How Google’s AI Overview Is Disrupting Google Ads: What Advertisers Must Know

“Where did my traffic go?”

“Why are my CTRs falling off a cliff?”

“Is Google seriously replacing my ads with AI answers?”

If you’ve recently opened your Google Ads dashboard and felt like something was… off, you’re not alone. Marketers across industries are asking the same questions, and the culprit is clear: Google’s AI Overviews (previously known as SGE, or Search Generative Experience).

Yes — the rumors are true.

No — it’s not just a passing experiment.

And yes — it’s already rewriting the rules of paid search.

Imagine this: a user types a query, and before they even get to the blue links (or your carefully crafted ad), a big, bold AI-generated answer steals the spotlight. Your ad is now buried, your CTR is dropping, and your impression share is shrinking, especially on mobile. 

Sounds familiar? That’s the Google AI Overview effect on ads, and it’s only growing.

But here’s the good news: while this shift may be disruptive, it’s also navigable. 

You just need to understand how the game has changed and how to rethink your PPC strategy accordingly.

In this blog, we’ll unpack:

• The real data behind AI Overview’s impact on Google Ads

• What does it mean for CTR, ad visibility, and PPC performance

• How to respond smartly before your ROAS tanks

• And how to future-proof your campaigns in an era of AI-first search

If you’re in the trenches of performance marketing, search ads, or PPC strategy, this is the read you didn’t know you needed.

Let’s break down the biggest shake-up to paid search since the death of Expanded Text Ads and figure out how to keep winning.

On that note, ladies and gentlemen, we are on!

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What is Google’s AI Overview anyway?

Let’s start with the basics.

Google’s AI Overview is an AI-generated summary that appears at the top of certain search results. 

It synthesizes information from various sources and delivers it in a neatly formatted paragraph, often accompanied by citations and links to relevant sites.

Think of it like this: Instead of 10 blue links or ad slots, the searcher gets a ready-made answer right on the SERP. Fast. Concise. And more often than not… satisfying enough that they don’t need to click anything else.

This is Google’s big swing at keeping users on Google, and it’s part of their long-term plan to make search smarter, more helpful, and less dependent on external clicks.

Previously, this is what the Search process looked like:

Search query → Scan ads → Click website → Browse → Get answer.

Now, with AI Overviews:

Search query → Google summarizes everything → No click needed.

Uh oh. You see where this is going.

Source (Yep! A teeny tiny bit, or a little more than that we dare say!)

AI Overview disrupting Google Ads: The elephant in the SERP

Let’s address the big question: Is the Google AI Overview hurting ads?

Short answer: Yes. But it’s nuanced.

Let’s unpack it.

1. Google AI Overview and ad visibility

The most immediate impact of the AI Overview is ad placement. In many search results where AI Overviews are shown, both paid ads and organic listings are pushed below the fold.

So instead of your ad showing front and center after a user hits “search,” it might now be hidden underneath a giant AI block of content.

This has huge implications for ad visibility, particularly on mobile devices where screen real estate is limited. If your ad isn’t instantly visible, you’re competing for far less attention and impressions drop accordingly.

Result? 

Lower visibility. Fewer eyeballs. Less brand recall.

2. Google AI Overview and Ad CTR

Naturally, if fewer people see your ads, fewer people are going to click on them. But it’s not just about placement.

The Google AI Overview and ad CTR connection is even deeper.

When the AI provides a rich, credible, detailed answer to a user’s query, why would they scroll down and click a link (or an ad) at all?

This leads to a rise in zero-click searches, where the user gets everything they need from the AI Overview and clicks nothing. That includes your ad.

This phenomenon is disrupting click-through rates across multiple verticals, especially for informational and TOFU (top-of-funnel) queries.

3. Google AI Overview and PPC performance

With lower CTRs and reduced impressions, the next domino falls: PPC performance takes a hit.

Even if your cost per click (CPC) remains stable, your overall traffic, lead volume, and even conversion data could drop. Particularly in industries like health, finance, or e-commerce, where search is a key discovery and decision-making channel, this has been concerning.

In other words, the impact of Google AI Overview on paid search is a real threat to PPC marketers who haven’t yet recalibrated their strategies.

Google AI Search changes and Google Ads: What’s really going on?

Let’s zoom out for a moment.

This isn’t just about ads being pushed down the page or losing a few impressions. What we’re witnessing is a fundamental shift in how people use Google, and that’s what makes this so important for advertisers.

Think back to how search used to work.

Someone types a question into Google, say, “how to start a blog.” They scroll, scan titles, click a few blue links (maybe even an ad), compare options, read reviews, and eventually land on your site. That exploration process gave advertisers multiple chances to show up and influence a decision.

Now? That entire journey might be replaced by one single AI-generated paragraph.

Google’s AI Overview (formerly SGE) is like a supercharged concierge that reads everything online, summarizes the key points, and delivers them instantly, right at the top of the results page. The user gets their answer… without ever clicking anything.

And here’s the kicker: that summary is based on what Google’s AI thinks is valuable, not what your landing page says.

That’s where things get tricky.

What does this mean for advertisers?

