Why Your Google Ads May Be Losing Clicks — The Hidden Impact of AI Overviews

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A major shift is happening in the world of search. Many advertisers are feeling the impact without understanding the cause. As search results are more affected by AI-generated summaries, called AI Overviews, businesses are experiencing sudden drops in clicks, impressions, and overall ad performance. This new challenge has made many brands reconsider their digital strategies. Digital Edenz is already assisting clients in navigating this new search landscape with clarity and confidence. Here ,the blog explains why your google ads may be losing clicks and its solutions.

What Exactly Are AI Overviews?

AI Overviews is the latest update from Google. In this update, AI-generated summaries show up at the top of search results. Rather than displaying a list of links or standard featured snippets, Google offers a brief, AI-written answer that quickly addresses the user’s query.

While this seems helpful for users, it has introduced a major problem for advertisers:

Users get answers instantly — without clicking anything.

This behaviour has created a surge in what is now known as zero-click searches.

Why CTR Drops When AI Overviews Appear

Analytics show that when an AI Overview is displayed, the click-through rate for both organic and paid results declines significantly. Since users already find what they need on the SERP itself, fewer scroll down to click an ad.

Some common issues advertisers are facing include: 

• Ads are getting far fewer clicks, even with high-quality scores. 

• Impressions are staying steady, but CTR is dropping sharply. 

• There is a higher bounce rate in mobile searches, where AI Overviews take up most of the screen. 

• Reduced visibility even for top-ranked ads.

In simple terms:

If AI Overviews appear, the top ad positions lose their dominance and clicks drop.

Mobile Searches Are Affected Even More

On mobile devices, AI Overviews occupy almost the entire top portion of the screen. Even the first paid ad often appears below the fold, forcing users to scroll. Many do not. This makes mobile performance data especially volatile after the introduction of AI Overviews.

Why Paid Search Feels Unpredictable Now

AI Overviews aren’t limited to informational queries anymore. They now appear for:

•             Short-tail keywords

•             Commercial terms

•             Transactional search queries

These are the exact search categories businesses target with Google Ads. As AI Overviews expand into these areas, ad visibility naturally shrinks.

This also leads to increased competition among advertisers fighting for the few remaining above-the-fold spots  causing CPCs to rise and ROAS to fall.

Why Your Google Ads May Be Losing Clicks

What You Should Do Right Now

To prevent performance loss and maintain visibility, advertisers need to adapt to this new AI-first landscape. Here are essential strategies:

1. Re-evaluate Campaigns Across Devices

Mobile and desktop no longer behave the same. Device-specific optimisation is now mandatory.

2. Refine Your Keyword Strategy

Shift towards long-tail, decision-stage, and high-intent phrases where AI Overviews tend to appear less frequently.

3. Strengthen Ad Copy

Since AI-generated summaries are factual and straightforward, ads that emphasise:

•             urgency

•             emotion

•             brand trust

•             guarantees

•             strong value proposition, all these stand out more and encourage clicks.

4. Track Beyond CTR

With zero-click searches rising, CTR alone can’t be your primary success metric.

Focus on:

•             conversions

•             impression share

•             cost per acquisition

•             overall campaign efficiency

5. Diversify Your Traffic Sources

Relying only on Google Ads or SEO is riskier than ever. Strengthen social media ads, email marketing, and direct traffic channels to reduce dependency on SERP visibility.

The Future of Google Ads in an AI-Powered Search World

AI Overviews are reshaping search behaviour faster than expected. Advertisers must adapt to an environment where:

•             Fewer users click

•             More answers appear instantly

•             Competition for visibility increases

•             ROI becomes tied to strategy, not just ranking

Those who evolve will continue to thrive and those who don’t may experience ongoing performance drops.

With the right adjustments, businesses can stay visible, competitive, and profitable even as AI-driven results dominate the top of Google searches. Digital Edenz continues to support brands in understanding these changes and implementing strategies that protect performance in this new era of search.

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