Google's AI Overviews are live. Ads are running inside them. And the data is in: CTR is cratering across the board — organic down 61%, paid down 68% on queries where AI Overviews appear.
This isn't speculation anymore. We have nine months of data. Here's what PPC marketers need to know.
How It Works
AI Overviews are Google's AI-generated summaries that appear at the top of search results. Instead of scanning ten blue links, users get a synthesized answer with cited sources embedded in the response.
Ads can appear in three positions:
- •Above the AI Overview
- •Below the AI Overview
- •Within the AI Overview itself (US only, desktop and mobile)
The key difference from traditional search: Google now considers both the user query AND the content of the AI Overview when deciding which ads to show.
Google's example: Someone searches "why is my pool green and how do I clean it." The AI Overview discusses algae and chlorine. Google detects commercial intent in the journey and serves ads for pool vacuum cleaners — even though the query itself wasn't commercial.
The Eligibility Requirements
To show ads in AI Overviews, you need:
- •Search, Shopping, Performance Max, or App campaigns (existing campaigns are automatically eligible)
- •Broad Match or AI Max for Search to appear within AI Mode responses
- •Ads in AI Overviews available in 200+ markets (above/below placement)
- •Ads within AI Overviews currently limited to: US, UK, Australia, Canada, India, Indonesia, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, Philippines, Singapore
There's no separate opt-in. Your existing campaigns are already eligible. The question is whether they're optimized to actually win these placements.
The CTR Carnage
Seer Interactive analyzed 3,119 queries across 42 organizations (25.1M organic impressions, 1.1M paid impressions) from June 2024 to September 2025. The findings:
| Scenario | Organic CTR Change | Paid CTR Change |
|---|---|---|
| AI Overview present, not cited | -65% | -78% |
| AI Overview present, cited | -49% | -54% |
| No AI Overview present | -46% | -20% |
Even when AI Overviews don't appear, CTRs are declining. Users are shifting behavior — whether to ChatGPT, Perplexity, or just getting answers directly from Google.
The one bright spot: Being cited in the AI Overview matters enormously. Brands cited in AI Overviews see 35% higher organic CTR and 91% higher paid CTR compared to those that aren't.
AI Overviews Expansion and Pullback
Semrush tracked AI Overview presence across 10 million keywords through 2025:
- •January 2025: AI Overviews appeared on ~10% of queries
- •July 2025: Peaked at nearly 25% of queries
- •November 2025: Pulled back to ~16% of queries
Google is testing aggressively, then retreating based on data. The volatility continues.
What's changed:
- •Informational queries no longer dominate. Early AI Overviews were almost entirely informational. Now they're expanding into commercial and transactional territory.
- •Navigational queries rising. Brand searches with AI Overviews grew from under 1% to over 10%.
- •Ads alongside AI Overviews surged. From 3% of AI Overview SERPs in January to 40% by November.
AI Mode: The Next Evolution
AI Mode is Google's conversational search experience — think AI Overviews on steroids. Users can ask complex, multi-turn questions and get interactive responses.
Google is testing ads in AI Mode in the US. Key details:
- •Ads appear below and integrated into AI Mode responses
- •Must use Broad Match, AI Max for Search, or Performance Max to be eligible
- •No separate targeting or reporting for AI Mode placements
- •Early data: Advertisers using AI Max see 27% more conversions at similar CPA vs. campaigns using mostly exact/phrase match
The strategic implication: Google is pushing everyone toward automated, AI-powered campaigns. Manual keyword control is becoming less relevant.
What You Can Actually Control
Campaign structure:
- •Use Broad Match or AI Max for Search (required for AI Mode eligibility)
- •Run Performance Max alongside Search campaigns
- •Ensure Shopping campaigns have complete, accurate product data
Creative quality:
- •Supply diverse, high-quality images and videos
- •Write headlines and descriptions that answer follow-up questions
- •Use Asset Studio's AI tools to scale variations
- •Refresh creative every 4-6 weeks
Data hygiene:
- •Clean conversion tracking is non-negotiable
- •First-party data feeds AI optimization
- •Structured data helps Google understand your content
Bidding:
- •Smart Bidding performs better with cleaner signals
- •Test Smart Bidding Exploration for incremental reach
- •Don't abandon CPA/ROAS targets — AI needs guardrails
The Measurement Problem
Here's the uncomfortable truth: you can't see how your ads perform specifically in AI Overviews or AI Mode. Google doesn't break this out in reporting.
What you can track:
- •Overall Search campaign performance trends
- •Impression-to-conversion patterns
- •Assisted conversions (AI touchpoints in the journey)
What you can't track:
- •Clicks specifically from AI Overview placements
- •AI Mode impression share
- •Which queries triggered AI Overview ads
What To Do Now
Accept the new reality. AI Overviews aren't going away. Google processed 5 trillion searches in 2024, and AI is now integrated into billions of those queries. Optimize for it or lose ground.
Get cited. The data is clear: citation in AI Overviews dramatically improves both organic and paid performance. This means creating authoritative, comprehensive content that Google's AI wants to reference.
Embrace automation (selectively). You need Broad Match or PMax to show in AI Mode. But don't abandon all control. Use negative keywords aggressively. Segment campaigns by intent. Monitor search terms reports weekly.
Invest in creative. In an automated world, creative quality is one of your few remaining levers. Better assets = better AI optimization.
Track the macro trends. Since you can't see AI placement performance directly, watch your overall Search metrics closely. If CTR is dropping while impressions rise, AI Overviews are likely the cause.
Test AI Max for Search. Google reports 27% conversion lift. That's worth validating in your account, even if you're skeptical of their data.
Bottom Line: Google AI Overviews represent the biggest change to Search advertising since the mobile shift. The PPC marketers who adapt now will have a significant advantage when (not if) AI-powered search becomes the default experience. The ones who wait will spend 2026 playing catch-up.
