The mechanics are changing. The fundamentals aren't.
AI search is generating a lot of panic—CTR collapse, zero-click apocalypse, the death of keywords. But for PPC managers, the shift is more nuanced than the headlines suggest.
Here's what's actually different, what stays the same, and what you should do about it.
The Traffic Reality
Let's start with the numbers:
Traditional search (Google, Bing): Still handles 83%+ of all search queries. Massive scale, mature auction mechanics, extensive targeting options.
AI search (ChatGPT, Perplexity, AI Overviews): Growing fast but still small. ChatGPT handles roughly 4-5% of "search" queries globally. Perplexity saw 205% YoY traffic growth but still trails significantly in absolute terms.
The zero-click concern is real: When AI Overviews appear, top-ranking organic results lose 34.5% of clicks. For non-branded queries, CTR drops nearly 20%.
But here's the counterintuitive finding: CTR on keywords with AI Overviews has actually been rising throughout 2025. Users may click less often, but when they click, they're more qualified.
Conversion Quality: The 23x Factor
This is the most important number in this entire discussion.
Ahrefs found that AI search visitors convert at 23 times the rate of traditional organic search visitors. They accounted for only 0.5% of traffic but generated 12.1% of signups.
Why? AI search pre-qualifies users. By the time someone clicks through from an AI response, they've already:
- •Had their basic questions answered
- •Compared options
- •Narrowed their choices
- •Reached a decision point
Traditional search catches users at every stage—early research, comparison shopping, ready to buy. AI search primarily delivers users who are ready to act. For PPC, this means your landing pages need to shift from education to execution. The user already knows what they want. Your job is to remove friction and close.
How Ads Work in Each Environment
Traditional Search Ads
- •Keyword-triggered
- •Auction-based bidding
- •Clear separation between ads and organic results
- •Extensive targeting and exclusion controls
- •Mature measurement and attribution
AI Overview Ads
- •Semantically matched to query AND response
- •Ads appear "when relevant to both the query and the response provided"
- •Integrated into AI-generated summaries
- •Limited reporting—lumped into "Top Ads" in Google's interface
- •No dedicated metrics for AI placements
AI Mode Ads (Google's new conversational search)
- •Appear within multi-turn conversations
- •Users asking longer, more complex queries (2-3x traditional length)
- •Ads integrated into conversational responses
- •Still in testing phase in the US
The fundamental shift: Traditional ads match keywords. AI ads match intent AND context. Your ad needs to genuinely help solve the user's problem as understood by the AI.
The Measurement Gap
Traditional search has decades of attribution infrastructure. AI search doesn't.
What you can't measure in AI search today:
- •Which conversions came from AI Overview placements vs. traditional
- •Performance in AI Mode specifically
- •Cross-platform attribution across different AI tools
- •The "zero-click" influence on later purchases
What you can measure:
- •Overall Search campaign performance trends
- •Branded search volume changes
- •AI referral traffic (via GA4)
- •Incrementality through Google's lift studies
The practical approach: Track directional trends rather than precise attribution. If branded search is rising and conversion rates are improving, your visibility strategy is working—even if you can't attribute specific conversions to AI placements.
What to Do Now
01Enable AI Max on stable campaigns
Test the "one-click" upgrade on campaigns with consistent performance. Monitor the new queries it finds.
02Shift creative toward problem-solving
AI users arrive knowing what they want. Lead with solutions, not education.
03Track branded search
This is your proxy for AI visibility impact. If people are searching your brand name more, you're being mentioned in AI responses.
04Accept measurement uncertainty
Build a framework that combines platform reporting, incrementality testing, and trend analysis. Precise attribution isn't available.
05Invest in citability
Your organic presence affects your paid performance. Content that AI systems reference lifts your entire funnel.
The Bottom Line
AI search ads aren't replacing traditional search ads. They're adding a new layer.
Traditional search: High volume, mature mechanics, full control, clear attribution.
AI search: Lower volume (for now), evolving mechanics, less control, uncertain attribution—but dramatically higher conversion quality.
The advertisers winning right now are running both, testing AI Max, and treating organic AI visibility as a paid strategy input.
The advertisers struggling are trying to apply 2020 playbooks to a 2025 landscape. Adapt the tactics. The fundamentals—reaching users with relevant offers at the right moment—haven't changed.
