Is PPC dying with AI search? How do we adapt our paid strategy when AI answers eliminate clicks?

PPC isn’t dying, but the playbook is changing dramatically. Here’s what our data shows:

The impact is real:

But here’s what’s working:

1. Performance Max campaigns - Google’s AI Max for Search shows +14% conversions at same CPA by expanding beyond traditional keyword lists

2. High-intent focus - Transactional queries (“buy,” “order,” “near me”) still convert because AI can’t complete purchases

3. Shopping ads within AI - Google now shows shopping ads directly in AI Overviews for product queries

4. Diversification - Our clients shifted 15-20% budget to LinkedIn, retail media, and YouTube with positive results

The strategic shift:

PPC used to capture demand across the funnel. Now it’s most effective at bottom-funnel conversion. Top and mid-funnel awareness? That’s where GEO and content matter more.

Agency perspective across 50+ accounts:

What we’re seeing:

• B2B accounts: 25-35% CTR decline on informational queries
• E-commerce: 15-20% CTR decline, but conversion rates holding
• Local services: Minimal impact (AI Overviews less prevalent)

What’s working:

1. Audience-first bidding - Shift from keyword-first to audience-first targeting
2. Smart bidding + AI - Let Google’s AI optimize, but tightly control audiences
3. Landing page optimization - AI-referred clicks have different behavior patterns
4. Video + Shopping - Formats that AI Overviews haven’t disrupted as much

The new metrics:

We now track:

• Share of voice in AI Overviews (is our brand mentioned?)
• PPC + AI combined visibility
• Multi-touch attribution including AI touchpoints

The uncomfortable truth:

Some accounts are seeing PPC ROAS decline that can’t be fixed with optimization. The answer isn’t better PPC; it’s channel diversification.

E-commerce perspective:

Our adaptation:

We shifted strategy 6 months ago. Results:

Before (PPC-heavy):

• 80% budget on search ads
• CTR: 2.8%
• ROAS: 3.2x

After (hybrid approach):

• 55% search ads (high-intent only)
• 25% shopping + Performance Max
• 20% content + GEO investment

Results:

• Search CTR: 3.4% (only targeting high-intent)
• ROAS: 4.1x (fewer, better clicks)
• AI citations: +340% over 6 months
• Brand search volume: +18%

Key insight:

We stopped trying to compete for informational queries with PPC. We let AI and content handle awareness. PPC now only targets people ready to buy.

Specific tactics:

• Negative keyword: Questions (“what,” “how,” “why”)
• Focus: Transactional (“buy,” “order,” “price,” “discount”)
• Landing pages: Optimized for both PPC and AI referrals

Some insight on where Google is heading:

AI Overview ad integration:

Google announced at Marketing Live that ads will appear within AI Overviews. Early tests show:

• Shopping ads embedded in product-related AI responses
• Search ads appearing with “ad voice” introduction
• Performance Max automatically optimizing for AI placements

What this means:

The ad placement isn’t going away; it’s moving. Instead of fighting AI Overviews, your ads will be inside them.

Early data on AI-integrated ads:

• CTR comparable to traditional top-of-page
• Higher qualification (users already got context from AI)
• Conversion rates slightly higher (more informed clicks)

What to do now:

1. Enable Performance Max if not already
2. Ensure product feeds are comprehensive
3. Build strong organic presence (AI uses this context)
4. Test AI Max for Search campaigns

The irony:

Google’s AI is both the problem (reducing traditional ad visibility) and the solution (new ad placements within AI). Adapt or get left behind.

Executive perspective on budget allocation:

How I think about PPC vs. GEO:

PPC is like renting a billboard. You pay, you’re visible, you stop paying, you disappear.

GEO/Content is like buying real estate. Takes longer, requires investment, but you build equity.

Our budget evolution:

The strategic rationale:

We’re not abandoning PPC. We’re rebalancing to match how customers actually discover us:

• 40% discover through traditional search (still need PPC)
• 35% discover through AI tools (need GEO)
• 25% discover through social/referrals (other digital)

The hard truth:

If you’re 100% dependent on PPC, you’re exposed. Diversification isn’t optional anymore.

This thread has been incredibly helpful. Here’s my action plan:

Immediate changes:

1. Audit keywords for AI impact - Identify queries where AI Overviews are killing CTR
2. Shift informational queries to negative - Stop competing where we can’t win
3. Double down on transactional - Focus PPC on purchase-intent queries
4. Enable Performance Max - Get access to AI-integrated placements

Budget reallocation:

Proposing to leadership:

• Reduce search ads budget by 20%
• Reallocate 15% to content/GEO
• Reallocate 5% to Performance Max testing

New metrics to track:

• Combined PPC + AI visibility score
• Cost per acquisition across channels
• Brand search volume trend (leading indicator)

The pitch to my boss:

“PPC isn’t dying, but it’s becoming less efficient for the full funnel. We need to maintain PPC for conversions while building AI visibility for awareness. This hybrid approach protects us as search behavior continues shifting.”

Monitoring:

Using Am I Cited to track when we appear in AI answers and correlate with PPC performance changes.

Thanks everyone for the strategic clarity!