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What Impact does AI Overview Have on Google Ads? Optimizing your Strategy for the New Search Experience

Alyssa Slovin   February 13, 2025  
Google Search

Google is the world’s number one search engine, making it an effective channel for clients looking to reach their target audiences. But with the integration of generative AI into its search engine results through its new AI Overview tool, Google has started prioritizing its own AI results over other results – including ads. Google now uses that valuable real estate space that was reserved for ads for its own AI results. So what impact does AI Overview have on Google Ads?

Increasing Awareness through Google Ads

As health care public relations professionals, we have clients frequently asking us how to increase traffic and build awareness of their organization or a key issue; and one of the most effective ways to do that is to utilize Google’s influence. Google Ads has become one of the go-to advertising tools that we use to help our clients get to the top of Google Search.

I just recently earned my Google Ads Search certification to be able to fully optimize each aspect of our clients’ campaigns, from their keywords and ad assets to their planning and bidding strategies. But I’ve noticed within just the past few months something that has completely changed the way communications professionals will approach Google Ads indefinitely.

Case in Point

We have been creating content and managing a Google Ads campaign for a client and their Whole Health initiative for more than two years. Their ads promote their free, informational resources about the small steps anyone can take to improve their health and well-being.

We have seen an incredible impact from this campaign. The ads have resulted in more than 5,000 additional website clicks and more than 75,000 additional website impressions.

But a few months ago, we started to notice a dramatic decline in impressions and clicks on our ads. After some investigating, we learned that the ad real estate space available on Google is shrinking because of the introduction of AI Overview.

AI Overview is built to be so informative that users don’t need to click on an external link to answer their query. That is Google’s goal: to monopolize their users’ searches and keep users on Google. To achieve this, they have chosen to limit the available ad space at the top of the page, even though they lose potential revenue. Because there is less space for ads to be displayed, placing Google Ads is more competitive than ever.

Optimizing your Google Ads

Google determines which ads are displayed based on several factors that impact your Ad Rank – including the bid amount, the relevance of the ad’s keywords and landing page content to the user’s query, and the impact of the ad assets – to prevent businesses from paying more to rank for non-relevant searches. Because organizations are competing for less space, the increase in competition means that your Google Ads must be as relevant as possible in order to reach your target audience. If increasing your daily budget is not an option, here are a few tips to optimize your Google Ads:

  1. Tailor your ads to audience needs. Make sure that your ad content is answering an existing question or fulfilling an existing need of your target audience. This will impact how Google measures your ad quality and will help Google see your ads as relevant for your audience.
  1. Use ad assets to make your content stand out. Ad assets, formerly known as ad extensions, include headlines, descriptions, images, additional site links, phone numbers, location information and more. All these additions make ads more visually appealing and provide more information to users. With assets, users are more likely to read what your organization has to offer and want to learn more.
  1. Match your goal to your key performance indicators. Make sure you are using the correct strategy based on your goals. For example, for our client with the Whole Health initiative, our goal is to increase website traffic. So we focus on maximizing clicks, as opposed to conversions or impression share.
  1. Pair your Google Ads with other digital strategies. Consider other tactics that might compliment your Google Ads. For instance, we use search engine optimization to organically boost clients’ content to the top of Google Search results and social media to form connections with their audiences on Facebook, Instagram, and X. Email marketing allows us to reach their contacts directly in their inboxes with new content.

As Google’s algorithm changes and the AI Overview becomes more prominent, make sure your Google Ads are optimized to meet the growing competition. Additionally, continue fine-tuning your digital strategy, to stay ahead of the curve.

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