54.6%! That's how much organic click-through rates drop when Google adds an AI overview to a search query.
I'll give you a second to finish clutching your pearls.
In a recent comprehensive study by Tracy McDonald from Seer Interactive, Tracy analyzed 10,000 keywords with informational intent ranking in the top 20 positions. The research showed a significant decline in engagement.
To validate these findings, the data sources included Google Ads for paid click-through rate (CTR), Google Search Console for organic CTR, and ZipTie AIO data to track whether an AI overview was present.
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The data was then grouped into two sets. Group one had queries where an AI overview appeared. Group two had queries where an AI overview was absent. Based on my research, Tracy's findings align with what I've been seeing. ??
As a matter of fact, Google's most recent 10-K filing mentioned that Google Network impressions were down 11%. Google doesn't directly say AI overviews are the cause, but it's safe to assume that if users see an overview, get the answer, and never land on a site, they never see an ad.
In this article, we're breaking down the challenges Google faces, how it directly affects you, and what steps you should take ASAP before it's too late.
If you're new to my work,my name is Lester, but feel free to call me Les.
I'm a founder with a successful exit, executive chairman of several DTC brands, and an award-winning performance marketer.
If you like data-driven marketing insights, check out my free newsletter,No Fluff Just Facts.
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I break down what's working in marketing right now and the AI innovations you need to pay attention to.
This isn't a "Google is doomed" piece. Trust me, they'll be fine. But if your business relies on organic traffic to drive revenue, you should pay attention to this. What's just annoying for Google could be detrimental for us, ya feel me?
Let's drop straight into what's going on and what you need to do ASAP. ???
To bring you up to speed, an AI overview (AIO) is when Google provides what it thinks is the best answer to your question using an AI-generated summary at the top of the results. No scrolling. No clicking. No visiting a site.
AI search engines like Perplexity, along with platforms like TikTok, are changing how users interact with the internet.
Users want answers fast. So Google is being forced to fundamentally change how it operates, even if that means putting its core business at risk... Yikes.
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The internet is free and packed with valuable information because blogs get paid for their knowledge through banner ads. That ad revenue covers the cost, so users don't have to pay. It's easy to forget that even if the content feels free, someone is footing the bill.
Running a website in a real way isn't cheap. Paying staff to create content and storing it online adds up fast, and honestly, advertising gets a bad rap for covering those costs.
AIO also takes away from everyday people who provide helpful information for free online and are compensated for their hard-earned expertise through a banner ad on their website.
This shift in behavior could break the internet as we know it. It forces creators with helpful information to move their content behind a paywall, making the internet pay-to-play or, in this case, pay-to-know.
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Imagine a world where you had to pay for the answer to every single question, from product reviews to how to fix a sink. It may seem extreme but think about all the blogs that now require you to subscribe just to read a story. While some websites paywall their content for different reasons, the core of what's happening is still the same. With fewer people seeing banner ads, users will pick up the tab, and AIO is only accelerating that shift.
That 54.6% drop in CTR when an AIO is present is a massive drop, but the crazy part is that I think this is the lowest it will be for the foreseeable future unless something fundamentally changes. As Google competes with other AI search engines and users look to social media for answers to their questions, it presents a unique challenge for those who rely on organic traffic, making "our next" move critical.
"Experts" will usually tell you to do one of two things. Number one is to focus more on bottom-of-funnel keywords than top-of-funnel ones.
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For example, top-of-funnel search terms are:
Based on current evidence, these terms are being cannibalized by AI.
Instead, experts recommend you focus more on bottom-of-funnel search terms:
This is undoubtedly a good strategy, but you can bet your bottom dollar that it's only a matter of time before these terms are also under siege by AI.
"Experts" also suggest you focus on LLM Engine Optimization (LEO), which is basically SEO for AI search. Instead of optimizing your content for traditional search engines like Google, you optimize it for AI tools.
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You do this by:
In many ways, your content is now formatted and tailored to a machine rather than a person.
I would tell you exactly how I feel about this approach, but Aly (my editor) says I'm not allowed to swear, so rather than tell you how I feel about LEO using a collection of my favorite four-letter words, I'll share this with you instead.
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LEO is an interesting short-term solution, but it doesn't fix the problem of not owning our audience. Pivoting to LEO, regardless of what the "experts" or "agencies" say, is like putting a bandaid on a broken arm.
I've been in this game long enough to know if it isn't AIO threatening our traffic source, it would be an update named after an animal or a privacy policy change.
That said, the only way forward is to own your audience; as business professionals, we can no longer kick that can down the road.
When I say own your audience, I'm not just talking about having a newsletter or SMS list. It's about building an authentic connection the way creators do with their followers. That means showing the human side of your business, not just sending out cold, robotic messages. Talk to people in a way that feels real.
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Brands that are winning today feel more approachable. They build community by talking with their audience, not at them. They involve people in decisions, share behind-the-scenes moments, and make their audience feel like part of the process.
This shift toward approachability might seem subtle, but it has a real impact. Studies show that 82% of people are more likely to trust a company when its senior execs are active on social, and 77% are more likely to buy when the CEO shows up online.
As we move into this new era of the internet, I will focus on 3 things:
I'm building my audience so I don't have to rely on platforms I can't control. ???
Once you've built an audience, it's like having a firehose. You can point it at a piece of content, an email, or your site and drive attention exactly where you want it.
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Having direct access to people who know, like, and trust me lets me solve real problems, which naturally leads to revenue. It's a win-win. The key difference is the personal connection.
Your next move is simple. Own your audience and build a real relationship with them. People do business with people. If you do it right, users won't need to search for a solution. They will already know you're the one who can help. ??
At the risk of sounding like a broken record, own your audience.
I promise Google will be fine, but AI could be detrimental to us, so we need to act sooner rather than later.
Hope this helps.
P.S. If you want more easy and helpful AI tips and tricks,sign up for my free newsletter, No Fluff Just Facts. Plus, you'll see behind the scenes as I pay my penance for not creating content ten years ago.
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