The post AI Drives Web Traffic Surge, Threatening Ad-Funded Internet Model appeared on BitcoinEthereumNews.com. Lawrence Jengar Nov 07, 2025 03:59 Agentic search, powered by AI, generates significant web traffic without ad revenue, posing risks to the ad-funded internet model according to Circle’s analysis. Agentic search, leveraging large language model (LLM)-based agents, is reshaping the economic landscape of the internet by generating massive web traffic without corresponding ad revenue, according to Circle. As these AI systems navigate the web, they contribute to a significant increase in web traffic while bypassing traditional monetization models that support content creators and publishers. Impact of Agentic Search on Web Traffic Circle’s research highlights that LLM-based agents can browse hundreds of pages per second without generating monetizable ad impressions or clicks. This shift is challenging the traditional incentive model that has historically driven content sharing, as advertisers and publishers are not compensated for the increased traffic. The study reveals that AI agents generate 10 to 60 times more web traffic than human users for identical queries. For instance, systems like Parallel Ultra can visit up to 146 pages for a single query, a stark contrast to human users who typically find answers with a single click. This phenomenon, termed “search explosion,” underscores the dramatic increase in the number of page visits per query. Economic Implications and Future Challenges The economic implications of this shift are significant. AI systems extract value from the open web without providing compensation to the content creators and publishers who originally generated the data. This trend threatens the sustainability of the ad-funded internet model, as publishers may lose incentives to keep sharing content freely. The rise of powerful agentic search tools, such as Yutori Scouts and Parallel.ai, further exacerbates this issue. These systems can conduct extensive searches, generating detailed reports and consuming substantial web resources without creating revenue… The post AI Drives Web Traffic Surge, Threatening Ad-Funded Internet Model appeared on BitcoinEthereumNews.com. Lawrence Jengar Nov 07, 2025 03:59 Agentic search, powered by AI, generates significant web traffic without ad revenue, posing risks to the ad-funded internet model according to Circle’s analysis. Agentic search, leveraging large language model (LLM)-based agents, is reshaping the economic landscape of the internet by generating massive web traffic without corresponding ad revenue, according to Circle. As these AI systems navigate the web, they contribute to a significant increase in web traffic while bypassing traditional monetization models that support content creators and publishers. Impact of Agentic Search on Web Traffic Circle’s research highlights that LLM-based agents can browse hundreds of pages per second without generating monetizable ad impressions or clicks. This shift is challenging the traditional incentive model that has historically driven content sharing, as advertisers and publishers are not compensated for the increased traffic. The study reveals that AI agents generate 10 to 60 times more web traffic than human users for identical queries. For instance, systems like Parallel Ultra can visit up to 146 pages for a single query, a stark contrast to human users who typically find answers with a single click. This phenomenon, termed “search explosion,” underscores the dramatic increase in the number of page visits per query. Economic Implications and Future Challenges The economic implications of this shift are significant. AI systems extract value from the open web without providing compensation to the content creators and publishers who originally generated the data. This trend threatens the sustainability of the ad-funded internet model, as publishers may lose incentives to keep sharing content freely. The rise of powerful agentic search tools, such as Yutori Scouts and Parallel.ai, further exacerbates this issue. These systems can conduct extensive searches, generating detailed reports and consuming substantial web resources without creating revenue…

AI Drives Web Traffic Surge, Threatening Ad-Funded Internet Model

2025/11/08 10:32


Lawrence Jengar
Nov 07, 2025 03:59

Agentic search, powered by AI, generates significant web traffic without ad revenue, posing risks to the ad-funded internet model according to Circle’s analysis.

Agentic search, leveraging large language model (LLM)-based agents, is reshaping the economic landscape of the internet by generating massive web traffic without corresponding ad revenue, according to Circle. As these AI systems navigate the web, they contribute to a significant increase in web traffic while bypassing traditional monetization models that support content creators and publishers.

Impact of Agentic Search on Web Traffic

Circle’s research highlights that LLM-based agents can browse hundreds of pages per second without generating monetizable ad impressions or clicks. This shift is challenging the traditional incentive model that has historically driven content sharing, as advertisers and publishers are not compensated for the increased traffic.

The study reveals that AI agents generate 10 to 60 times more web traffic than human users for identical queries. For instance, systems like Parallel Ultra can visit up to 146 pages for a single query, a stark contrast to human users who typically find answers with a single click. This phenomenon, termed “search explosion,” underscores the dramatic increase in the number of page visits per query.

Economic Implications and Future Challenges

The economic implications of this shift are significant. AI systems extract value from the open web without providing compensation to the content creators and publishers who originally generated the data. This trend threatens the sustainability of the ad-funded internet model, as publishers may lose incentives to keep sharing content freely.

The rise of powerful agentic search tools, such as Yutori Scouts and Parallel.ai, further exacerbates this issue. These systems can conduct extensive searches, generating detailed reports and consuming substantial web resources without creating revenue in return.

Exploring Solutions for Sustainable Monetization

To address these challenges, Circle suggests exploring new monetization models, such as micropayments for content and APIs. This approach would involve AI agents paying small fees for the content they access, potentially subsidizing human activity and maintaining the economic viability of the open web. Initiatives like the x402 ecosystem and USDC provide potential payment rails for enabling such microtransactions.

As the demand for more accurate and powerful AI-driven searches grows, the internet’s economic model faces a pivotal moment. Implementing sustainable monetization solutions will be crucial to prevent the fragmentation or collapse of the open web.

For further information, the full analysis is available on Circle’s blog.

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Source: https://blockchain.news/news/ai-drives-web-traffic-surge-threatening-ad-funded-internet-model

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