How Google’s AI search is changing PPC

The not-so-secret tech revolution is underway, and AI is at its very centre. In the marketing world, we’ve seen AI turn strategies on their head and transform algorithms, causing us to rethink our approach to visibility. This includes when it comes to pay-per-click (PPC) and paid search, with Google’s use of language learning models (LLMs) hauling us into a new age.

What can we expect from AI and PPC moving forward? Let’s take a look.

A New Search Layout

Google isn’t shy about using AI in its search results. AI Overviews has shot to the top of the search results page, dominating a huge chunk of what users see before they scroll. This has pushed some PPC results further down - though not always.

Sponsored products, for instance, currently appear before AI overviews. We’re also noticing an uptick in sponsored results appearing before AI, particularly when looking for service-based businesses. If you search ‘digital marketing services’, for instance, you’ll see that the big ‘Sponsored results’ header appears first, followed by AI overviews, and then the organic results.

How AI Affects PPC for Different Industries

At KAU Media Group, we work across industries - from education to healthcare - and we’ve been keeping tabs on how Google’s AI is affecting paid search for different sectors. What we’ve noticed is that it’s far from equal.

In retail, for instance, AI overviews don’t dominate quite so heavily. In fact, where queries are kept short, AI often doesn’t appear at all. This is different to professional service industries, like healthcare and legal, where AI dominates. 

However, we would say that concise queries lead to fewer AI results across the board, indicating that shorter key terms could be the way to go for PPC and search optimisation.

Is PPC Now More Important for Visibility?

When looking at the new Google SERP layouts, it’s clear that PPC is more important than ever. Organic searches now have the lowest visibility, demoted beneath both PPC and AI overviews, meaning that users have to scroll below the fold before seeing them.

If you want your website to appear outside of AI citations while still gaining a lot of engagement, PPC is the way to go. 

Of course, this doesn’t mean that organic search is done. Search engine optimisation (SEO) is still highly relevant and feeds directly into AI citations, with many overlapping techniques. For best results, use SEO and generative engine optimisation (GEO) alongside PPC to cover all your bases.

Fewer PPC Ad Slots

Alongside changes to visibility, AI overviews have also made PPC a more competitive market. There are now fewer ads sitting above the fold, making it harder to win bids for important keywords. 

To adjust for this change, you need a watertight PPC campaign that’s optimised for visibility. This means targeting relevant keywords that balance search quantities with competition, alongside engaging ad copy to give you the best chance of success in a crowded search landscape. 

Develop an AI-Friendly PPC Campaign

AI doesn’t have to ruin your paid media strategies. At KAU Media Group, we keep our eye on the ball to ensure we pivot alongside Google updates, including when it comes to AI.

For agile strategies that move with technology, work with our PPC team.