October 9, 2024 / Thought Leadership

An Overview of Google’s AI Overview

Scott Freeman, SEO Manager
Anthony Quagliata, Paid Search Manager

Google’s AI Overview feature has drawn quite a reaction from the world of organic and paid search experts, but is it an innovative step forward, or is it simply Google trying to stay afloat in the fast-evolving AI race? As this feature continues to roll out across search results, many wonder if it’s a game changer or just hype.

What Exactly Is Google’s AI Overview?

In a nutshell, the AI Overview feature generates a succinct summary based on AI’s understanding of your search query. Instead of having users click through multiple search results, they are presented with a synthesized snapshot of relevant information at the very top of their search, theoretically offering faster and more accurate answers. Google touts it as a way to enhance user experience, making search more intuitive and less time-consuming.

How Often Is the AI Overview Showing Up in Search?

Many are curious how often they’ll encounter these AI Overviews, and research shows they now appear in 3.9% of trending news searches — a relatively small, but growing percentage. The potential for expansion is huge, though, as the feature is still being tested and improved. For example, some reports show that Google AI Overview results have been showing up in 80% of searches for high-profile news events, signaling that the tech giant is serious about this AI integration.

How Does This Impact SEO?

The real elephant in the room is how this new feature affects SEO. Will it boost traffic to your site or steal it away? The answer is complicated and murky. On one side, AI Overviews give users faster answers, potentially leading to lower click-through rates (CTR) for organic results. Some SEO experts are already sounding alarms, saying AI summaries could reduce visibility for traditional SEO and that organic results may be less prioritized. Initial tests have shown the AI Overview could lead to organic traffic decreases anywhere from 18-64% for some websites, especially for informational-type queries.

On the other hand, some SEOs see this as an opportunity. For example, content optimization for AI-driven summaries might become the next big thing, with SEO professionals looking to adjust their tactics. If AI Overviews are prioritizing concise, well-structured content, there’s room to optimize accordingly and stay relevant. With detailed analytics reporting, SEOs can gather relevant information on user behavior and engagement within the search engine results page itself. With that insight, SEOs can begin to hone their strategies and use the AI Overview to their advantage. 

How Does This Impact Paid Search?

Google’s AI Overview has already impacted paid search results in ways that are hard to ignore. As consumers have begun exploring this feature, there has been a significant rise in search traffic on Google. However, much like organic, a decline in paid search click-through rate has been observed since most people need to click through to ad listings rather than explore the summary the AI Overview provides. 

Another notable finding is a year-over-year rise in CPC (cost per click) as click volume has declined for advertisers. While CPC increases can also be linked to increased ad prices for companies to meet targets, it is hard to imagine they will come back down as Google continues to alter where ads show around the AI Overview. Considering they’ve talked about returning top placements above the Overview, it likely signals that CPC will continue to rise. Also, as recent as the beginning of October 2024, ads were introduced into AI Overview for mobile users and will likely become an increasingly competitive placement for competitors. 

What’s Next for AI in Search?

So, is this indeed the future of search? Google is banking on AI, but whether the feature is here to stay depends on how it adapts to user behavior. With 57% of users reporting positive experiences with AI in search results, the technology seems to be resonating with many. But at the same time, only 23% of users say they fully trust AI-generated results, leaving a lot of room for growth — and skepticism.

At the end of the day, Google’s AI Overview feature has the potential to reshape how we search and how marketing professionals do their jobs, but it’s still too early to tell if it will revolutionize the experience or simply be a flash in the pan. As AI continues to evolve, monitoring how these changes impact SEO, paid search, user trust, and the broader digital landscape is crucial.