ADVERTISINGMARKETING
Google’s search results page is undergoing one of the biggest transformations in its history. With the rollout and rapid expansion of AI Overviews, the traditional battle for the “#1 position” in paid search is no longer the same.
For years, digital marketers focused on securing top ad rank to guarantee visibility above organic results. But today, that definition of “top spot” is changing fast. Now, advertisers are not just competing with other ads, they are competing with Google’s own AI-generated answers that often appear above everything else.
This shift is reshaping visibility, click-through rates, and overall ROI in paid search campaigns.
AI Overviews Are Reshaping Search Behaviour
AI Overviews are designed to provide instant, summarized answers to user queries directly on the search results page. Instead of clicking multiple links, users often get what they need immediately.
While this improves user experience, it significantly reduces visibility for both organic listings and paid ads.
Recent industry research highlights a key insight: ads now lose above-the-fold visibility nearly 25% of the time due to AI Overviews.
This means that even when advertisers win top ad rank, they may still appear below an AI-generated summary. The result is clear—fewer impressions, reduced clicks, and declining ROI in highly competitive keywords.
The New Battle: Ads vs AI Overviews
The search results page is no longer just a stack of ads and links. It is now a layered ecosystem where AI Overviews often dominate the top space.
Industry-level data shows a clear divide:
- In sectors like Travel, Retail, Financial Services, and Energy, ads still appear above AI Overviews more than 75% of the time.
- In contrast, Healthcare ads appear below AI Overviews nearly 65% of the time, significantly reducing visibility in a high-intent category.
- Gaming shows a 50/50 split, making visibility unpredictable and highly competitive.
This tells us one thing clearly: AI Overviews are not affecting all industries equally. Some verticals are far more exposed than others, especially those involving research-heavy or informational intent.
Mobile vs Desktop: The Hidden Visibility Gap
One of the most overlooked impacts of AI Overviews is the device difference.
On mobile devices, where screen space is limited, AI Overviews take up a much larger portion of the screen. This pushes ads further down, often requiring users to scroll before they even see them.
Industries like automotive and healthcare are particularly affected. Even when ads rank well on desktop, mobile visibility drops significantly due to compressed screen space.
This creates a “double disadvantage” reduced visibility and lower engagement rates on the platform where most searches actually happen.
For marketers, this means mobile-first PPC strategies are no longer optionalthey are essential for survival.
Query Intent Is Changing the Rules of Ad Placement
Another surprising insight is how AI Overviews behave differently based on search intent and query length.
Traditionally, shorter queries were considered more transactional and easier to convert. But now, AI is disrupting that pattern.
- In healthcare, longer queries (8–10 words) almost completely eliminate ad visibility above AI Overviews.
- In gaming, short queries struggle for visibility, but longer queries offer strong ad placement opportunities.
- In automotive and travel, longer informational searches actually perform better for ad positioning than short high-volume keywords.
This completely flips traditional PPC thinking.
Instead of avoiding informational keywords, advertisers now have an opportunity to target mid- to upper-funnel queries where AI Overviews are less dominant and ad placement is stronger.
Why CTR and ROI Are Under Pressure
The biggest impact of AI Overviews is not just visibility, it’s behaviour.
When users see an AI-generated answer, they are less likely to scroll further or click on ads. This naturally reduces CTR even when impressions remain stable.
In other words, advertisers are paying for visibility that is no longer guaranteed to convert into clicks.
This is why many brands are now seeing:
- Lower CTR on top-ranking ads
- Increased cost per click (CPC) pressure
- Reduced conversion efficiency in certain verticals
What Paid Search Marketers Need to Do Now
To stay competitive in this new landscape, PPC strategy needs to evolve quickly. Here are the key action areas:
1. Optimise for device-specific performance
Mobile and desktop behave differently under AI Overviews. Campaigns must be segmented accordingly.
2. Focus on high-opportunity keyword segments
Long-tail, informational, and mid-funnel queries are now key battlegrounds for visibility.
3. Rethink ad copy strategy
Your ad must offer what AI cannot—emotion, urgency, trust, and strong brand value. Highlight:
- Limited-time offers
- Trust signals and reviews
- Clear benefits and differentiation
4. Continuously monitor SERP changes
AI Overviews are still evolving. Visibility patterns can shift quickly, so ongoing analysis is critical.
Final Thoughts
AI Overviews have not removed paid search but they have fundamentally changed how visibility works.
The fight for the top spot is no longer just about bidding higher. It is about understanding where AI appears, how it influences user attention, and how your ads can still win attention in a disrupted SERP.
Brands that adapt early by rethinking keywords, devices, and messaging will continue to win visibility. Those that don’t will slowly lose ground, even at the top of the auction.
In the new era of search, winning the top spot means winning attention before AI does.
