Paid Search Is Being Rewritten by Google AI

Paid Search Is Being Rewritten by Google AI, Adapt or Fall Behind

Google's AI Overviews and AI Mode are reshaping the paid search landscape, leading to major shifts in ad placement, CTRs, and funnel behavior.

By Joel Bondorowsky

This post breaks down what’s changed, where things are headed, and how performance marketers can stay ahead.

Two Waves of Google AI: A Shockingly Fast Rollout

Let’s get one thing clear: these changes aren’t theoretical. They’re here. And they hit the market at breakneck speed.

You can think of Google’s AI evolution in search as coming in two distinct waves:

Wave 1: AI Overviews (formerly SGE)

Announced: May 14, 2024, at Google I/O
Launch: U.S. via Search Labs the same week
Expansion: Over 100 countries by October 2024
User Reach: Projected to hit 1B+ by end of 2024
Upgrade: March 5, 2025, with Gemini 2.0 powering global release

Wave 2: AI Mode (Conversational Search)

Previewed: March 2025, in Search Labs
U.S. General Availability: May 20, 2025
Positioning: “A total reimagining of search” powered by Gemini 2.5
Next: Global rollout expected by end of 2025

This isn’t a slow drip. It’s a tidal wave.

What’s Already Happening: The Current Impact on Paid Search

The most immediate effect has been a steep drop in click-through rates (CTR) on queries where AI Overviews show up. BrightEdge reported a 30% year-over-year CTR decline. Seer Interactive revealed that just 7% of paid queries with AI Overviews drove a 53.6% CTR drop.

Why? Because AI Overviews steal attention. They sit above ads, answer questions directly, and eliminate the need to click. Text ads often fall below the fold. Shopping carousels sometimes survive, but traditional visibility is tanking.

This has been happening since late 2024—and it’s accelerating in 2025.

The Next Phase: Where Paid Search Is Heading

If AI Overviews were a sneak preview, AI Mode is the full feature. And it changes everything.

Now live for all U.S. users in Search and Chrome, AI Mode turns queries into conversations. Traditional SERPs are vanishing. Google is testing ads inside AI Mode—but formats are still emerging.

Here’s what to expect in the months ahead:

Informational intent moves into chat interfaces
Impression share declines on upper-funnel queries
Auction volatility increases as formats shift

By late 2025, most non-commercial queries will be answered by AI first. If you’re not adapting now, you’ll fall behind.

How Smart Advertisers Are Adapting

Here’s what forward-thinking marketers are doing right now:

1. Prioritize High-Intent Queries

Bottom-funnel queries still perform. Shift budget toward purchase-ready traffic that remains unaffected.

2. Own the Overview

Optimize your content to be cited in AI Overviews. Structure, clarity, and authority matter more than ever.

3. Diversify Your Channels

When search visibility declines, meet customers elsewhere—YouTube, display, paid social. Own the research phase outside of search.

4. Lean into Google’s AI Tools

Use Smart Bidding Exploration. Automate creative. Let AI find new patterns—but keep your strategy human.

5. Rethink SEO and PPC as One Funnel

Unified content boosts both paid and organic visibility. Get your teams aligned and stop treating channels as silos.

How We’re Staying Ahead of the Curve

At PPC Designs, we’re not just watching these changes—we’re building strategy around them. Our clients aren’t getting blindsided by shifting ad formats or falling CTRs. We stay ahead, so their performance stays strong.

From tighter funnel targeting to smarter bidding and cross-channel integration, we’re already evolving our approach to meet the demands of AI-first search.

See how our PPC campaign services are helping clients thrive in the AI search era.