AI Overviews and Google Ads: How SGE Changes PPC Strategy

Google's AI Overviews have fundamentally changed the search results page. For many queries, an AI-generated answer now appears at the top—above the ads you're paying for.

This shift affects every advertiser, but not equally. Understanding which queries trigger AI Overviews, and how user behaviour has changed, determines whether your campaigns adapt or decline.

What AI Overviews Mean for Advertisers

AI Overviews (formerly called Search Generative Experience or SGE) provide synthesised answers to queries directly in the search results. Users get information without clicking through to any website—including your ads.

For informational queries, this changes everything. Someone searching "how to choose an accountant" may read Google's AI summary and never scroll to your ad. The information they sought appeared instantly.

For commercial and transactional queries, the impact is more nuanced. AI Overviews appear less frequently for "buy now" searches. When they do appear, they often include product comparisons or local options that can work in your favour.

The net effect varies by industry and query type. Some advertisers have seen click-through rates drop significantly on informational terms. Others have seen minimal impact because their core queries remain transactional.

Which Queries Trigger AI Overviews

AI Overviews appear most frequently for:

Informational queries dominate AI Overview appearances. "What is," "how to," and "why does" queries almost always trigger AI-generated answers. If your advertising strategy depends on capturing information seekers, your visibility has decreased.

Comparison queries increasingly trigger AI Overviews that synthesise reviews and features. "Best accounting software for small business" generates an AI summary before showing any ads.

Local informational queries show AI Overviews alongside local packs. "Dentist near me" may show AI context about what to look for in a dentist, followed by the map pack, then ads.

Commercial transactional queries trigger AI Overviews less frequently. "Buy Nike Air Max" and "accountant Perth prices" typically show ads prominently. Google protects their revenue on high-intent searches.

How Click-Through Rates Have Changed

The data from 2025-2026 shows clear patterns.

Informational keyword CTRs have declined 20-40% for many advertisers. Users find their answer in the AI Overview and don't need to click further. If you were bidding on "what is quality score" to attract learners, those clicks now happen less often.

Branded searches remain relatively stable. When users search for your specific business name, they want your website—not an AI summary about you. Brand campaigns continue performing near historical norms.

High-intent commercial searches show minimal decline. Someone searching "emergency plumber Sydney now" isn't reading AI summaries. They're clicking the first number they can call. Urgent, transactional queries retain their value.

Long-tail queries have mixed results. Some benefit from AI Overviews that don't quite answer the specific question, pushing users to click for details. Others suffer as AI Overviews become better at handling nuanced queries.

Adapting Your Keyword Strategy

The smart response isn't abandoning informational keywords—it's rebalancing your portfolio.

Prioritise commercial intent. Terms with buyer signals deserve larger budget allocation. "Best," "buy," "hire," "near me," and "prices" indicate readiness to act. These queries trigger AI Overviews less often and maintain stronger CTRs.

Qualify with specificity. Broad informational terms underperform, but specific informational terms can still work. "What accountant specialises in medical practices Melbourne" is specific enough that AI Overviews may not fully satisfy the searcher.

Focus on bottom-funnel terms. The research phase increasingly happens in AI Overviews. Your ad budget delivers better returns when capturing people who've finished researching and are ready to act.

Test upper-funnel reduction. If you're bidding on purely informational terms to build awareness, test reducing that spend. Measure whether bottom-funnel performance suffers. Often, it doesn't—those users would have found you through organic or AI Overview citations anyway.

The Organic-Paid Synergy

AI Overviews create a new connection between organic content and paid advertising.

Sources cited in AI Overviews gain visibility even without clicks. If your website content appears in an AI Overview, users see your brand name while learning about the topic. When they later search with commercial intent, your paid ads benefit from that prior exposure.

This means content that AI recommends now influences PPC performance. Creating comprehensive, factual content about your industry can earn AI Overview citations, building awareness that your paid campaigns later convert.

The practical implication: SEO and PPC strategy must coordinate more closely than before. The AI Overview you earn through organic content feeds the brand recognition your paid ads leverage.

What This Means for Campaign Structure

Several structural adjustments help campaigns adapt.

Segment by intent more granularly. Create separate campaigns or ad groups for informational versus commercial queries. Apply different bid strategies and budgets based on expected AI Overview impact.

Increase brand campaign investment. As AI Overviews capture top-funnel attention, branded searches become more valuable. Ensure you're capturing the demand that AI Overviews help create.

Test reduced budgets on affected queries. Rather than abandoning informational keywords entirely, reduce their budgets and monitor whether conversions maintain. Sometimes the lower CTR still delivers acceptable CPA.

Watch competitor behaviour. As some advertisers reduce informational bidding, costs may decrease. Reduced competition can restore profitability for patient advertisers who maintain presence.

Looking Forward

AI Overviews will become more prevalent, not less. Google is committed to this format, and users have embraced it. The search results page of 2028 will feature AI even more prominently.

For advertisers, this means continued evolution. The winners will be those who:

1. Focus budgets where commercial intent protects ad visibility
2. Build organic content that earns AI Overview citations
3. Create seamless paths from awareness to conversion
4. Monitor performance granularly and adapt quickly

The fundamentals of advertising remain unchanged: reach the right people with the right message at the right time. AI Overviews simply change which searches qualify as "the right time."

If your campaigns feel less effective than they once did, AI Overviews likely contribute. The solution isn't fighting the change—it's adapting your strategy to thrive within it.

Need help adapting your Google Ads strategy for AI Overviews? Our Google Ads management includes ongoing optimisation that accounts for these platform changes.

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