leaves publishers in a constant battle for visibility. The same platforms that promise reach can turn it into a struggle with just one tweak in their system.

Podcasts offer a completely different dynamic. They provide a space for in-depth conversations and long-form storytelling, building stronger, more meaningful audience relationships. Yet, their growth demands time, patience, and substantial investment. For smaller teams, this might not be the most practical solution.

This brings us to email marketing, a channel that has remained reliable through every major shift in what GPT would call "digital landscape". Unlike social media, it gives businesses direct access to their audience. Unlike podcasts, it’s relatively cost-effective and quick to deploy. But the real magic of email marketing lies in its ability to foster personal connections and drive measurable results.

Why Email Marketing Is a Robust and Strategic Alternative

One of the biggest advantages of email marketing is control. In the world where algorithms dictate who sees your content, having a direct line to your audience is invaluable.

When you own your email list, you don’t have to worry about a sudden platform update wiping out years of hard work. This stability allows you to focus on building relationships instead of playing catch-up with external platforms.

Engagement is another area where email marketing shines. While social media posts can get lost in a sea of content, email newsletters land directly in your audience’s inboxes. With average open rates ranging from 30% to 40%, newsletters provide a more focused and reliable way to capture attention. Subscribers aren’t just casual readers; they’ve actively chosen to hear from you, making them more likely to engage and convert.

Source: GDMA: https://globaldma.com/international-email-benchmark/

But engagement is just the beginning. Email marketing also empowers businesses to tap into first-party data, a resource that’s becoming increasingly critical as third-party cookies are (hopefully) about to fade away. By tracking subscriber preferences and behavior, you can create segmented campaigns that feel personal and relevant. This level of personalization doesn’t just boost click-through rates — it builds trust.

And let’s not forget revenue. Newsletters can be monetized in diverse ways, from native advertising that blends with content to paid subscriptions that generate recurring income. Some businesses even use affiliate marketing to recommend relevant products and earn commissions, creating an additional revenue stream.

What makes email marketing truly unique, though, is its immunity to algorithm changes. Your content reaches your audience without interference, offering a predictability that other channels simply can’t match. Combined with innovations like AMP-powered interactive emails, which keep users engaged within the inbox, email marketing is not only effective but also future-proof.

Potential Challenges in Email Marketing

Of course, email marketing isn’t without its hurdles. Maintaining open rates can be tricky as inboxes become more crowded. Personalization and segmentation are no longer optional — they’re essential for standing out in a sea of generic messages.

Scaling your email list is another challenge. It’s not just about adding numbers; it’s about maintaining quality. An engaged list requires consistent content that resonates with your audience, which means investing time and creativity into every campaign.

And then there’s the issue of privacy. With regulations like GDPR and CCPA, managing subscriber data requires careful compliance. But these challenges aren’t insurmountable. With the right tools and strategies, email marketing can deliver exceptional results even in a tightly regulated environment.

Future Trends and Outlook

Just as with any other digital channel, email marketing continues to adapt.

Google’s investment in email technology suggests that newsletters aren’t going anywhere anytime soon. Gmail AI features such as Smart Compose, Smart Reply, and Summary Cards have been with us for a while, and they are giving excellent results.

In fact, innovations like AI-powered segmentation and automation tools are making email campaigns smarter and more effective than ever.

For businesses that embrace email-first strategies today, the future looks promising. Building strong subscriber relationships now will pay dividends as competition grows and other traffic channels become less reliable.

The companies that succeed won’t just use email as a tool — they’ll make it a cornerstone of their strategy.

To Wrap Up

Generative AI is rewriting the rules of digital traffic, and traditional referral sources are no longer enough. But in the face of these challenges, email marketing offers something different — stability.

By giving you direct control over your audience, enabling personalization, and opening up diverse monetization options, newsletters are more than just a tool — they’re a lifeline.

As publishers, we’ve all seen how AI platforms keep users locked into their bubble. It’s frustrating, right? But here’s the thing: newsletters don’t just sidestep this problem — they thrive outside of it.

With the right approach, and platforms like Passendo to help with newsletter monetization, email marketing becomes a real game-changer. By blending native ads into newsletters, you can engage your audience without compromising their experience. For me, it’s about creating solutions that feel natural, both for publishers and their readers.

And the results are clear. Case studies prove that email marketing can drive sustainable revenue and engagement, even as AI changes how people consume content. It’s not about fighting AI — it’s about adapting smarter.

What’s Your Take?

Do you think email marketing, paired with smart monetization strategies, can truly replace lost traffic? Or do you see other approaches taking the lead?

I’d love to hear your thoughts — drop them in the comments!👇