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How AI Engines Are Changing Paid Ads in 2025

The rise of AI Overviews and generative search engines is transforming how people interact with search results—and it’s having a major impact on paid ads. Here’s a user-friendly breakdown of what’s happening, why it matters, and how you can adapt your strategy for success in 2025.

AI Overviews

What Are AI Overviews and Why Do They Matter?

  • AI Overviews are Google’s new feature that uses artificial intelligence to generate summary answers at the very top of the search results page, often before any ads or organic listings appear.
  • Unlike traditional featured snippets (which pull from one source) or knowledge panels (which use structured data), AI Overviews synthesize information from multiple sources in real time.

  • Other platforms, like ChatGPT, Perplexity, and Claude, are also offering similar generative search experiences 1, 2.

Why is this disruptive?

 
  • These AI-generated summaries grab user attention immediately, pushing both paid ads and organic results further down the page—sometimes below the fold, making them less visible and less likely to be clicked 1, 3.

How Paid Ads Are Being Affected

Visibility Drops
  • Ads are now more frequently displayed below AI-generated summaries, reducing their visibility and click-through rates (CTR) 134.

  • In some cases, no ads appear at all alongside AI Overviews, especially for generic, informational queries 3, 4.

Brand Visibility Decline Due to AI Engines
Click Through Rate Declines
Click-Through Rate (CTR) Declines
  • When an AI Overview appears, Google Ads CTR drops from 21.27% to just 9.87%—a decline of more than 50% 4.

  • Organic click-through rates have also dropped by as much as 70% in some cases, as users get their answers directly from the AI summary 2.

Auction Volatility and Cost Pressures
  • With fewer premium ad slots available, competition for visible placements is increasing, driving up cost-per-click (CPC) and making auction outcomes more volatile 15.

  • Marketers are seeing lower Quality Scores over time, as fewer users interact with traditional ad placements 1.

Declining Google Ads Quality Scores

Industry-Specific Impacts

  • Healthcare: AI Overviews appear in nearly 50% of searches, including branded terms, making it especially hard for brands to control their messaging.

  • Finance: 29.2% of generic searches show AI Overviews, but branded searches are less affected.

  • Retail & Travel: Fewer AI Overviews overall, but long-tail queries (longer, more specific searches) are more likely to trigger them, reducing above-the-fold ad visibility.

  • Automotive: AI-generated car comparisons are moving the buyer journey higher up the SERP, impacting both organic and paid listings 4.

2025 Market Intelligence

  • Zero-Click Searches: Over half (58.5%) of U.S. searches now end without a website visit, as users get answers directly from AI Overviews 4.

  • Ad Placement: No ads appear with SGE (Search Generative Experience) snippets in 27% of searches. When ads do appear, they’re often at the bottom of the page 3.

  • Performance Max & AI Integration: Google has announced that advertisers using Performance Max, Shopping, or broad match Search campaigns will soon be eligible to have their ads shown inside AI Overviews and AI Mode, though this is not yet widely available 4.

What’s Changing for Advertisers and Publishers?

Advertisers and Publishers and AI Engines
  • Publishers are losing organic traffic, with some reporting drops of 18–64% as AI Overviews satisfy informational intent directly on the SERP 4.

  • Advertisers face a paradox: while traditional ad visibility is down, AI-powered tools are improving targeting, automation, and conversion quality for those who adapt 5, 6.

  • Ad Value Is Transforming: The focus is shifting from raw clicks to conversion quality, targeting precision, and automation efficiency 5.

How Marketers Can Adapt: Strategic Recommendations

  • Optimize for AI Search: Embrace Generative Engine Optimization (GEO)—create content that’s likely to be summarized by AI Overviews, not just ranked in traditional search results 1.

  • Leverage AI Tools: Use Google’s Performance Max, Smart Bidding, and other AI-driven features to optimize for conversions and maximize visibility where possible 1, 4.

  • Diversify Ad Formats: With traditional search ads facing visibility challenges, invest in shopping ads, video ads, and discovery campaigns to reach users in new ways 5.

  • Focus on High-Intent Keywords: Reallocate budgets to target transactional and lower-funnel queries, where ads are more likely to appear and convert 1, 4.

  • Build Brand Authority: Strong brands are more likely to be featured in AI Overviews, which can boost both organic and paid performance 1.

  • Track SERP Changes: Monitor how your ads are displayed and adapt quickly to new AI-driven layouts and opportunities 1, 4.

  • Use First-Party Data: Feed CRM and customer data into ad platforms to improve targeting and attribution as AI-driven SERPs evolve 4.

Key Takeaways for 2025

  • AI Overviews are here to stay, and they’re fundamentally changing how search works for both users and advertisers.

  • Paid ads are not dead, but their value is shifting. Success now depends on adapting to AI-driven search experiences, leveraging automation, and focusing on conversion quality over raw clicks 5, 6, 4.

  • Strategic agility is essential—marketers who embrace new tools, diversify their tactics, and optimize for both human and AI audiences will win in the new search landscape.

