How AI is Changing Paid Search in 2025

Artificial intelligence (AI) is reshaping the paid search landscape in 2025, introducing advanced automation, personalization, and new ad formats that are redefining how advertisers engage with audiences and measure success.

One or two traditional search engines dominating the market? Not anymore. New and emerging technologies, like ChatGPT, are impacting the state of search.

State of Search

Now more than ever, the state of Search is undergoing a significant transformation, largely attributed to the integration of Generative AI. Traditional search engines (like Google) are evolving to meet changing user behavior and expectations.

AI Overviews on the SERP

The emergence of AI-generated search results has given rise to Generative Engine Optimization (GEO), a practice focused on optimizing content to appear in AI-driven summaries and responses.

It’s no surprise that AI Overviews are reshaping the SERP. Ads are now more frequently displayed below AI generated summaries, decreasing ad visibility and CTR. In some cases, no ads appear alongside AI overviews, further impacting ad impressions.

With AI overviews addressing general queries, ads need to offer unique value to capture user attention. This includes highlighting exclusive offers, personalized services, or other differentiators that AI summaries cannot provide.

To navigate this evolving landscape, we recommend: 

• Leveraging Google’s AI Tools: Utilizing features like Performance Max campaigns and Smart Bidding to optimize ad performance in the context of AI Overviews
  
• Enhancing Brand Authority: Building a strong brand presence to increase the likelihood of being featured in AI Overviews, which can positively impact both Organic and Paid CTRs ​
  
• Adjusting Budget Strategies: Reallocating budgets to focus on high-intent keywords and optimizing for conversions rather than clicks, acknowledging the potential reduced overall traffic

AI Overviews are compelling advertisers to refine their Paid Search strategies, emphasizing ad relevance, targeting specificity, and leveraging AI tools to maintain performance in a changing search environment.

Impact to Organic & Paid Search CTR

We’ve found that both Organic and Paid CTRs are lower when AIOs are present, according to our most recent research.

When a client’s brand shows up in AIOs, their Organic CTR rises from 0.74% to 1.02% and Paid CTR also increases from 7.89% to 11%.

Combined, this places a higher emphasis on gaining top positions for Paid and Organic, but also being visible with AIOs.

The prominence of AI overviews has led to a noticeable decline in CTR for both Organic and Paid Search. Users often find the information they need without clicking on additional links, reducing traffic to advertisers’ sites.

Shopping in ChatGPT Search

On April 28, 2025, OpenAI introduced a comprehensive shopping feature within ChatGPT, transforming it into a robust product discovery and comparison tool. While these listings are not Paid ads, it is likely a matter of time before ad inventory becomes available within ChatGPT.

Key Features of ChatGPT’s Shopping Integration:

• Personalized Recommendations: ChatGPT offers tailored product suggestions based on user inputs and preferences, enhancing the shopping experience. ​
• Visual Product Cards: Search results now include product images, pricing, star ratings, and concise summaries, facilitating easier comparison and selection.
• Direct Purchase Links: Users can access direct links to retailer websites for seamless purchasing, although transactions are completed outside of ChatGPT. ​
• Unbiased Listings: Unlike traditional search engines, ChatGPT’s product recommendations are organic and not influenced by paid advertisements, ensuring impartiality.

Future Developments

OpenAI is exploring partnerships with retailers to integrate product feeds directly into ChatGPT, aiming to enhance the shopping experience further. Additionally, there are indications of a potential collaboration with Shopify to enable in-chat purchases, moving towards a more seamless e-commerce integration.

With over 1 billion queries every single day, ChatGPT is quickly becoming a top search engine for consumers across the globe. From a Paid Search perspective, the new shopping experience may mean that both Search and Shopping ads on Google receive less traction, thus impacting overall performance on Google but providing an opportunity for new ad inventory on a different engine.

Get Ahead of the Changes

We believe Generative AI is the catalyst for change that the marketing industry didn’t even realize we needed.

Advertisers who embrace these changes and adapt their strategies accordingly will be better positioned to succeed in the increasingly competitive Search landscape. Why? Because now it’s about relevance, not algorithms. 

Want to stay competitive in your Paid Search efforts? It’s easier than you think. Let’s talk.