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[NEW STUDY] Google Organic & Paid Traffic Falls

The search landscape is shifting fast, and marketers can no longer rely on the same strategies that worked a year ago. Google’s AI Overviews (AIOs) are fundamentally altering how users interact with search results, leading to declining click-through rates (CTRs) for both organic and paid search.

But Google isn’t operating in a vacuum. Rising competition from AI-driven discovery platforms, such as Meta AI, OpenAI’s ChatGPT, and Perplexity, is pushing Google to rethink how it delivers information. Users are increasingly bypassing traditional search altogether, turning to AI assistants and social platforms for answers. Google’s response? A more AI-driven search experience that prioritises fast, summarised answers over traditional website links.

For businesses, this means a new reality where fewer users are clicking through to external sites. But not all is lost, understanding these changes and adapting your search strategy can still provide opportunities for visibility and engagement.

How Google’s AI Overviews Are Changing Search Behaviour

 

What Are AI Overviews?

Google’s AI Overviews, formerly known as Search Generative Experience (SGE), are AI-generated summaries that appear at the top of search results. These summaries synthesise content from multiple sources into a single, AI-crafted response, often reducing the need for users to visit individual websites.

While Google claims AI Overviews improve search satisfaction, recent data shows they are reducing traffic to traditional organic and paid search results. A study by Seer Interactive analysed 10,000 informational keywords and found a sharp decline in CTRs when AIOs were present.

Organic CTR Decline, But Only When AIOs Are Present

For queries where AIOs appeared, organic CTR plummeted from 1.41% to 0.64% year over year. Users are finding the answers they need directly within AI-generated summaries, reducing the incentive to click on organic results.

Interestingly, for queries where AIOs were absent, organic CTR actually increased. This suggests that SEO opportunities still exist, but mainly in areas where AI Overviews have yet to dominate.

Paid CTRs Are Falling Across the Board

Paid search is also struggling. The study found that paid CTR declined year-over-year regardless of AIO presence. This suggests a broader shift in search behaviour, likely influenced by:

  • Growing AI adoption – Users are turning to AI assistants like ChatGPT, Perplexity, and Meta AI for direct answers, bypassing Google entirely.
  • Shifts in discovery behaviour – Platforms like TikTok and Reddit are becoming go-to sources for information, particularly among younger users.
  • Ad fatigue – Increased ad saturation and user distrust of paid search results may be reducing engagement with Google Ads.

The Brand Effect: Higher CTRs for Those Featured in AIOs

One surprising insight from the study was that when brands were featured within AI Overviews, their CTRs actually increased:

  • Organic CTR rose from 0.74% to 1.02%
  • Paid CTR rose from 7.89% to 11%

This suggests that appearing in AI Overviews can act as a trust signal, making users more likely to engage with a brand’s website or ads. Securing a spot in AI Overviews could become a key strategy for businesses looking to offset declining CTRs.

Why Google Is Rushing to Adapt – The AI Discovery Wars

Google’s dominance in search is being challenged like never before. The rise of AI-powered discovery platforms is forcing Google to accelerate its AI integration efforts. Key developments include:

  • Meta AI is embedding generative search across WhatsApp, Instagram, and Facebook, allowing users to ask questions and receive AI-generated responses without ever opening Google.
  • OpenAI’s ChatGPT is evolving into a search alternative, integrating live web browsing and citation-based answers to provide real-time information.
  • Perplexity AI is gaining traction with its “answer engine” approach, positioning itself as a Google alternative for users seeking AI-curated responses.
  • Amazon’s AI-powered search is being integrated into Alexa and eCommerce, potentially diverting product searches away from Google Shopping.

With AI-driven discovery rapidly changing how users find information, Google must adapt to stay relevant. This means doubling down on AI-generated content and integrating AI Overviews into a broader range of searches.

What’s Next? Google’s 2025 AI Search Developments

Google is expected to roll out several AI-driven changes in 2025, including:

  • Expanded AI Overviews – AIOs will appear in more query types, including commercial and transactional searches.
  • Personalised AI Search – Google is testing AI-driven personalisation, tailoring results based on user behaviour and search history.
  • More AI-Generated Ads – Dynamic AI-created ad formats will adjust in real-time based on user intent.
  • Deeper Integration with Google Shopping – AI-generated product recommendations will become more prominent, altering eCommerce search behaviour.

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