Google Ads and AI

In summary:
AI engines are pushing paid ads out of sight, reducing visibility and CTR, but also opening up new opportunities for those who adapt. The future of paid search in 2025 is not about outbidding the competition, but about out-contexting and outsmarting the algorithms that now shape every user journey 1564.

How AI EngineBoost Helps Marketers Adapt Ad Strategies for the AI Search Era

As AI engines like Google’s AI Overviews, ChatGPT, and Perplexity reshape the digital landscape, marketers must rethink how they achieve visibility and drive results. AI EngineBoost from DigitalBiz offers a comprehensive solution tailored for this new environment, helping brands stay competitive and visible across all major AI-powered platforms 1.

Ai EngineBoost

What Is AI EngineBoost?

 

AI EngineBoost is a multi-layered service designed to maximize your brand’s presence across AI search algorithms. It goes beyond traditional SEO by integrating:

  • SEO (Search Engine Optimization): Ensures your site ranks well for classic search queries.

  • AEO (Answer Engine Optimization): Optimizes your content to be selected as answers by AI-powered engines and voice assistants.

  • GEO (Generative Engine Optimization): Tailors your content for inclusion in AI-generated summaries and overviews, like those now dominating Google’s SERPs.

How AI EngineBoost Works

 

AI EngineBoost automates the creation, publication, and distribution of high-quality, EEAT (Experience, Expertise, Authoritativeness, Trustworthiness) content in multiple formats. Here’s how it supports your AI-era ad strategy:

  • Transforms a single topic into 8+ content formats: Including long-form videos, podcasts, social posts, news articles, blog posts, slideshows, infographics, and Twitter/X threads.

  • Distributes content to 300+ high-authority sites: Your brand is featured on platforms like Fox News, MSN, ABC, Medium, Associated Press, Business Insider, Google News, and Yahoo, giving you broad exposure and authoritative backlinks.

  • Automates short-form and viral content creation: Generates Shorts and Reels for platforms like YouTube, TikTok, and Instagram, reaching the 73% of buyers who prefer short videos.

  • Creates interview-style podcasts and distributes them: No need to record yourself—AI EngineBoost produces and syndicates podcasts to Spotify, Apple Podcasts, and all major platforms.

  • Publishes across social and professional networks: Including LinkedIn, Facebook, and Twitter/X, ensuring your content is everywhere your audience is searching or browsing.

Ai Visibility Pyramid
AI and SEO

Key Benefits for Marketers in the AI Engine Age

 

  • Enhanced Visibility Across AI Platforms: By optimizing for SEO, AEO, and GEO, your brand is positioned to appear in both traditional search results and AI-generated summaries, increasing your chances of being seen as AI engines push ads and organic listings further down the page.

  • Authority Signals AI Can’t Ignore: Frequent publication on high-authority domains boosts your brand’s trustworthiness in the eyes of AI algorithms, making it more likely your content will be selected for AI Overviews and answer boxes1.

  • Content Format Diversity: Reaching users in their preferred formats (video, audio, text, infographics) ensures your message cuts through, no matter how people or AI engines consume content.

  • Automated, Scalable Content Production: AI EngineBoost’s automation means you can maintain a high-volume, high-quality content presence without overwhelming your team—critical as the pace of AI-driven change accelerates.

  • Strategic Adaptation to AI Search Trends: By focusing on answer and generative engine optimization, you’re not just chasing rankings—you’re targeting the new front page of search: AI-generated overviews and summaries.

Integrating AI EngineBoost Into Your Ad Strategy

 

  • Stay Visible as SERPs Evolve: As AI Overviews and zero-click searches reduce ad visibility, EngineBoost helps you maintain a strong presence in the spaces where users now get their answers.

  • Support Paid Campaigns with Organic Authority: Higher brand authority and visibility in AI summaries can improve the effectiveness of your paid ads, especially as Google integrates more AI-driven ad placements.

  • Future-Proof Your Marketing: With AI EngineBoost, you’re not just reacting to today’s search changes—you’re building a foundation for whatever comes next in the AI-powered search landscape.

In summary:


AI EngineBoost  empowers marketers to adapt and thrive as AI engines redefine search and paid ad performance. By combining SEO, AEO, and GEO, and automating high-authority, multi-format content distribution, it ensures your brand remains visible, authoritative, and competitive—no matter how the digital landscape evolves1.

1 Order A Complimentary "Brand Ai Visibility" Report
2 Test AI EngineBoost For Free To See Visibility Gains
3 Run A 2nd Visibility Report and Compare The Two
4 Plan SE0-AEO-GEO Strategy Based On Outcomes

In order to exploit AI EngineBoost efficiently and cost effectively, it is essential to measure how well your brand is known online by AI search engines. This will be the baseline against which future performance is measured. You can discover how visible your brand is to AI search by requesting our complimentary report. After this, take a free trial of AI EngineBoost and note brand visibility gains. Run a second visibility report. Compare the two. You now have enough information to plan your seo-aeo-geo campaigns strategy.