Here’s what blew my mind last week: Google’s internal data shows “AI Overviews is driving over 10% increase in usage of Google for the types of queries that show AI Overviews” in the US and India. But here’s the kicker – most marketers think this means their traditional ads are getting crushed. They’re dead wrong.
Google didn’t replace your search ads. They built a second floor where you can catch all the traffic you’ve been missing.
As CEO of Tenet, I’ve watched clients panic about AI Overview ads for months. Then I saw the data. A fintech startup running exact-match campaigns for “personal loans” suddenly started capturing traffic for “best way to consolidate $30k credit card debt while keeping good credit score.” Same budget, 40% more conversions. The secret? They were automatically eligible for AI Overview placements because they used Performance Max.
The Truth About What Actually Happened
Google’s AI Overview ads aren’t replacing traditional search advertising – they’re creating additional inventory. According to Google’s official documentation, “existing text, shopping, local, or app ads in your Search, Shopping, Performance Max, and App campaigns are eligible to show ads above or below the AI Overviews.”
Your keyword campaigns keep running exactly as before. But now, when someone asks complex questions like “why does my e-commerce conversion rate drop during holiday sales,” your ads can appear within Google’s AI-generated response – if you’re set up correctly.
The timeline matters for your planning:
- May 2024: Testing announced at Google Marketing Live
- October 2024: Mobile launch announced for US
- November 2024: First real sightings confirmed
- May 2025: Desktop expansion at Marketing Live 2025
SE Ranking’s research found that “86.49% of cases with AI Overviews showed no ads at all” – meaning traditional placements stayed untouched while creating new opportunities.
Why Most Marketers Are Missing the Real Opportunity
Here’s what I learned analyzing 50+ client accounts: the biggest wins aren’t coming from traditional commercial keywords. They’re coming from informational queries that reveal commercial intent.
The Context Revolution: Google explains that “both the user query as well as the content of the AI Overview are considered when serving these ads.” This changes everything.
A SaaS company selling project management software used to miss queries like “remote team struggling with deadline visibility and client communication.” Now their AI Overview-eligible campaigns capture this intent because Google’s AI understands the connection between the problem and their solution.
The Long-Tail Explosion WordStream’s data reveals that “a query with eight words or more is 7x more likely to get an AI Overview in its results.” These conversational searches represent massive untapped demand.
Our healthcare clients now reach patients searching “constant headaches and fatigue after working 60-hour weeks should I see a doctor online” instead of just “telehealth consultation.” Result? 60% higher conversion rates because we’re catching genuine need, not just keyword matching.
The Four Industries Dominating AI Overview Placements Right Now
Fintech (The Early Winners) A $50M digital lending platform switched 80% of their budget to Performance Max campaigns targeting debt consolidation intent. Within 90 days, they captured 300% more qualified leads from queries like “smart strategies to pay off $25k credit card debt without hurting credit score.”
Their secret: “According to Google’s performance data, advertisers that activate AI Max in Search campaigns will typically see 14% more conversions or conversion value at a similar CPA/ROAS.”
E-commerce (The Content Play) A mid-market athletic wear brand was hemorrhaging traffic to Amazon. They optimized their Shopping campaigns for AI Overview eligibility and started appearing in responses to “best workout clothes for hot yoga that don’t show sweat stains.” Six months later: 45% revenue increase from Google Ads.
SaaS (The Problem-Solvers) A $20M CRM company targeting small businesses pivoted from feature-based keywords to problem-based AI Overview optimization. Now they dominate queries like “customer data scattered across email spreadsheets and sticky notes how to organize.” Customer acquisition cost dropped 35%.
Healthcare (The Trust Factor) A telehealth platform focusing on mental health saw Level Agency’s finding proven true: “when users click on these ads, they spend more time on the site than they do on standard web listings.” Their AI Overview traffic converts 2.3x higher than traditional search ads.
Your 90-Day Action Plan to Dominate AI Overview Ads
Days 1-30: Audit and Optimize
Check your campaign eligibility. Google requires “AI-powered targeting solutions like broad match on Search or the keywordless targeting technology available through Performance Max.”
Most advertisers discover only 40% of their campaigns qualify. Fix this by implementing broad match keywords and Performance Max campaigns for your core products.
Days 31-60: Content Context Alignment
Your ad copy needs to complement helpful information, not interrupt it. Replace aggressive CTAs like “Buy Now – 50% Off” with supportive language like “See your personalized debt consolidation options” or “Compare CRM solutions for your business size.”
The winning formula: provide clear next steps that naturally follow from educational AI Overview content.
Days 61-90: Scale and Measure
Google’s Performance Max now serves “over one million advertisers” and delivered “more than 10% increase in conversions and conversion value” through 90+ improvements in 2024.
Use Performance Max for automatic AI Overview eligibility while maintaining granular Search campaigns for traditional keyword control.
The Mistakes That Will Cost You Everything
Fatal Error #1: Abandoning Traditional Campaigns AI Overview ads are additive, not replacement. Keep your proven keyword campaigns running while adding AI Overview-eligible campaigns.
Fatal Error #2: Keyword-First Thinking Success requires embracing Google’s AI matching over rigid keyword lists. The future belongs to intent understanding, not keyword targeting.
Fatal Error #3: Ignoring Shopping Feed Quality E-commerce businesses need pristine product data. Google’s best practices emphasize “feeds with the latest product information” and “necessary number, quality, and diversity of images and videos.”
What’s Coming Next: The AI Mode Revolution
Google’s already testing AI Mode – conversational search that allows follow-up questions. At Marketing Live 2025, they announced “ads in AI Mode, the company’s advanced AI search experience, designed for complex, follow-up-heavy queries.”
Imagine capturing entire customer conversations, not just single searches. Early positioning in AI Mode could be worth millions as Google scales this globally.
The Bottom Line
Google created a parallel advertising universe where conversational intent meets contextual ads. Your traditional campaigns keep running exactly as before, while AI Overview placements capture the complex, high-intent queries you’ve been missing.
Google’s data confirms that “people have been finding the ads within AI Overviews helpful because they can quickly connect with relevant businesses, products and services to take the next step at the exact moment they need them.”
The opportunity belongs to marketers who optimize for both traditional search and AI Overview contexts simultaneously. While competitors debate whether AI will kill search advertising, smart marketers are already capturing traffic from both floors of Google’s expanded building.
Stop choosing between old and new. Master both, and own the entire search landscape.
