GenAI necessitates a holistic strategy across paid and organic search tactics

Article by Evelyn Mitchell-Wolf | Jul 2, 2024

The layout of Google SERPs is changing. They still show sponsored results but not always at the top. And when AI Overviews are shown in results, ads can appear alongside organic references. A strong organic approach will be critical to search marketers as they navigate this shift.

It's still early days for search ads in AI Overviews

Ads are already being served in AI Overviews. At its Marketing Live event on May 21, 2024, Google announced that it will start testing search and shopping ads in AI Overviews when the ad is relevant to the query and the content in the Overview. Tests will draw from existing search and Performance Max campaigns, meaning advertisers cannot completely opt out.
But there’s minimal visibility into their performance. As it stands, advertisers won’t know if or when their ads appear in AI Overviews. Or whether AI Overview ads contribute to a lift or reduction in campaign performance.
New measurement tools are required. If AI Overviews provide consumers with information that satisfies their needs, they won’t need to click on any linked sources—whether they’re sponsored or organic. This scenario would make clicks an unreliable indicator of ad engagement.

A paid-only approach is a gamble, given variations in SERP layouts

Conventional search ads aren’t going away. Because AI Overviews are currently present only on a minority of SERPs, there’s still plenty of opportunity for old-fashioned “blue link” ads. Google Search was responsible for over half of Alphabet’s Q1 2024 revenues, and it’s not about to kill its cash cow.
But advertisers should expect extra volatility in paid search, at least temporarily. There’s currently no consistency in the way paid ads show up in or around AI Overviews. And Google could remain conservative about how often AI Overviews are triggered or hit the gas pedal on them. Or users may start asking more complex questions once they realize Google can answer them better, triggering more AI Overviews organically. In the short term, there’s no way to know.

Read the full report, Generative Search Trends 2024.