How integration of ads into Google AI Overviews will shake up digital advertising game

New Delhi: Google has started incorporating advertisements into its AI-generated search overviews, initially rolling out the feature in the United States before a global expansion.

According to digital marketing experts, this move will push advertisers to place a greater emphasis on content marketing, improve engagement and quality of traffic, increase competition as more websites vie for attention, and potentially drive up advertising costs.

Shradha Agarwal, Co-Founder and Global CEO of Grapes, believes that the new AI Overview ad can be considered a masterstroke by Google, which brings about the confluence of AI-powered advertising and searching. 

She told BestMediaInfo.com that the combination comes with a lot of potential to revolutionise the advertising sector, allowing the brands to build strong relationships with their target audience.

As per Agarwal, “a powerful generative and predictive algorithm allows AI Overview ads to significantly aid in targeted advertising. This will empower brands to promote their products before consumers and also help them monetise the ads.” 

But to ensure the effective utilisation of AI, “it is crucial to start from the basics, i.e., focusing on landing page content and correctly using communication signals to provide accurate data,” said Sajid Shaikh, Group Account Manager (Media) at SoCheers.

Vishal Agrahari, Paid Media AVP, BC Webwise, highlighted that brands will have to ensure the relevance of the ad placed beside the AI Overview search results and its effectiveness—by being able to target advertisements based on the AI-generated response. 

While integrating ads with AI Overview will increase engagement, agencies will need to consider cultural nuances when crafting ads to ensure they resonate with Indian audiences. This might involve localised content and language adaptations to enhance relevance, Shaikh added. 

According to Aman Nagpal, Founder & Director of Get Marketed, ads integrated into AI overviews will drive digital agencies to evolve their tactics, encouraging a more refined cross-channel approach that aligns with both AI-driven insights and the broader digital marketing funnel.

He also said that with AI providing overviews, digital agencies may need to shift their focus to creating high-quality, engaging content that complements AI responses. “This shift could lead to a greater emphasis on content marketing strategies that effectively drive organic traffic,” Shaikh (SoCheers) iterated. 

Neelesh Pednekar, Co-Founder & Head Of Digital Media at Social Pill, emphasised that integrating ads with AI Overview could increase the quality of traffic. He explained, “Users who do click through after reading an AI overview are likely to be more informed and have higher intent, potentially leading to better conversion rates.”

A very important point that Agrahari of BC WebWise made is that this could lead to an increase in advertising prices with more websites fighting for attention. 

Given the Indian market has its own unique opportunities and challenges, there will be a need to make some necessary accommodations for navigating the specific market efficiently. As per Agarwal (Grapes), “where it can amplify the visibility of the brands among the potential customers, it also eases searching for them by generating compiled results in the same place. However, considering that the country exhibits diverse language options, arrangements need to be made for supporting different vernaculars, enabling consumers to search in their own native language.” 

According to SoCheers’ Shaikh,  agencies will need to consider cultural nuances when crafting ads to ensure they resonate with Indian audiences. This might involve localised content and language adaptations to enhance relevance,” he added. 

Pednekar added, “There will likely be a greater emphasis on featured snippet optimisation, structured data, and creating content that complements rather than competes with AI overviews.”

The Indian market is seeing a surge in e-commerce and mobile app usage. Therefore, Shaikh also suggested that this means that integrating ads with AI overviews could drive traffic not just to websites but also to apps.

Although AI-powered answers seek to offer thorough and pertinent information, advertisements may include prejudices or financial interests, Agrahari (BC WebWise) warned. “When sponsored material appears alongside organic search results, users may find it difficult to distinguish between the two, particularly if the ads are extremely relevant to their inquiry. If the advertisements are viewed as obtrusive or deceptive, this could result in a decrease in customer’s trust in Google search results and information authenticity,” he explained.

And there’s more to this. Pednekar (Social Pill) highlighted the below as some obvious challenges that could impact the industry:

Digital divide: This feature could potentially widen the gap between digital-savvy users and those with limited digital access or skills.

Local business impact: Small businesses without strong digital presences might struggle if users rely heavily on AI overviews.”

“With AI overviews providing quick answers, there's a risk that users might not scroll down to the traditional search results or ads. This could potentially decrease organic traffic to websites and impact the effectiveness of certain types of ads,” he said. 

Nagpal (GetMarketed) added to this same note by saying: “As users increasingly rely on AI answers, fewer may scroll through traditional organic results, prompting agencies to reallocate budgets toward paid advertising. These ads, positioned after AI-generated responses, offer brands an opportunity to reinforce their presence and guide users toward conversion. This will make the relationship between SEO and paid ads even more crucial in crafting effective marketing strategies.”

In the evolving landscape where advertisements are now placed alongside AI-driven search results, marketers must adapt their strategies to stay competitive. Agrahari from BC WebWise outlined key ways to succeed in this new ecosystem:

1. Enhanced content quality: To stand out against AI-generated content, marketers must focus on creating material that dives deeper than surface-level details, offering valuable insights that AI may overlook.

2. Diversified marketing channels: Relying solely on Google Search could be risky. Agencies should explore other avenues like email marketing, content marketing, and social media to effectively reach their audience.

3. AI-driven marketing: Leveraging AI tools for tasks like keyword research, content optimisation, and audience segmentation will be crucial for staying ahead in the digital marketing race.

4. Cross-channel attribution: Tracking user behaviour across multiple platforms is essential to evaluate the success of campaigns and optimise budgets effectively.

Throwing light on how advertising will evolve with the implementation of ads in AI Overview, Agrahari said that the brands will have to emphasise more on branding. He explained, “As direct response ads might become less effective, we could see a rise in brand awareness campaigns to ensure visibility in this new landscape.”