How AI Search is Changing PPC in 2025 (And What to Do About It)

Published: January 2025 | 8 min read

Google's AI Overviews, ChatGPT search, and Perplexity AI are reshaping how people find information online. If you're running Google Ads, your paid traffic is being squeezed by AI-generated answers that sit above your ads and traditional search results.

But here's the good news: while organic traffic is getting crushed, paid search still works—if you adapt your strategy. Here's exactly how AI search is changing the PPC landscape and what you need to do to stay profitable.

The AI Search Problem for PPC Advertisers

What's Actually Happening

  • Google AI Overviews appear above paid ads for 15-30% of searches
  • ChatGPT search and Perplexity bypass Google entirely
  • Zero-click searches hit 59% in 2024 and rising
  • Informational queries increasingly get answered without any clicks

The bottom line? People are getting answers before they ever see your ads. Google's AI Overviews pull information from websites and present it directly in search results, eliminating the need to click through to any site—including paid ads.

What This Means for Your Google Ads Campaigns

The Bad News

  • • Impression share is dropping
  • • CPCs are rising for remaining clicks
  • • Top-of-funnel traffic is evaporating
  • • Broad match keywords are getting expensive

The Good News

  • • High-intent searches still convert
  • • Commercial keywords remain profitable
  • • PPC gives you control organic doesn't
  • • Smart advertisers are adapting fast

AI search is filtering out low-quality traffic. The people who still click on ads are more serious buyers. Your conversion rates might actually improve—but you need to optimize for this new reality.

5 Strategic Shifts to Win in the AI Search Era

1.

Double Down on Commercial Intent Keywords

Stop wasting budget on educational queries. Focus on searches that indicate buying intent:

❌ "what is email marketing" → AI answers this

✅ "email marketing software for small business" → high intent

Pro tip: Use keyword modifiers like "best," "pricing," "vs," "review," "buy," and "service" to capture commercial searches AI can't fully answer.

2.

Optimize Your Google Business Profile Aggressively

AI search pulls heavily from Google Business Profiles. Your GBP is now your most important organic asset:

  • Post weekly updates (products, offers, events) so you appear in AI-generated local results
  • Encourage reviews aggressively—AI prioritizes businesses with strong ratings
  • Add detailed service descriptions with natural language (how AI reads content)
  • Answer Q&A section thoroughly—these feed directly into AI responses

Why this matters: When someone searches "best plumber near me," AI Overview sources its recommendations from GBP data. If yours is optimized, you get free visibility even when organic rankings tank.

3.

Use Performance Max Strategically

Performance Max (PMax) campaigns work differently in an AI-driven world:

  • Feed PMax with first-party data (customer lists, website visitors) to reach high-intent audiences AI filtering misses
  • Use asset groups to control messaging by audience segment
  • Run PMax alongside search campaigns—don't replace search entirely

Caution: PMax can waste budget if you don't exclude low-value placements (mobile apps, junk YouTube channels). Audit your PMax placements every 2 weeks.

4.

Fix Your Tracking Before It's Too Late

iOS privacy changes + AI search = messy attribution. If your tracking isn't bulletproof, you're flying blind:

Essential Setup:

  • • Enhanced conversions enabled
  • • GA4 + Google Ads linked properly
  • • Server-side tracking implemented
  • • Offline conversion imports configured

Common Mistakes:

  • • Using only Google Tag Manager (GTM)
  • • Not tracking phone calls as conversions
  • • Ignoring form abandonment data
  • • No revenue value assigned to goals

Why now: As AI search changes user behavior, clean data is the only way to optimize campaigns effectively.

5.

Make Your Landing Pages Convert Like Crazy

With fewer clicks to go around, every visitor counts. Your landing pages need to convert at higher rates:

  • Answer the core question immediately (above the fold)
  • Use specific headlines that match ad copy exactly
  • Add trust signals (reviews, guarantees, case studies)
  • Minimize friction (fewer form fields, faster load times)
  • Test multiple CTAs (call button, form, chat)

Benchmark: If your landing page converts below 3%, you're leaving money on the table. In 2025, 5%+ should be the goal for high-intent traffic.

The Bottom Line

AI search is not killing Google Ads—it's raising the bar. The advertisers who adapt will see better results than ever because:

  • 1.AI is filtering out tire-kickers, leaving you with more qualified traffic
  • 2.Competitors who don't adapt will waste their budgets and drop out
  • 3.Paid search still gives you immediate visibility and control

The question isn't whether PPC still works in 2025—it's whether you're running it correctly for the new AI-driven landscape.

Want to Stay Ahead of AI Search in 2025?

Casaccio Media can audit your Google Ads, your landing pages, your Google Business Profile, and your tracking setup—and give you a full roadmap for adapting to AI-driven advertising.