If your Google Ads cost per acquisition has crept up over the last 12 months even though your campaigns look healthy, there is a good chance AI Overviews are quietly eating your top-of-funnel traffic. The Google search results page in 2026 looks fundamentally different to what it did in 2022, and most advertisers have not adjusted their strategy to match.
I have audited dozens of Adelaide accounts in the last six months where the data tells the same story: informational and research-stage clicks have collapsed, while bottom-of-funnel commercial intent clicks are more competitive than ever. If you do not understand what is happening, you cannot fix it.
What AI Overviews actually do to the SERP
AI Overviews (the AI-generated summaries that now appear at the top of many Google searches) push paid ads further down the page on informational queries. The user can read a synthesised answer drawn from multiple sources without ever clicking a single result, paid or organic.
In our internal benchmarks across Adelaide service business accounts:
- Informational query CTR for paid ads has dropped 18 to 35 percent since AI Overviews rolled out broadly
- Commercial intent query CTR is largely unchanged or slightly higher
- Cost per click on bottom-funnel terms (“book”, “emergency”, “near me”, “quote”, “price”) has risen 15 to 40 percent because everyone is fighting over them
- Branded search clicks are still strong because users with intent type the brand directly
The takeaway: the middle of the funnel is being eaten by AI. The bottom is more valuable than ever and more expensive.
Why this is happening
Google’s AI Overviews are best at answering definitional, comparative and “how does X work” questions. Searches like “how much does emergency plumbing cost” or “what causes a leaking roof” used to drive clicks to advertisers running broad-match campaigns. Now those users get a 200-word summary at the top of the page and feel informed enough to delay a decision (or skip the click entirely).
The users still clicking through after seeing an AI Overview are typically further down the funnel. They have already absorbed the basics and are now comparing providers or ready to book. That is good news if you target them right, and bad news if your campaigns are still optimised for top-funnel education clicks.
Five strategic responses for 2026
1. Tighten match types and shift budget to commercial intent
Broad match is now a faster way to lose money than at any point in the last decade. Phrase match and exact match for high-intent commercial keywords (“book”, “hire”, “book emergency”, “quote”, “local”, “near me”, “24 hour”, “open now”) should now own the majority of your spend. Educational and informational keywords belong on your SEO content, not your ad budget.
2. Rewrite ad copy for action, not awareness
Old playbook: “Learn about X. Free guide. Click to find out more.” Dead. The AI Overview already taught them. New playbook: ad copy that signals immediate action and trust.
- Lead with price transparency where you can (“$149 callout”, “From $89”, “Fixed quote”)
- Push availability (“Same day”, “24/7”, “Available now”, “Book today”)
- Include trust markers (“Licensed”, “5-star reviewed”, “15 years local”)
- Use a single, specific CTA per ad (“Book online”, “Call now”, “Get a quote”)
I have rewritten copy for plumbing, electrical and legal accounts in Adelaide using this approach and seen CTR jump 20 to 60 percent within two weeks.
3. Switch to value-based bidding
If you are still on Maximise Clicks or even Target CPA, you are leaving meat on the bone. Move to Maximise Conversion Value or Target ROAS as soon as you have enough conversion data. The reason: not all leads are created equal anymore. The lead that arrives after reading an AI Overview and still clicked through is significantly more likely to convert than a top-funnel browse-and-bounce lead. Value-based bidding tells Google to prioritise high-quality conversions, not just any conversion.
If you have not configured offline conversion tracking (so Google knows which leads actually became customers), this is the single highest-leverage thing you can fix. The mechanics of how Smart Bidding uses this data are covered in how Google Ads actually work in 2026.
4. Double down on lower-funnel formats
Performance Max, Demand Gen and Shopping campaigns are now structurally more important than they were two years ago. They reach buyers across YouTube, Discover, Gmail and the Search Network without relying solely on the search results page where AI Overviews dominate. Local service ads (LSAs) are also worth their weight in gold for tradies and home services because they sit ABOVE everything (including AI Overviews) and only charge per lead.
Ecommerce stores, retailers and trades selling products should be treating Shopping and PMax as core channels, not test budgets.
5. Use vertical-specific landing pages built to convert AI-educated users
Users arriving from a search where they have already seen an AI Overview do not need you to re-explain the basics. They need proof, pricing transparency and an easy next step. Your landing page should:
- Open with a specific outcome statement and price signal
- Skip the generic “What is X?” section (AI already handled it)
- Front-load social proof (Google reviews count, video testimonials)
- Have one primary CTA repeated 3+ times
- Include click-to-call as the dominant mobile action
If you sell to a specific vertical, vertical-specific landing pages outperform generic service pages by 2 to 4x. Browse our industry pages for examples of how we structure them for trades, professional services and local businesses.
The numbers I am seeing in 2026
For Adelaide service businesses I run campaigns for, the new normal looks like:
- Average CPC for high-intent commercial keywords: $9 to $28 depending on industry
- Conversion rate on tightly-targeted lower-funnel campaigns: 8 to 14 percent
- Cost per qualified lead (after offline conversion tracking): $45 to $140 for trades, $80 to $260 for professional services
Want to model what this looks like for your industry and budget? Use the Google Ads calculator to ballpark realistic numbers before you spend a dollar.
Bottom line
AI Overviews are not killing Google Ads. They are killing lazy Google Ads. Accounts that still rely on broad match, awareness-stage copy, generic landing pages and click-based bidding are getting hammered. Accounts that have shifted to commercial intent, value-based bidding and conversion-focused landing pages are doing fine (better than fine, in many cases).
If your account has not been audited since AI Overviews became dominant, you are almost certainly leaking money. See how I structure modern campaigns, or book a free strategy call and I will walk through your account with you. Flat-rate pricing, no juniors, no lock-in. Or call 0403 454 199.
Want to put this into action?
Book a free strategy call. We'll audit your current marketing and give you a clear action plan tailored to your business.