How Google’s AI Overviews Could Threaten Your Business: What You Need to Know Now

In a digital landscape

In this article, we’ll break down a study by Tracy McDonald from Seer Interactive, explore the effects of Google’s AI overviews, and discuss practical steps you can take to safeguard your business against the disruption caused by AI search technologies.

The Study: AI Overviews and Organic CTR Drop

A comprehensive study by Tracy McDonald analyzed 10,000 keywords with informational intent, ranking in the top 20 search positions. What the research found was alarming: when an AI overview appeared at the top of the search results, organic click-through rates plummeted by more than half—by 54.6%. This could severely impact businesses that depend on organic traffic to generate revenue.

The research drew data from multiple sources, including Google Ads (for paid CTR), Google Search Console (for organic CTR), and ZipTie AIO data to track the presence of AI overviews. This combination of data sources confirms a sharp decline in user engagement when an AI summary answers the query directly on the search results page, eliminating the need for users to click through to your site.

Google’s recent 10-K filing mentions a drop in network impressions by 11%. While the company doesn’t explicitly tie this to AI overviews, the correlation is clear: when a user gets the answer directly from the search result, they are less likely to visit a site—and consequently, they won’t see any ads.

The Changing Search Landscape: AI Overviews and Search Behavior

Google has been pushed to adapt as users increasingly seek quicker answers to their questions. The rise of AI-driven search engines like Perplexity and platforms like TikTok, where users expect fast, concise answers, is forcing Google to rethink its traditional search model. An AI overview is an attempt to answer users’ queries without requiring them to click through to external sites, which threatens the entire ecosystem of organic traffic-driven businesses.

The problem lies in the fact that the internet, despite being a free resource, is largely funded by advertising. Banner ads and sponsored content are what make the internet “free” for users, with website owners receiving compensation for their content through ad impressions. But with AI summaries providing immediate answers to questions, users no longer need to visit these sites, which undermines the ad revenue model and disrupts the business model for creators.

Moreover, this shift may lead to a pay-to-play internet, where users must subscribe to read content that is no longer accessible for free. As fewer people see ads, businesses may have to rely more heavily on paid subscriptions or premium content models to survive.

What Should You Do? Adapt or Get Left Behind

So, how do you protect your business in a world where AI overviews might dominate the search landscape? Here are a few strategies you can implement right now:

1. Shift Focus to Bottom-of-Funnel Keywords

Many experts recommend focusing on bottom-of-funnel keywords, which are closer to a purchase decision (e.g., “buy [product]” or “[service] near me”). These keywords are less likely to be cannibalized by AI overviews because they focus on transactional intent. However, this strategy may only work temporarily, as AI could eventually target these terms too.

2. Embrace LLM Engine Optimization (LEO)

LEO is the new frontier in search engine optimization, but instead of optimizing for Google’s traditional algorithm, you’re optimizing for AI-driven search engines. This involves structuring your content to appeal to AI tools by making your content clear, credible, and factual. Use Q&A formats, provide authoritative sources, and focus on plain language.

3. Build a Direct Relationship with Your Audience

The key to long-term success in a world dominated by AI is to own your audience. Develop authentic, meaningful connections with your users through newsletters, SMS lists, and direct communication. Brands that have strong relationships with their audiences—built on trust and genuine interaction—will thrive.

What Undercode Says: Navigating the Future of Digital Marketing

The shift toward AI-generated overviews signals a major change in how we interact with the internet. For businesses, the immediate consequence is clear: reliance on organic traffic, especially from Google, is no longer a sustainable long-term strategy. AI’s ability to provide instant answers means fewer people will click through to your website, affecting both organic CTR and ad revenue.

However, Google’s move is not entirely unexpected. The company is evolving to compete with other AI-powered platforms, but the challenge for businesses is how to adapt quickly enough to avoid losing their audience. For many marketers, this signals a larger trend toward a digital environment where algorithms and AI dominate the interaction between businesses and consumers.

This environment will require businesses to rethink their strategies. Bottom-of-funnel keywords and LEO are short-term fixes at best. The more sustainable approach lies in building a direct relationship with your audience—one that doesn’t rely on Google’s algorithmic whims. Brands that thrive in the AI-powered future will be the ones that invest in community building, establish trust, and focus on solving their audience’s real problems.

Rather than chasing Google’s algorithmic changes, businesses should prioritize building an audience that is loyal, engaged, and connected to their brand. Social media and direct communication channels are key here. Studies show that people are more likely to trust and buy from companies that seem approachable and human, especially when the leaders are active and visible online. This is a critical time for businesses to reconsider how they build relationships with their customers and prioritize authenticity over cold, algorithm-driven tactics.

Fact Checker Results

Impact on Organic Traffic: Tracy McDonald’s research shows a 54.6% drop in CTR with AI overviews, a significant decline that businesses should be aware of.
Ad Revenue Model at Risk: As users get answers directly from AI, the traditional model of earning ad revenue from traffic is under threat.
Urgency of Audience Ownership: The call for businesses to own their audience has never been more pressing, as dependence on platforms like Google becomes increasingly risky.

The digital world is changing, and staying ahead of the curve will require more than just adapting to the latest algorithm update. It’s time to focus on building relationships and securing your audience.