In May 2024, Google rolled out a new generative AI feature called AI Overview, which is powered by Google’s Gemini AI model. Designed to enhance the search experience, AI Overview helps users find answers faster and more efficiently by summarizing relevant content directly in the Search Engine Results Page (SERP). As it stands currently, users cannot opt out of it. The only ads eligible to show in the AI Overview are AI-powered Search ads, Shopping, and Performance Max campaigns, which eliminates strictly regulated industries, such as the pharmaceutical industry. At Butler/Till, we see this shift as a chance to explore new, innovative approaches that keep our clients ahead of the curve and drive meaningful performance.
Seen impact:
After months of consistent performance, starting on September 24th, 2024, daily high value action (HVA) performance began to trend downward on a healthcare clients Google campaign. Any other potential reasons for these dips were ruled out. We confirmed that starting in September, our healthcare client’s website started showing up as a source in the AI overview feature (source: SEMrush). When comparing the three months prior and the AI Overview effect on our campaigns (July, August, September), the following three months (October, November, December), performance saw the following negative average monthly volume trends:
Research and question-based queries are 32% more likely to prompt the AI Overview and therefore push ads further down the SERP (source: Seer Interactive). The previously top-performing unbranded keywords matched to these types of queries and saw a 51% decrease in HVA volume when comparing the same timeframe.
Our plan:
To combat the effects of the AI Overview, we have been launching Experiments (A/B tests) within our Google Ads account on these campaigns. While it is still early to draw final conclusions, these tests are laying the groundwork for smarter, data-driven decisions. With ongoing core updates from Google, we are closely monitoring both campaign performance and industry trends—ensuring we stay ahead of changes and continue delivering strong results for our clients.
Why it matters:
As Google continues to evolve its search experience with features like AI Overview, it is more important than ever to stay vigilant and proactive. These types of changes can have a significant and often immediate impact on campaign performance—especially in regulated industries like healthcare. By closely tracking platform updates, testing new strategies, and leaning into data-driven decision-making, we can ensure campaigns are continually optimized and delivering the highest possible value. At Butler/Till, our approach is rooted in adaptability, so regardless of how the digital landscape shifts, we are ready to help our clients stay ahead and keep performance on track.
