How are AI Overviews changing online ads?

Luke Meredith

Google’s new AI Overviews are shaking up both the way people search online and how companies advertise.

These AI (artificial intelligence)-generated answers now appear at the top of many search results, giving users quick summaries from different websites. But this change is causing problems for advertisers who rely on paid search ads to get noticed.

A recent study by Adthena looked at over 21 million search results across five industries: retail, travel, finance, healthcare and automotive. The study found that click-through rates on paid ads could drop by 8 to 12 percentage points. That’s a big deal, because it means fewer people are clicking on ads, which could hurt the businesses that depend on them.

At first, AI Overviews mostly showed up on long, detailed questions. Now, they’re appearing on short, popular searches too; the kind that usually lead to purchases. This means AI Overviews are moving into the same space as paid ads, making it harder for brands to stand out.

Some industries are being affected more than others. Finance and healthcare are seeing the biggest changes, with AI Overviews showing up on many types of searches. Retail is also seeing growth, especially on longer searches like “best budget laptop for students.” Travel and automotive are changing more slowly, but they’re still feeling the impact.

The study also showed that AI Overviews are growing fast. In just four months, their presence increased in every industry. Finance had the biggest jump, followed by healthcare and travel. Retail and automotive grew more slowly, but the trend is clear: AI Overviews are becoming more common.

Some brands are gaining visibility thanks to AI Overviews – especially those with helpful, informative content. These brands are showing up more often in the AI summaries, while others are losing ground. For example, major banks and health websites are doing well, while smaller companies may struggle to keep up.

Adthena has created a special dashboard to help advertisers track how AI Overviews are affecting their search results. This tool shows where AI Overviews appear and how they impact ad performance. It helps companies adjust their strategies and stay competitive.

Overall, Google’s AI Overviews are changing the way search works. Ads are being pushed lower on the page, and companies need to find new ways to stay visible. As AI SEO (search engine optimisation) services continue to grow, businesses must adapt quickly to keep up with the changing digital landscape.

At Engage Web, we have you covered for everything relating to SEO. Speak to us now and let us help your website’s presence.

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Luke Meredith

Content Editor at Engage Web

At home in both the digital sector and the world of communications, Luke thrives on deadlines and has held roles in healthcare, retail and digital marketing, gaining a sound knowledge of a wide range of sectors. He’s a massive swot as well, holding a first-class degree in BA Communication and Media, and now uses his writing skills and keen editorial eye in his role as Content Editor here. Luke helps to oversee our clients’ content requirements, while also looking after a pool of freelance writers across three continents.