How the new search landscape is affecting paid ad campaigns

As we’ve discussed a lot in previous articles. The search landscape has changed dramatically in the last 12 months. Google’s AI overview has had an enormous impact on organic website traffic, as users get the information they need straight from the results page. We’re also seeing people talk to ChatGPT and Gemini more than their own friends and family.

But what does all this mean for our search ads?

1) Increased competition – In a scramble to recoup the loss of traffic from organic search. Many businesses have increased their ad budgets whilst many who have never ran ads before, now do.

2) Less clicks available – What with the AI overview and users turning to AI chatbots. The total amount of available clicks has reduced, whilst the competition has stayed the same or most likely increased.

3) Greater demand for higher intent searches – Informational and lower intent searches – that often-commanded lower CPCs – no longer require a click. The AI Overview has got them covered. This creates greater demand and competition for higher intent search terms that are more likely to lead to something more. A conversion!

What all of this means is that search ads are more competitive than they’ve ever been, and increased CPCs are being seen across many industries.

Despite this and even amongst all the noise of AI, Google still occupies over 90% of the UK search engine market. The opportunity is the same as it’s always been, but in the new search landscape only the smarter and highly optimised accounts will make the most of it.

We can help with that though!