How AI Search is Changing PPC in 2026 (And What to Do About It)
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 Rise of AI Search Platforms
2026 marks a turning point in search history. For the first time since Google's dominance began, users have viable alternatives that don't just search the web—they synthesize answers. Understanding this landscape is crucial for any PPC advertiser.
AI Search Platform Market Share (2026)
While Google dominates, AI-native search platforms are growing rapidly. ChatGPT alone processes 1B+ searches weekly.
Google AI Overviews (formerly SGE)
Google's AI Overviews now appear on 15-30% of all searches, with that number climbing for informational queries. These AI-generated summaries pull content from multiple sources and present comprehensive answers directly in the search results. For advertisers, this means your carefully crafted ads may appear below a wall of AI-generated text—or worse, may not be seen at all if users get their answer without scrolling.
ChatGPT Search & Perplexity
Perhaps more disruptive are AI-native search engines that bypass Google entirely. ChatGPT now processes over 1 billion searches per week, and that number is growing exponentially. Perplexity AI has carved out a niche among researchers and professionals who want cited, comprehensive answers. These platforms don't show traditional ads at all—meaning any traffic they capture is traffic your Google Ads will never reach.
Bing Copilot & Microsoft's AI Push
Microsoft integrated GPT-4 into Bing as "Copilot," and while Bing's overall market share remains small, it's growing among enterprise users and those in the Microsoft ecosystem. The AI-first search experience means even Bing users are getting answers before they see Microsoft Advertising placements.
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
Zero-Click Search Growth (Interactive)
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.
How AI Overviews Decide When to Appear
Understanding what triggers an AI Overview can help you avoid wasting budget on queries where your ads won't be seen. Google's system evaluates several factors:
- •Query complexity: Questions that require synthesizing multiple sources are more likely to trigger AI Overviews
- •Informational intent: "How to," "what is," and "why" queries almost always show AI Overviews
- •Content availability: Topics with abundant, high-quality content are prime AI Overview candidates
- •User behavior: If users historically don't click on results for a query, AI Overviews are more likely
Query Types: Which Are Safe and Which Are Dying
Not all search queries are equally affected by AI. Understanding the risk level of different query types is essential for budget allocation in 2026.
AI Overview Simulator: See Where Your Ads Appear
Professional Plumbing Services - Call Now
www.example-plumber.com
Fast, reliable service. Licensed & insured. Free estimates.
How to Fix a Leaky Faucet - DIY Guide
www.homerepair.com/faucet-guide
⚠️ "Informational" queries often trigger AI Overviews, pushing ads below the fold
High Risk (Avoid)
- • "How to..." queries
- • "What is..." definitions
- • General tutorials
- • Fact-based questions
- • Recipe searches
Medium Risk (Test)
- • "Best..." comparisons
- • Local searches
- • Review queries
- • "vs" comparisons
- • Industry-specific terms
Low Risk (Target)
- • "Buy..." transactional
- • "Hire..." service queries
- • Price/cost inquiries
- • Emergency searches
- • Brand name + purchase intent
The pattern is clear: the closer a query is to a transaction, the less likely AI will fully answer it. Someone searching "emergency plumber 24/7 open now" needs to take action—AI can't fix their burst pipe. Focus your budget on these high-intent, action-oriented queries where clicks still matter.
What This Means for Your Google Ads Campaigns
The Bad News
- • Impression share is dropping for informational queries
- • CPCs are rising for remaining high-intent clicks
- • Top-of-funnel awareness traffic is evaporating
- • Broad match keywords are capturing more junk traffic
- • Attribution is getting messier as journeys fragment
The Good News
- • High-intent commercial searches still convert well
- • Clicks you do get are from more serious buyers
- • PPC gives you control that organic SEO doesn't
- • Smart advertisers are pulling ahead of competitors
- • New ad formats are being tested for AI results
AI search is essentially filtering out low-quality traffic for you. The people who still click on ads after seeing an AI Overview are more serious buyers—they need something AI can't provide: a real business to hire, a real product to purchase, or human expertise to consult. Your conversion rates might actually improve—but you need to optimize for this new reality.
6 Strategic Shifts to Win in the AI Search Era
Double Down on Commercial Intent Keywords
Stop wasting budget on educational queries that AI will answer. Focus ruthlessly on searches that indicate buying intent:
❌ "what is email marketing" → AI answers this completely
❌ "how to choose a CRM" → AI provides comparison frameworks
✅ "email marketing software pricing small business" → high intent
✅ "buy CRM software free trial" → action-oriented
Keyword Intent Classifier
Enter a keyword to see if AI will steal your traffic:
Pro tip: Use keyword modifiers like "best," "pricing," "vs," "review," "buy," "hire," "cost," and "near me" to capture commercial searches AI can't fully answer.
Optimize Your Google Business Profile Aggressively
AI search pulls heavily from Google Business Profiles for local queries. Your GBP is now your most important asset for appearing in AI-generated local results:
- •Post weekly updates (products, offers, events) so Google's AI has fresh content to reference
- •Encourage reviews aggressively—AI prioritizes businesses with strong, recent ratings
- •Add detailed service descriptions with natural language (how AI reads content)
- •Answer Q&A section thoroughly—these feed directly into AI responses
- •Upload photos weekly—AI Overviews increasingly include visual results
Why this matters: When someone searches "best plumber near me," AI Overview sources its recommendations from GBP data. If yours is optimized, you get visibility even when organic rankings don't matter.
