How Will AI Overviews and AI Mode Affect Google Ads?

Google is constantly improving how people search online. Over the years, it has added new features like Featured Snippets and innovative tools like BERT and MUM to make search results better. 

Now, Google has introduced AI Overviews and AI Mode, which are significant changes in how search works. But what do these changes mean for Google Ads? And how will they affect things like ad visibility, click-through rates (CTR), and conversions?

Let’s look at how these AI tools might change Google Ads, what businesses should know, and how they can adjust their ad strategies to stay ahead.

What Are AI Overviews and AI Mode?

AI Overviews, previously called the Search Generative Experience (SGE), is a new feature in Google Search that uses generative AI to provide quick summaries directly on the results page. Instead of just displaying a list of website links, Google now shows AI-generated answers that combine information from multiple reliable sources.

AI Mode (or conversational mode) allows users to engage with search in a chat-like format. It remembers the context of previous queries and provides more refined, personalized responses. This shift introduces a zero-click experience, where users might get all their answers without ever clicking through to a website.

The Impact on Google Ads: What Advertisers Must Know

With AI Overviews taking center stage in search results, the placement of Google Ads may be pushed further down the page or become less prominent, especially on mobile. Here are some key changes advertisers may face:

1. Reduced Visibility of Traditional Ads

One of the biggest concerns is that AI Overviews dominate the top fold of the SERP (Search Engine Results Page). This pushes both organic results and paid ads further down, potentially reducing the impressions and visibility of top-performing ad campaigns.

Result: Brands that heavily rely on high-CTR keywords may experience a decline in traffic and need to adjust bidding strategies to maintain visibility.

2. Shift in User Click Behavior

When users get their answers directly from an AI Overview, the need to click through ads or organic results diminishes. This zero-click search behaviour could impact click-through rates (CTR) for paid ads, especially for informational or research-based keywords.

How to Adjust Your Google Ads Strategy for the AI Search?

Despite these challenges, AI Overviews and AI Mode also bring new opportunities. Here’s how businesses can change their ad strategies to keep up:

1. Focus on High-Intent Keywords

Low-intent, informational keywords may no longer drive the same volume of traffic. Instead, target commercial-intent or transactional keywords that AI Overviews are less likely to answer directly.

Example: Instead of targeting “what is dental implant,” focus on “best dental implant clinic near me” or “dental implant cost in Bangalore.”

2. Optimize for Google Shopping and Local Services Ads

AI Overviews tend to emphasize local and product-based intent. Google has indicated that Shopping Ads, Local Services Ads, and specific rich snippets will continue to be featured alongside AI Overviews.

Strategy Tip: Maximize the use of Product Listing Ads (PLAs) and Google My Business optimizations to ensure visibility in AI-assisted results.

3. Revise Ad Copy and Creative Assets

With more competition for fewer clicks, your ad copy and visuals need to stand out. Use emotionally compelling language, highlight unique value propositions, and include action-driven CTAs to improve engagement.

Example:
Instead of saying:
“We offer dental implants. Book now!”

Try this:
“Get your smile back with safe, trusted dental implants. Book a free consultation today!”

This version is still simple but more emotional and action-focused.

Will CPC Increase or Decrease in AI-Driven Search?

This is a pressing question for marketers and businesses alike.

• Short term: Since there will be fewer ad spots showing up, more people will compete for them. This can make the cost per click (CPC) go up, especially for keywords that bring in more customers.
• Long-term: As AI starts to personalize search results more, Google might introduce new types of ads or placements, which could help keep CPC more balanced over time.

Suggested Strategy:

Set up automated bidding strategies (like Target ROAS or Maximize Conversions) and monitor search term reports to ensure you’re still bidding on relevant queries.

How to Measure Ad Performance in the AI Search?

Traditional PPC performance metrics might not tell the whole story any more. With reduced clicks, view-through conversions, brand recall, and offline conversions may become more critical to assess ROI accurately.

Pro Tip: Integrate your Google Ads with GA4 and use conversion modelling to track user actions that may begin with an AI Overview but end with a brand engagement elsewhere.

Opportunities: New Ad Formats and AI-Powered Ads

Google isn’t leaving advertisers in the dark. In response to AI Overviews, Google is testing new AI-powered ad formats, such as:

• Conversational Ads: Ads that integrate directly into AI Mode’s chat interface.
  
• Visual Shopping Ads: More immersive product visuals are shown alongside summaries.
  
• AI-generated creatives: Using Performance Max and Demand Gen campaigns with AI-enhanced assets.
  

How to Prepare:

• Use Performance Max campaigns: These campaigns automatically show your ads in the best places across Google, like Search, Display, YouTube, and Gmail, to get better results.
• Use your customer data: Google’s AI works better when your ads are more relevant. Using your data (like customer lists or website visitors) helps you show more personalized ads to the right people.

Final Thoughts

While the traditional search results page (SERP) is changing with the rise of AI features, the core principles of digital advertising still hold firm, delivering real value, targeting the right user intent, and staying flexible with new ad formats.

Partner with Harvee Designs to future-proof your Google Ads strategy and stay ahead in the evolving world of AI-powered search.