Are Google AI Overviews Torching Paid Search?

20250416 -- Are Google AI Overviews Torching Paid Search -- Kelly S.

If you’ve been in the paid search game since Ask Jeeves, or when people would ask, “what is PPC?”, you know that Google loves to keep digital marketers on our toes. Just when we think we’ve discovered the Holy Grail of strategies, they change the rules again—and again. This time, it’s AI overviews (AIOs), Google’s latest curveball that’s shifting search behavior faster than Extensions became Assets!

AIOs are giving users instant answers while pushing both organic listings and paid ads further down the search engine results page (SERP). What does this mean for advertisers? The short answer is: headaches. The long answer is to keep reading because it depends on many variables.

What the Heck Are Google AI Overviews?

Google’s AI Overviews are AI-generated summaries that pop up at the top of search results, grabbing info from multiple sources across the internet and compiling them into a neat “overview” at the top of the SERP so users don’t have to click through to actual websites. Think CliffsNotes for the internet. They include some great information, but be careful, they may not always tell the whole, factual story.

This “simplification” of search via AIOs is great for users looking to find answers to their questions quickly—but for advertisers, it’s less than stellar. These AI-driven responses are already showing up in 20%+ of searches, slashing click-through rates (CTR) and making paid search life very “meh.” Imagine showing up to a game only to realize the rules changed overnight, and this time, Google won’t even let you play—yeah, it’s kind of like that.

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Who’s Getting Hit the Hardest?

Not all industries are feeling the same level of disruption. According to research from Rich Sanger and Authoritas, as well as seoClarity, these industries are taking the biggest hits:

Publishers & Blogs

AIOs love answering questions, which means blogs, travel sites, and recipe sites are hemorrhaging traffic. I recently asked Google to give me ideas for a Peanuts-themed birthday party, and instead of showing me a few blogs and sites with fun printables, AIOs gave me a complete itinerary for the party. I was shown a full outline with decoration ideas, fun activities, a Peanuts-themed menu that included snacks and drinks, and where to find supplies for each. AIOs even suggested locations to throw the party that were specific to the area where I live. Sorry, popular craft bloggers with independent sites that depend on ad clicks for revenue, I’ve got everything I need.

Healthcare & Medical (Paging Dr. AI…Emergency, Emergency)

Have you been Googling your symptoms? Of course you have, we all do. AIOs now give you instant answers, so there go the clicks to WebMD and the advertisers who rely on them. Your doom-scrolling into the depths of a health-crisis rabbit hole just got a little less intense.

Finance & Legal (Good Luck Standing Out)

AIOs quickly answer tax, loan, and legal questions, making the paid ads below easy to skip. Users get what they need without clicking, which is bad news if you rely on search ads to gain clients.

eCommerce & Retail (Not Doomed…Yet)

Product searches like “buy a dog leash” are still relatively safe, but Google is currently testing AI-powered shopping results. Basically, enjoy the calm before the storm.

Home Improvement & DIY (Step-By-Step with AI)

Search “fix a leaky faucet,” and Google might show you a step-by-step guide instead of an ad for a professional plumber. The next thing you know, you’re flooding your kitchen, but you’re still convinced you’re on your way to unlocking a new life skill.

How AI Overviews Impact Paid Search
  • Lower CTRs: Users get answers without clicking (called zero-click searches). While there is value to zero-click searches in search engine optimization (SEO), not so much for PPC.
  • Higher costs-per-click (CPCs): More competition for the few remaining clicks turns search auctions into an old school eBay bidding war.
  • Keyword Strategy Shift: AI Overviews favor context over keywords, making long-tail queries and human-written content more valuable than ever.
  • Branded & Awareness Campaigns: AI pulls from “authoritative sources,” so brand recognition is now your VIP pass.
  • New Ad Formats: Google is already testing sponsored results inside AI Overviews— because, let’s be honest, where there’s a will, there’s a way. Want to have a piece of that cake? If you are in the US and have Shopping or Performance Max campaigns, you’re automatically opted in on mobile devices. If you want to opt out or review data on your ads’ performance, the jury is still out on that. 
Five Ways to Survive & Possibly Even Thrive
1. Find the Gaps AI Can’t Fill

Long-tail, intent-driven queries still bring in clicks. I often find great long-tail keyword variations of my keywords when I review search terms. I’d suggest starting there, since you will also have some data to analyze.

2. Lean Into Google’s Own AI Tools

Embrace the chaos and let Google’s AI work for you. Being able to adapt in these fast-changing times is key in this industry. Try your hand at Performance Max campaigns, Smart Bidding, or AI ad creation tools. 

3. Build a Stronger Brand Presence

Since AIOs favor authority, become the authority. Focus on branding, thought leadership, and content that establishes you as the go-to expert in your field. Google has always favored experience, expertise, authoritativeness, and trustworthiness (E-E-A-T) in SEO, and that methodology has now crossed over to PPC.

4. Go Beyond Search Ads

With organic and paid search shifting, it’s advisable to allocate some of your digital marketing budget to Display, Video, Demand Gen, or Shopping campaigns. Diversifying your marketing portfolio during this uncertain time is crucial to long-term success. Multiple eggs in many different baskets, just in case one basket falls.

5. Test, Adapt, Repeat

Google is still fine-tuning AIOs, so keep an eye on performance metrics and adjust as needed. Think of it like having a spare tire in your trunk. It’s always good to be prepared just in case.

The Bottom Line

AI overviews are flipping search marketing on its head, but it’s not the first time Google has made life harder for advertisers—looking at you, exact match “close variants.” Stay sharp, test often, and remember that survival in paid search is about adaptation and evolution.

And hey, at least we’re not explaining what PPC stands for anymore, right?

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