Use Performance Max Strategically
Performance Max (PMax) campaigns leverage Google's AI to fight back against AI search. Here's how to use them effectively:
- ✓Feed PMax with first-party data (customer lists, website visitors) to reach high-intent audiences that AI search might be filtering out
- ✓Use asset groups strategically to control messaging by audience segment and funnel stage
- ✓Run PMax alongside search campaigns—don't replace search entirely, use them together
- ✓Set up brand exclusions to prevent PMax from cannibalizing your branded search traffic
Caution: PMax can waste budget if you don't exclude low-value placements (mobile game apps, junk YouTube channels). Audit your PMax placements every 2 weeks minimum.
Fix Your Tracking Before It's Too Late
iOS privacy changes + AI search fragmentation = messy attribution. If your tracking isn't bulletproof, you're making optimization decisions with incomplete data:
Tracking Health Scanner
Check what you have set up to see your tracking score:
Your Tracking Score
0/100
Your tracking setup needs improvement. In an AI-driven world, poor tracking means poor optimization decisions.
Why now: As AI search changes user behavior and fragments the customer journey, clean first-party data is the only way to understand what's actually working.
Make Your Landing Pages Convert Like Crazy
With fewer clicks to go around, every visitor is precious. Your landing pages need to convert at significantly higher rates to maintain profitability:
- →Answer the core question immediately (above the fold, in the first 3 seconds)
- →Match your headlines to ad copy exactly—message match is more important than ever
- →Stack trust signals (reviews, guarantees, case studies, certifications, logos)
- →Minimize all friction (fewer form fields, faster load times, mobile optimization)
- →Offer multiple conversion paths (call button, form, chat, text)
Conversion Rate Impact Calculator
See how much revenue you're losing with a poor landing page:
Current Performance
20 leads
$4,000 revenue
-20% ROI
Improved Performance
50 leads
$10,000 revenue
100% ROI
By improving your conversion rate, you'd earn
$6,000/month
more revenue with the same ad spend
Benchmark: If your landing page converts below 3%, you're leaving serious money on the table. In 2026, aim for 5-8%+ conversion rates for high-intent traffic.
Diversify Beyond Google Search
With Google's dominance being challenged, smart advertisers are spreading risk across multiple channels:
- •Microsoft Advertising: Lower CPCs, different audience, and growing with Copilot integration
- •YouTube Ads: Video content is harder for AI to summarize—users still need to watch
- •LinkedIn Ads: For B2B, LinkedIn remains untouched by AI search disruption
- •Meta Ads: Social discovery is a different intent than search—AI search doesn't compete here
Key insight: The advertisers who will thrive in 2026 aren't the ones who figure out how to beat AI search—they're the ones who build demand generation systems that don't depend solely on search intent.
The New PPC Metrics That Matter in 2026
Traditional PPC metrics are becoming less meaningful. Here's what you should actually be tracking:
Metrics Losing Relevance
- ↓Impressions: AI Overviews inflate impression counts meaninglessly
- ↓CTR: Lower CTR might mean AI answered the query—not bad ads
- ↓Impression Share: Hard to interpret when AI results dominate
Metrics Gaining Importance
- ↑Conversion Rate: Quality of traffic matters more than volume
- ↑ROAS/ROI: Profitability per click, not clicks per dollar
- ↑Customer LTV: Long-term value of acquired customers
The shift is from volume-based thinking (how many clicks can I get?) to value-based thinking (how much profit does each click generate?). This is actually a healthier way to run PPC campaigns—AI search is forcing advertisers to focus on what actually matters.
Future-Proofing: What's Coming in 2026 and Beyond
The AI search revolution is just beginning. Here's what we're preparing for:
AI-Native Advertising
Google is testing sponsored results within AI Overviews. Early data suggests these placements have lower CTR but higher conversion rates—users who click are serious buyers.
Conversational Commerce
As AI assistants become shopping assistants, the ability to have your products/services recommended by AI will become a new form of "ranking." Brand authority and reviews will matter more than ever.
First-Party Data Dominance
With third-party cookies dying and AI fragmenting the customer journey, businesses with strong first-party data (email lists, CRM data, customer relationships) will have an insurmountable advantage.
Voice and Multimodal Search
AI assistants are increasingly voice-first. Local businesses that optimize for "near me" voice queries and maintain strong GBP presence will capture this growing segment.
The Bottom Line
AI search is not killing Google Ads—it's raising the bar and separating the amateurs from the professionals. The advertisers who adapt will see better results than ever because:
- 1.AI is filtering out tire-kickers and information-seekers, leaving you with more qualified, ready-to-buy traffic
- 2.Competitors who don't adapt will waste their budgets on dying query types and eventually drop out
- 3.Paid search still gives you immediate visibility and control that no other channel can match
- 4.The focus on conversion quality over click quantity leads to more sustainable, profitable campaigns
The question isn't whether PPC still works in 2026—it absolutely does. The question is whether you're running it correctly for the new AI-driven landscape, or whether you're still using 2020 strategies in a 2026 world.