Two big challenges pop up immediately:

1. Fewer chances for users to “discover” you

Let’s say you’re a new skincare brand trying to build awareness. In the old search model, a curious user might have scrolled past your ad, seen your catchy headline, and clicked out of curiosity. That opportunity for discovery was huge.

With AI answers taking center stage now, users don’t scroll as much. They don’t click as much. And if your site isn’t cited in the AI summary? You’re invisible.

2. You’re no longer in control of your story

Before, you had full control over your messaging through ad copy and landing pages. Now, Google’s AI decides what to say about your topic, pulling snippets from across the web. You could be left out, misrepresented, or boiled down to a single sentence that doesn’t do your brand justice.

Imagine spending months perfecting a landing page, only for Google’s AI to grab a summary from your competitor’s blog instead.

So, what’s the bottom line?

This isn’t just a visual change, it’s a behavioral one. People are searching differently and getting their answers faster, often without interacting with any paid or organic listings.

For advertisers, that means one thing:

It’s time to rethink how you show up in search.

What do the early numbers say?

Let’s be honest, the data confirms what many PPC advertisers are already feeling in their dashboards.

~ CTR is dropping: A recent Advanced Web Ranking study shows that click-through rates for informational queries dropped by over 7 percentage points when AI Overviews appeared, especially on desktop results.

~ Mobile ad visibility is shrinking: While not quantified in a single public stat, multiple industry experts are reporting noticeable dips in top ad impression share on mobile, often 20% or more.

~ Zero-click searches are up: According to Search Engine Journal, 58.5% of Google searches in 2024 ended without a single click, meaning users are finding what they need directly in AI-generated answers.

So… how do you stay in the game?

Let’s be honest, seeing your ad traffic dip while Google’s AI writes essays at the top of the SERP is frustrating. You didn’t spend years optimizing your campaigns just to get out-ranked by a chatbot.

But here’s the good news: this isn’t the end of paid search, it’s just the start of a new playbook.

Let’s talk strategy, not in theory, but in the real, roll-up-your-sleeves kind of way.

1. Prioritize bottom-funnel keywords

Not all searches are created equal, especially now.

AI Overviews usually dominate informational searches like “how to choose a CRM” or “benefits of drinking green tea.”

 But when people are ready to take action like “buy CRM software” or “green tea delivery near me” guess what? Ads are still king.

The move: Shift your budget toward high-intent, ready-to-buy queries. Think branded terms, local searches, product categories, and comparison-based keywords. That’s where conversions live.

2. Own your brand on the SERP

Even if users don’t click your ad the first time (thanks, AI), they might remember your name and come back later this is where branded search really shines.

Your brand becomes the shortcut back to you.

The move: Run branded campaigns with strong copy, sitelinks, callouts, you know the works. Make your search presence feel like your homepage. If someone’s Googling your name, you better be the first thing they see.

3. Use Performance Max intentionally

Let’s face it: Google’s pushing PMax hard, and while it’s not perfect, it can actually help expand your reach beyond the shrinking real estate on the SERP.

PMax gets you into YouTube, Gmail, Discover, and more places where AI Overviews aren’t stealing the spotlight (yet).

The move: Don’t treat PMax like a black box. Structure campaigns around clear goals, leads vs. sales vs. awareness. Build engaging creatives that hook people visually, not just copy that blends into the noise.

4. Watch your “Top vs. Absolute Top” metrics

Want to know how much AI Overviews are hurting your ad visibility? Your own dashboard can tell you.

Check your Top Impression Share and Absolute Top Impression Share, they’ll show you how often your ads are appearing above the fold vs. getting buried below AI content.

The move: If your top impression share is tanking, don’t panic. Test bid adjustments, device targeting, or even break out mobile-only campaigns. Data is your flashlight in the dark.

5. Optimize for AI citations (Yes, even in paid search)

Here’s the plot twist: just because someone doesn’t click your ad, doesn’t mean they don’t see your content, especially if your landing page gets cited in an AI Overview.

Yep, AI Overviews pull from web content. That means a solid landing page can still earn you brand awareness without a single paid click.

The move: Make sure your pages are clean, well-structured, use schema, and answer real questions in natural language. You’re not just writing for humans anymore, you’re writing for the AI, too.

To surmise, the Google AI Overview effect on ads is real, but so is your ability to adapt.

This isn’t the time to hit pause. It’s the time to double down, evolve your strategy, and find new ways to connect with the right people at the right time.

Paid search isn’t dead, it’s just growing up. And if you play it right, you’ll grow with it.

TL;DR ~ But seriously, read the whole thing!

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Alright, here’s the quick-and-dirty if you’re in a rush:

~ AI Overviews are hogging the spotlight, and your ads are getting pushed down.

~ Click-throughs? Slipping. Especially on those top-of-funnel “just browsing” searches.

~ Performance Max, branded search, and bottom-funnel targeting, that’s your survival kit.

~ Oh, and heads up: Google’s already experimenting with ads inside those AI blurbs. Wild times.

Bottom line? 

Search is evolving fast. Either evolve with it… or watch your traffic quietly disappear into the AI void.

The road ahead

If you love staying abreast with the latest paid search trends, then this is one blog, you wouldn’t wanna miss ~ From Scroll to Sold: How Livestream Shopping Is Reshaping the Way We Buy!