The search landscape has seen a tectonic shift. Are your campaigns ready for the challenge?
For years, search marketing operated on established principles of organic ranking and paid ad placement. In today’s landscape, the rollout of AI Overviews (AIO) and the introduction of the conversational AI Mode (AIM) mark a fundamental transformation.
These features, while both powered by generative AI, create two distinct new “search” experiences for users and soon new challenges for advertisers.
This is not an optional update, it’s a strategic imperative. AI change is coming whether you participate or not. Your Google Ads strategy will need to evolve to capture demand across both the quick-answer summaries and the deep, conversational research environment in order for you to compete on this new front.
The approaching dual challenge of the Google AI search landscape
Understanding how Google customers are interacting with AI and where your existing ads will end up overlapping with AI is the first step toward effective strategy.
AI Overview
User experience: The AI summary appears at the top of the standard search results page (SERP). It offers a quick, synthesized answer.
Advertiser implication: Visibility loss: Shrinks above-the-fold ad space, increasing competition for remaining slots.
AI Mode
User experience: A conversational interface where users are likely to ask multi-step, complex questions (like a chat bot).
Advertiser implication: Intent capture: Allows ads to be matched to the entire conversation thread, not just a single keyword, suggesting higher-quality, deeply qualified traffic.
While the user experience differs, the method to achieve ad placement across both AI features is largely unified by Google’s prioritization of AI-powered campaign types.
The strategy for AI ad eligibility
To successfully place ads in or around both AI Overviews and AI Mode conversations, campaigns must speak the language of Google’s artificial intelligence.
We have identified the three core methods that grant campaigns eligibility for these new, high-value placements:
1. Performance Max (PMax) campaigns
PMax is Google’s most automated campaign type, built to find converting customers across all of Google’s channels, including the emerging AI inventory. By giving PMax high-quality assets and conversion signals, you grant the AI the necessary flexibility to place your ads contextually in both the AIO summary and the AIM conversational flow.
2. Use of broad match keywords in search campaigns
The core function of both AIO and AIM is to handle complex, informational, and long-tail search queries. These queries are naturally missed by restrictive exact or phrase match types. Smart use of Broad Match keywords with a conversion-focused Smart Bidding strategy behind them ensures the algorithm can capture the underlying intent of the user’s complex query or conversational thread, making your ad relevant for the AI-driven match.
3. Leveraging AI Max for search campaigns
AI Max for search is the ultimate AI optimization layer, designed to set up your search campaigns for use in Google’s AI-enhanced features. The generative AI uses your ad landing pages to dynamically tailor your ad copy and targeting to match the evolving conversational context within AI Mode and the intent of AI Overviews. This is an important factor when capturing the “keywordless” queries that drive AI engagement.
The inevitable impact: costs & traffic quality
Successful setup for Google’s AI ad eligibility is the first step, but it is also important to understand the reality of this shift. The shifting dynamics created by AI Overviews and AI Mode are highly likely to dramatically affect our costs and traffic quality.
The cost consequence: Increased CPC and CPA
- AIO Surface Competition
The AI Overview suppresses the standard SERP, leading to less visibility for ad slots. This is already forcing advertisers to bid more aggressively, resulting in higher Cost Per Click (CPC) for the remaining premium positions as appearing top becomes even more important.
- AIM Premium Pricing
Ads placed within the conversational flow of AI Mode are highly contextually relevant, often appearing as a logical “next step” in a complex journey. These high-intent clicks are the new premium placements and will likely end up leading to an increase in your Cost Per Acquisition (CPA).
The quality opportunity: Qualified Traffic
While volume may decrease for traditional ads, the quality of traffic from AI surfaces is expected to be higher.
- Higher intent in AIM
A user who engages in a multi-step conversation with AI Mode is likely performing deeper research. The ads triggered in that thread are matched to a rich profile of “known intent” from the Google AI, resulting in expected higher conversion rates (CVR) and in theory better-qualified leads.
- Shorter path to decision
By placing your ads directly into an AI-generated answer, you are able to shorten the user’s journey from search to decision. Which could take more steps and ad channel touch points with a traditional search query.
Our strategic blueprint for the AI era
The age of the rigid, restrictive PPC campaigns is drawing ever closer to its end. Winning in the new AI landscape demands a sophisticated strategy, flexibility both tied up with Automation.
Whilst eligibility for ads to be shown in the Google AI spaces depend on the 3 criteria mentioned above, success will be centred on optimizing your entire campaign ecosystem for AIO and AIM with these 3 core principles:
1. PMax and broad match mastery
Move beyond restrictive keywords opting for broad match, employing advanced negative keywords and strict conversion value targets to ensure the AI’s broad reach remains highly relevant to your goals.
2. Data-driven alignment
Prioritization of data: the maintenance of high-quality Product Feeds and robust First-Party Data. These are the crucial inputs that allow Google’s AI to accurately match your offering to the nuanced intent within both AI Overviews and AI Mode.
3. Conversion quality first
Implement advanced conversion tracking (e.g., lead qualification, offline conversion import, enhanced conversions) to ensure you are training the AI to seek out high-value, qualified prospects, thereby justifying the likely increase in CPC.
The future of search advertising is already here, delivered across two powerful AI channels. Don’t risk being left behind as the competition adapts.
Are your campaigns ready to compete in Google’s AI-driven search landscape? Partner with us for hands-on support.
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