Paid search advertising is in its AI era
- Michelle Andrade
- Feb 10
- 4 min read
Updated: Feb 13
How brands need to adapt their search strategy to outrank and outsell in 2025
Raise your hand if you've used ChatGPT, Claude, or another generative AI tool in the last week.
Looks around for hands
We don't need to tell you that AI is transforming the way we search for information and overhauling paid search advertising, as well.
While generative AI chatbots like ChatGPT and Perplexity challenge Google's long-held search dominance, Google is keeping pace with a flurry of new developments like AI Overviews in search results, Multimodal AI, Gemini, Meridian, and PMAX, just to name a few.
What does all of that mean -- better yet, what are the most important parts for brand marketers to know?
Our paid search advertising experts have broken down a few key developments that can help brands run more cost-effective and fruitful ad campaigns today.
Why is my CTR suddenly dropping?
Google AI Overviews (AIOs) are fundamentally altering search result layouts.
Recent research confirms a significant shift in search behavior: both organic and paid CTRs have reached historic lows, especially for queries featuring AIOs. AIOs contribute to "zero-click" searches, where users get answers directly in the search results, reducing website visits.
While CTRs drop, search marketing remains critical for brand authority, trust, and engagement. Success will be measured by visibility, AI-driven search presence, and multi-touch attribution rather than just clicks.
Here are 4 ways search marketers should adapt to AI Overviews:
1. CTR alone is no longer the best metric.
Brand impression share should be a primary KPI in non-conversion campaigns and a secondary KPI in conversion campaigns. Conduct brand lift studies with partners like Google, Nielsen, or Lucid; and evaluate search-assisted conversions via GA4 and multi-touch attribution.
2. Leverage Google's AI-powered tools like Performance Max (PMAX) to align with user intent.
High-impact formats like PMAX optimize across Google's entire ecosystem, not just traditional search placements. Our clients see optimal results when deploying multiple campaigns with robust creative assets and comprehensive audience data.
3. Test different AI-optimized ad formats to maintain visibility.
While AI Overviews don’t allow direct ad placement, Google says other formats like PMAX and Shopping Ads can still be included in AIOs if they're aligned with the searcher's intent. Additionally, Google's Demand Gen campaigns deliver immersive, discovery-focused ads designed for upper-funnel objectives.
4. Partner with a strong SEO team for organic search.
Along with your paid search initiatives, it's equally important to adapt your organic search strategy to optimize for visibility in an low-click environment. SEOs should optimize content for AIO inclusion, track organic traffic using Google Analytics, and monitor AIO presence with ZipTie or Seer's Generative AI tracker.
The rise of Reddit
Early data shows Reddit emerging as a strategic alternative to traditional search engines. According to Similarweb data, Reddit's Google-referred traffic has increased by 40% year-over-year. This growth has enhanced the appeal of Reddit's advertising platform, particularly for brands seeking to connect with high-intent audiences actively discussing products and services.
PMAX pumps up
Google's Performance Max (PMAX) continues to evolve, with new user controls addressing previous concerns about automation. Our clients see optimal results when deploying multiple campaigns with robust creative assets and comprehensive audience data.
However, it's crucial to note that human oversight remains essential for achieving peak performance. While PMAX offers sophisticated automation capabilities, successful campaigns require strategic input and monitoring from experienced marketing professionals who can fine-tune parameters and ensure alignment with brand objectives.
Demand Gen demands attention
Google's Demand Generation campaigns are also gaining traction as a vital tool for driving upper-funnel engagement. This format delivers immersive, discovery-focused ads across multiple Alphabet properties including YouTube Shorts, Discover, and Gmail.
Campaigns are specifically designed to optimize for awareness and consideration metrics, making them particularly attractive for businesses looking to expand their reach and build brand equity. Early adopters of Demand Gen report impressive engagement rates, with particularly strong results when campaigns incorporate high-quality video assets and curated image collections.
Their success underscores the importance of investing in diverse creative assets to maximize campaign effectiveness.
And remember:
Paid search advertising goes way beyond Google
Social media platforms like TikTok and retailers like Amazon are now the preferred search engines for many Gen Z consumers, so social-search and retail-search must be part of your integrated media strategy to reach them effectively.
While these tools offer powerful optimization capabilities, success in using them still hinges on human direction and high-quality data inputs.
Fortunately, we're all stocked up on both.
Imagine what we could do for your brand?
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