The moment when a click no longer means anything.
Try searching: “best Bluetooth speaker under €100.” The first thing you’ll see isn’t an ad or an organic result. It’s an AI-generated summary. And often, that’s all the user needs. No click. No visit to your website.
This isn’t an experiment. It’s the new search standard and it’s fundamentally changing paid campaign performance.
CTR Is Dropping. And It’s Not a Creative Problem.
According to an analysis published by Search Engine Land, queries that triggered an AI Overview saw a significant drop in click-through rate across the entire SERP.
Paid CTR decreased by 68% (from approximately 19.7% to 6.34%), and organic CTR for the same queries fell by 61%. Interestingly, the decline was also visible in searches without AI Overview – organic CTR was 41% lower than the historical average. This suggests a broader shift in user behavior, not just an isolated effect of the AI box itself.
If your CTR is falling, it may not be weaker creatives or stronger competition. When Google answers the query directly on the SERP, some users simply have no reason to click.
25% of Ads Are Losing Top Position
CTR is just the consequence. The real issue is visibility.
on average, 25% of paid ads do not appear above the AI Overview
- in Healthcare, as many as 64.6% of ads appear below the AI Overview
Gaming shows an approximately 50/50 split above and below
Travel, Retail, and Financial Services remain above the AI Overview in more than 75% of cases
Source: Adthena
This means roughly one in four ads is losing above-the-fold visibility – regardless of bid or Quality Score.
Mobile Is Even Tougher Than Desktop
On desktop, the SERP is longer. Even if an ad appears below the AI Overview, it often remains partially visible.
On mobile, however, the AI Overview frequently takes up the entire first screen. Ads below it only appear after scrolling.
The result is lower real visibility, a sharper drop in CTR, and increased pressure on the efficiency of every single click. If your ad falls below the AI Overview — especially on mobile – its chance of capturing attention drops dramatically.
Source: Adthena
It’s also important to note that mobile is where AI Overviews push ads down most aggressively, and where position loss is most noticeable.
If you manage an e-commerce store, your mobile strategy can no longer be just a modified version of your desktop campaigns.
AI Overviews Are Expanding to Commercial and Branded Queries
Initially, AI Overviews appeared mainly for informational searches. That’s changing.
They are no longer limited to long informational queries – they are gradually expanding into shorter and more commercial searches that were traditionally dominated by paid campaigns.
Approximately 18–20% of branded queries across categories can now trigger an AI Overview. This means even searches that include your brand name no longer guarantee full control over the top of the SERP.
AI Overviews Appear on Around a Quarter of Searches
Overall SERP analyses suggest AI Overviews now appear in approximately 25–30% of Google queries, with significant growth between 2024 and 2025. This is no longer a marginal feature. It’s a structural change in search.
The Economics of PPC Are Changing
The mechanism is simple:
- AI Overview provides the answer.
- The user gets the information without visiting a website.
- The click never happens.
The result:
- Fewer clicks at the same impression volume.
- In some segments, higher CPC pressure.
- Potential ROAS decline if strategy doesn’t adapt.
Adthena’s cross-industry analysis notes that aggregated data may appear stable, but once segmented by industry, device, and query type, significant differences in CTR and CPC become visible.
The Paradox: Longer Queries May Be an Opportunity
An interesting insight from the data:
In industries such as Automotive and Travel, ads triggered by longer queries (4+ words) are more likely to appear above the AI Overview than short head terms.
This challenges traditional PPC logic:
Short, highly competitive keywords may no longer be the safest bet.
Mid-funnel and informational queries may offer better relative visibility.
Ads Inside AI Overviews? For Now, Minimal.
According to Adthena, ads appear directly inside AI Overviews in only about 0.05% of cases (roughly 1 in 2,000). However, this is unlikely to remain the final state. Monetizing AI real estate is a logical next step.
What You Should Do Today
If you manage an e-commerce store or agency, the recommended steps are pragmatic:
- Segment performance by device.
- Identify which keywords trigger AI Overviews.
- Reevaluate the role of long-tail and mid-funnel queries.
- Strengthen creatives with strong transactional arguments (delivery, warranty, availability).
- Monitor not just CTR, but conversion quality and actual visibility above the AI Overview.
Conclusion
AI Overviews are not just reshuffling rankings. They are changing the need to click.
When answers move directly onto the SERP, attention moves with them. And where attention goes, revenue follows.
The question is no longer whether AI Overviews affect PPC. The question is whether your strategy has already adapted.
Get Microsoft Ads setup, tools and coupon for
free! 






