Traditional search traffic expected to drop significantly

Gartner predicts a decline of 25% in traditional search traffic by 2026, as AI-powered search platforms like ChatGPT and Google’s Search Generative Experience (SGE), AI Overviews, gain prominence. Google’s recent expansion of SGE to over 100 countries signifies a major shift in how users interact with search. AI Overviews, integrated directly into Google Search, offer instant, AI-generated summaries, reducing the need for extensive clicking through multiple pages. This streamlined approach provides quick answers to complex queries. AI Overviews is now becoming the default Google Search experience without the option to opt out.

Video: Snapshot of AI search features being rolled out.

Source: AI Overviews in Search are coming to more places around the world, Google ads blog

What’s changing for search advertising

As AI-powered tools take over informational and transactional search queries, advertisers need to rethink how to maintain visibility.

Fewer searches across the funnel in conventional search: Product discovery, research, and purchase-intent searches are expected to decrease on platforms like Google and Bing as users turn to AI assistants for personalized recommendations and comparisons. This shift results in fewer shopping ad impressions and clicks, impacting advertisers’ reach and engagement.

Fewer Ads Above the Fold: Google’s SGE shows fewer ads in its search results compared to traditional search engine results. This is likely to increase competition for the remaining ad space, driving up the cost-per-click for advertisers.​

AI-Powered, Instant Results: Search engines will increasingly rely on AI-generated responses to user queries, with fewer users clicking through to websites. As a result, zero-click searches—where users find answers without leaving the search results page—will become more common​.

Rich Visual and Multimedia Content: Google’s AI-generated results will emphasize visual aids, such as product images, infographics, and videos, to make the search more engaging. 

AI-Powered Ads and Product Listings: Advertisers should expect AI-driven ad placements that integrate more naturally within AI-generated responses. Ads won’t just appear as banners; they’ll be embedded contextually, offering users more relevant product suggestions that align with the search experience.

Source Credibility: AI-driven platforms like Google will prioritize trustworthy, high-authority content. Ensuring your brand or website is seen as a reliable source will be critical for being included in AI-generated summaries​.

Video: Search in the Gemini Era

Source: Introducing a new era of AI-powered ads with Google, Google ads blog

How advertisers can adapt to the new reality

LLMs and AI platforms like Google’s Search Generative Experience rely on structured data to understand and feature products in search results and recommendations. Product listings and feeds must be optimized to ensure your products are visible in these AI-driven searches.

Use Structured Data: Implement product schema on your product pages to clearly define key attributes like price, availability, and reviews. This structured data helps AI platforms like Google’s SGE and ChatGPT recognize and promote your products in relevant recommendations searches. Rich snippets and featured snippets can also increase the chances of your product being included in AI-driven search results by making your information more accessible to AI platforms.

Optimize Google Shopping Feeds: Ensure your Google Merchant Center feed is regularly updated and detailed, including titles, descriptions, and pricing. Accurate and comprehensive product feeds increase your chances of appearing in AI-driven product comparisons and other search results. Product titles and descriptions should be optimized to include high-intent keywords that match common user queries. This helps AI recognize your products when users ask specific, intent-driven questions​.

AI platforms are increasingly sophisticated in how they assess the quality of products to recommend. Product reviews and ratings provide AI systems with reliable data points about a product’s performance and customer satisfaction. Google’s AI and similar models heavily rely on these factors to determine whether a product is trustworthy and whether it should be highlighted in a comparison.

Focus on first-party data and server-side tracking

With third-party cookies becoming obsolete, first-party data collected from user interactions, such as website visits, email campaigns, and loyalty programs, will be the backbone of your retargeting campaigns. Pairing this with server-side tracking enhances data collection accuracy and compliance with privacy regulations​.

Dynamic retargeting with AI

AI campaign platforms use dynamic creatives to serve personalized ads based on user behavior, enabling granular targeting that increases relevance and engagement. AI helps ensure your ads reach users at the optimal moment, improving overall retargeting performance.

Leverage AI-powered dynamic creatives that adjust in real-time based on user interactions. Show users products they’ve previously browsed or products related to their past purchases, keeping the ads highly relevant. Use real-time bidding and AI optimization to serve personalized ads to users at the right time, maximizing their likelihood of conversion.

Enhanced conversions for paid search campaigns

As privacy regulations limit third-party tracking, Enhanced Conversions helps advertisers improve conversion tracking using first-party data. This ensures better performance and optimization of your paid search campaigns.

Maximizing data gathering through consent and value exchange

In a privacy-conscious environment, gaining user consent for data collection is crucial. Offering users tangible benefits in exchange for their data encourages more voluntary data sharing, which is vital for building accurate audience lists.

Key actions to prepare your paid search for the AI transition

Here are all the key actions boiled down to take full advantage of the AI capabilities Google ads has to offer.