By Shane O’Neill, CMO
As AI-driven overviews become a bigger part of Google’s search experience, advertisers need to be ready for some serious changes in how paid search ads perform. Google’s Search Generative Experience (SGE), for example, is now giving users detailed answers directly in the search results, pulling information from multiple sources. While this is great for users looking for quick, in-depth answers, it’s already starting to shake up the world of Google Ads.
Here’s what you need to know about how AI overviews are impacting paid search:
- Lower Click-Through Rates (CTR): When AI answers questions directly in the search results, there’s less incentive for users to click on ads. If a user gets the info they need without having to visit a website, ads naturally see fewer clicks. This means your ad traffic could take a hit, and with fewer clicks, cost-per-click (CPC) might rise as competition for the remaining clicks heats up.
- Ad Relevance is More Important Than Ever: As AI overviews dominate search results, the relevance and quality of your ads need to be top-notch. Google’s always emphasized quality scores, but now, ads that offer unique value—things AI can’t provide, like exclusive discounts, offers, or human interaction—will be critical to stand out. If you’re not directly solving the user’s problem in a way that the AI summary can’t, you’re going to struggle.
- Fewer Opportunities for Informational Queries: AI is now tackling broad, informational searches head-on, making it harder for advertisers to capture users in the early stages of their buying journey. If you’ve been relying on these types of queries, you’ll need to pivot your focus toward more transactional, high-intent searches where users are closer to making a purchase or need something AI can’t deliver.
- Ad Positioning Will Shift: AI-generated summaries take up prime real estate on the search results page, which can push paid ads further down. This drop in visibility means your ads might not get the attention they once did. To compensate, you might need to bid more aggressively or rethink your strategy to maintain top-of-page placements.
- Shifts to Niche Keyword Strategies: Broad, general searches are increasingly being handled by AI, so you’ll need to focus on long-tail keywords that are more specific and targeted. These queries might not be fully addressed by the AI, leaving room for your ads to capture those users further down the funnel.
- Budget and ROI Considerations: With fewer clicks available and higher competition for them, ad budgets and ROI expectations need to be adjusted. You may need to get more strategic about how much you’re willing to pay for clicks, and find ways to drive conversions without spending more.
