For years, “position one” meant something clear.
Now it doesn’t.
AI Overviews have inserted a new layer above organic listings, and sometimes above ads.
The result?
A reshuffled visual hierarchy that’s affecting click-through rates, impression share, and how users interact with search results.
If you manage paid search budgets or organic visibility at scale, this isn’t theoretical. It’s showing up in your reports.
Early industry tracking has already indicated CTR volatility on informational queries where AI summaries dominate screen space.
Let’s break down what’s changing, and what to do about it.
What’s Really Happening to Ad Placements?
AI Overviews often sit above traditional organic results and can push paid ads further down the visible screen, especially on mobile.
In some query types:
- Ads appear above AI summaries
- In others, they’re placed below
- And in certain commercial queries, they’re integrated in ways that blur user attention
The key shift isn’t just position—it’s attention fragmentation.
Users now:
- Scan the AI summary
- Decide if they need to click
- Sometimes never scroll
For PPC professionals, this means CTR volatility even when impression share looks stable.
The CTR Compression Effect
Here’s what many teams are noticing:
- Informational queries → lower organic CTR
- Mid-funnel commercial queries → inconsistent ad CTR
- Brand queries → more stable, but not immune
Why?
Because AI summaries reduce the need to click for surface-level information.
Early industry observations across informational query sets suggest measurable CTR declines when AI summaries are present—particularly on mobile layouts.
If your content or ad isn’t positioned as the next logical step, it loses urgency.
This is especially visible in industries where research-heavy queries dominate.
If you haven’t already, it’s worth revisiting how AI-driven SERP layouts impact visibility models—something we discussed in our broader piece on AI-first search systems and SEO visibility architecture on SEO Treasures.
Organic Visibility Is No Longer Just Ranking-Based
Traditional SEO reporting answers: “What position are we in?”
AI search introduces a different question:
- Are we cited?
- Are we summarized?
- Are we ignored entirely?
Ranking #2 may now generate fewer clicks than ranking #5 did a year ago—depending on how the AI layer interacts with the page.
The new metrics to watch:
- Branded search lift
- Assisted conversions
- Scroll depth engagement
- Impression-to-click decay trends
Organic teams need to collaborate more closely with paid teams. The line between paid and organic performance signals is thinning.
How This Impacts PPC Strategy
1. Creative Matters More Than Ever
When users see an AI summary first, your ad must:
- Add new value
- Offer depth
- Or promise something beyond the summary
Generic copy loses.
Instead of repeating the query intent, speak to what happens next.
Example:
If AI explains “best CRM software features,” your ad shouldn’t restate features. It should position demos, comparisons, or ROI insights.
2. Query Segmentation Needs Rework
Some query classes are now:
- AI-dominated (low click propensity)
- Mixed intent (higher commercial resilience)
- Brand-protected (still strong CTR)
Segment reporting by SERP layout type—not just keyword theme.
This gives you a more accurate performance narrative.
3. Budget Allocation May Shift
You may find:
- Lower top-of-funnel efficiency
- Higher competition in the mid-to-lower funnel
- Stronger performance in remarketing and brand defence
That doesn’t mean cut awareness. It means refining expectation models.
Competitive Response: What Smart Teams Are Doing
The strongest search teams aren’t reacting emotionally. They’re adapting structurally.
They’re:
- Aligning content with entity authority rather than keywords
- Building deeper topic clusters
- Optimizing for citation visibility
- Enhancing structured data
- Strengthening brand signals
AI systems favour clarity, authority, and structured context.
If your organic strategy still revolves around individual keyword pages, it’s time to modernize the framework.
The Bigger Shift: From “Ranking” to “Inclusion”
Search visibility is shifting from competitive placement to structural eligibility.
The question is no longer:
“Can we rank above competitors?”
It’s:
“Are we structured clearly enough to be synthesized?”
AI systems don’t reward keyword repetition. They reward:
- Entity clarity
- Topical authority
- Structured relationships
- Consistent brand signals
This is not a temporary layout test. It’s a shift in how search systems interpret and present information.
For teams already exploring AI-first SEO architecture, this evolution should feel familiar. If not, it’s worth revisiting your foundational approach before chasing tactical fixes.
Practical Next Steps for SEO & PPC Leaders
- Audit high-impression keywords for AI presence
- Track CTR shifts by query intent category
- Redesign ad copy to complement AI summaries
- Improve content depth and structural clarity
- Monitor brand search growth as a resilience indicator
The SERP isn’t shrinking. It’s reorganizing.
Your strategy needs to reflect that.
Final Thought
Search hasn’t become less competitive. It’s become more layered.
If you’re responsible for visibility, the question isn’t “Are AI Overviews good or bad?”
It’s:
“How does this change where attention goes—and how do we align with it?”
If you’re rethinking your SEO architecture in light of AI-driven search systems, explore our deeper frameworks on SEO Treasures and connect the dots before making tactical shifts.
The top of the SERP has changed.
The smart response is strategic, not reactive.
Frequently Asked Questions: AI Overviews
Are AI Overviews reducing ad CTR across all industries?
Not uniformly. Information-heavy industries are seeing a stronger impact. Highly transactional niches often remain resilient, though competition intensifies.
Should we reduce top-of-funnel PPC spend?
Not necessarily. Instead, reassess expectations and messaging. AI may absorb surface-level queries, but awareness still drives assisted conversions.
How do AI Overviews affect organic rankings?
Rankings still matter, but clicks are influenced by whether your content is referenced or overshadowed by AI summaries.
Can structured data improve AI visibility?
Yes. Clear schema, entity relationships, and semantic clarity increase the likelihood of being interpreted correctly by AI systems.
Are brand queries safe from AI impact?
Safer—but not immune. Strong brand recognition continues to protect CTR better than generic queries.
How should we adjust reporting dashboards?
Include CTR trend analysis segmented by SERP layout type and monitor impression-to-click ratios more closely.
Is long-form content still valuable?
Yes—but only if it adds depth beyond what AI summaries provide. Surface-level content is more vulnerable.
What’s the biggest mistake teams are making?
Overreacting. Abrupt budget cuts or aggressive pivots without data segmentation can harm long-term performance.
How can SEO and PPC collaborate better now?
Share query classification insights. Align landing page messaging with ad intent. Track cross-channel assisted conversions.
Is this change temporary?
Unlikely. AI integration into search appears structural, not experimental. Strategy adaptation is more sustainable than waiting for a reversal.
