Search Engine Optimisation
AI Overviews
Is AI Overviews Changing the Game for Google Ads? Short answer: yes – but it’s more complex than that! Google’s launch of AI Overviews – a generative AI feature that summarises responses directly in the search results – is one of the most transformative changes in search marketing in years. It impacts not only how users search, but also how they interact with both organic and paid search results.
What is AI Overviews and How Does it Impact Google Ads?
AI Overviews is Google’s response to the growing trend of AI-generated answers in search engines. The feature provides users with a generated, contextual answer at the top of the search result – often removing the need to click through to a website.
For Google Ads specifically, AI Overviews presents both challenges and opportunities. Ads can now appear in three new positions directly related to the AI-generated content:
-
Above the AI Overview box: where traditional top ads used to be
-
Within the AI Overview answer: ads are integrated contextually into the text
-
Below the AI Overview box: near related links and sources
This means a significant shift: ads become more content-driven, context-based and need to be better aligned with user intent – rather than just matching exact keywords.
Potential Drop in Clicks
According to Google, AI Overviews drive ad revenue at the same pace as traditional search – suggesting that advertising remains equally effective. However, AI Overviews capture the user’s attention to such a degree that ads may receive fewer clicks – especially for informational searches at the top of the funnel (ToFu). Ads that previously appeared at the top risk being pushed down – both physically on the page and in the user’s attention. This puts more emphasis on visibility rather than click-throughs.
Higher Value for Transactional Searches
Google has stated that AI Overviews are not always shown for commercial queries where ads are relevant – such as “buy running shoes” or “book a plumber.” This means that ads may play an even more important role in the conversion phase. Tests also show that click-through rates increase significantly (by approx. 3%) when both an ad and the website’s content appear within the AI Overview (Seer Interactive).
New Ad Formats on the Horizon?
Google is already experimenting with new ways to integrate ads into AI-powered contexts – such as sponsored answers or smarter, interactive shopping suggestions.
Over six months ago, Morgan O’Hear reported via YouTube that ads were already being integrated with AI Overviews. These are primarily product-based ads sourced from Shopping and Performance Max campaigns.
Google has now confirmed that ads are being integrated into AI Overviews on desktop in the US, with plans to roll out on mobile later this year. The focus is currently on English-speaking markets, meaning it will likely take time before we see this feature in Sweden.
AI Overviews are launching gradually. Track when it becomes available in your market and for your keywords.
Use Search Console and Google Ads to monitor changes in clicks and impressions over time. Look for patterns and adapt your strategy accordingly.
Shift more budget towards keywords or products with a clear purchase intent. These products may benefit from the prequalification AI Overviews provide.
Explore AI-driven campaign types such as Performance Max and Demand Gen to be part of the “new search results.”
The three AIO placements mean ads must be optimised for different user stages:
- Above: use strong CTAs and conversion-focused copy
- Below: guide users further with informative, helpful content
- Within: match the tone and relevance of the AI answer naturally
Update Your Campaign Types
- Performance Max (PMax) should be a cornerstone in your ad strategy – it uses AI to automatically optimise ad placements across Google’s entire network, increasing chances of visibility in AI Overviews.
- AI Max for Search, a refined feature within PMax, focuses specifically on optimising ads within and around AI Overviews. It’s built on semantic understanding and real-time intent analysis – and boosts visibility.
- Use Demand Gen and Video Action campaigns to build reach across Discovery, YouTube and Gmail – areas where AI now also influences content delivery.
AI Overviews isn’t the end of Google Ads – but it’s the beginning of a new chapter. 75% of Google’s revenue still comes from advertising, and that won’t change. What will change is how and where ads are presented. The SERP (Search Engine Results Page) as we know it is evolving – and marketers need to evolve with it.
Early observations from the US show that Google Ads may now appear much earlier in the customer journey. Ads integrated into AI Overviews may reach users in the exploration phase – directly influencing them from the very beginning.
Sticking to the same setup you’ve always had may result in lost website traffic – which often leads to fewer conversions, purchases or desired on-site actions.
So yes – ads are here to stay. The real question is how Google – and advertisers everywhere – will adapt to this new AI-powered era. At Consid, we’re following the development closely – with great curiosity and even greater interest.
Do you have any questions or do you need help with search engine optimisation at your company? Don’t hesitate to get in touch!