Google is Now Running Paid Ad Links Inside AI Overviews - What This Means for PPC Advertisers
If you work in paid search, you have probably already felt it. Clicks are harder to earn. SERPs look nothing like they did even two years ago. And now Google has crossed a line that changes PPC forever.
Google is officially running paid ads inside AI Overviews.
You read that right. Not above them. Not to the side like classic banner ads. Embedded inside the results. For advertisers, this is not a small tweak. It is a fundamental shift in how paid search visibility works.
What are AI Overviews and why ads are now inside them
AI Overviews are Google’s generative summaries that appear at the top of search results for complex or exploratory queries. Instead of showing ten blue links, Google synthesises information from multiple sources and presents a single, conversational answer.
According to Google, AI Overviews already appear on billions of searches each month globally, with strong adoption across informational, comparison, and problem-based queries.
Until recently, these overviews were largely ad-free. That is no longer the case.
In 2025, Google confirmed that Search, Shopping and Performance Max ads can now appear directly inside AI Overviews, selected dynamically based on relevance to both the query and the AI-generated response.
This is Google monetising the most valuable and visible real estate in search.
Why Google is doing this now
There are three very clear reasons why Google has chosen to embed links and ads in AI Overviews.
1. AI Overviews reduce clicks
Multiple industry studies show that AI Overviews are accelerating zero-click behaviour.
Early data from Similarweb and SparkToro indicates that zero-click searches now account for over 60 percent of Google searches, up from around 50 percent before AI Overviews became widespread .
If users are not clicking organic results, Google needs a new way to monetise those searches. Ads inside the AI Overview solve that problem.
2. Advertisers still follow intent
Google knows advertisers will always pay to reach high-intent users. AI Overviews often appear on queries that signal research, comparison, or buying consideration. These are valuable moments.
Embedding ads inside the AI response lets Google surface commercial options before a user scrolls or reformulates their search.
3. Search is becoming conversational
Search queries are getting longer and more natural. People are asking full questions, not typing keywords.
AI Overviews thrive in this environment. Ads are simply following the behaviour shift.
What PPC advertisers need to understand immediately
Want to keep abreast of the competition? Here’s what you need to know:
Your ads may already be appearing there
The important part is this: you do not opt into AI Overview ads.
Google pulls eligible ads from existing Search, Shopping and Performance Max campaigns. If your ads are relevant, they may already be showing inside AI Overviews without you realising it.
There is currently no dedicated reporting column that clearly labels AI Overview impressions. This makes performance analysis harder and more important.
CTR is no longer the main signal
AI Overviews change how users engage with ads.
Instead of scanning multiple results, users read a summary. Ads appear as contextual suggestions rather than obvious promotions.
Early tracking from Adthena detected AI Overview ads across more than 25,000 live search queries, with noticeably lower CTR but higher downstream conversion intent.
This means advertisers need to look beyond click-through rate and focus on:
- Assisted conversions
- Conversion rate post click
- Impression share on high-intent queries
If you are optimising purely for CTR, you are already behind the 8-ball. But fear not. At CLIQ Marketing Content, we can help you get back on top. Read on to find out how.
Relevance now beats keywords
This is the biggest strategic shift.
Ads inside AI Overviews are selected based on semantic relevance, not just keyword matching. Google evaluates how well your ad aligns with the AI’s understanding of the query.
That means:
- Broader match strategies matter more
- Landing page clarity matters more
- Message alignment matters more
An ad that perfectly matches intent will outperform a tightly keyword-matched ad that misses the point. This is where PPC and SEO finally collide in a very real way.
Teams that understand search intent from an SEO perspective will outperform teams that only think in keywords.
Costs will rise, but unevenly
Let’s be honest. This will push costs up in competitive industries.
High-intent queries that trigger AI Overviews are prime real estate. Advertisers will compete harder for them. CPC inflation is already visible in legal, finance, trades, healthcare and B2B SaaS.
However, it will not be even.
Advertisers who rely on narrow match types and generic landing pages will see diminishing returns. Advertisers who align creative, intent and user experience will win more auctions without blindly raising bids.
Google has made it clear that relevance and experience signals are weighted heavily in these placements.
What smart advertisers are doing right now
At a strategic level, the best PPC teams are already adjusting.
They are:
- Mapping ads to intent
- Using SEO data to inform paid search structure
- Auditing landing pages for clarity and usefulness
- Expanding measurement beyond last-click attribution
- Testing broader match with tighter conversion signals
They are also accepting an uncomfortable truth. Paid search is now about earning relevance inside an AI-mediated experience. Clicks may be a thing of the past.
What this means long term
Ads inside AI Overviews are not a test. They are the direction.
Google is already experimenting with ads inside AI Mode, its fully conversational search interface. As generative search expands, paid placements will follow.
Regulators are watching closely. The EU has already launched investigations into how AI Overviews use content and commercial placements. But regardless of regulatory outcomes, the product direction is clear.
Search is becoming an answer engine, and advertisers are being invited inside the answer.
