Unlocking the New Search Experience – How Google’s AI Overviews Are Reshaping Digital Advertising

A New Chapter in Google Search Experience

Google’s latest innovation in AI-powered search, known as AI Overviews, marks a pivotal shift in how users interact with search results. These AI-generated summaries, formerly called Search Generative Experience (SGE), aim to deliver real-time answers by compiling information from top-ranking websites.

For businesses and advertisers, this raises a new question: Where do Google ads appear in AI Overviews? As we head deeper into 2025, understanding this update is essential for shaping your digital advertising strategy and staying competitive in the evolving search environment.

What Are Google AI Overviews?

Google AI Overviews are intelligent summaries presented at the top of search results. Instead of relying on a traditional list of blue links, the AI synthesizes answers in paragraph form, drawing from multiple web sources using advanced natural language processing via the Gemini AI model.

This shift not only enhances the user search experience but also redefines how businesses are discovered through SEO optimization and PPC advertising.

Where Do Google Ads Appear in AI Overviews?

In response to advertiser concerns, Google has clarified that ads in AI Overviews may appear in three distinct placements:

  • Above the AI summary,
  • Below the AI-generated content,
  • Within the AI module itself, in a marked, dedicated ad slot.

Importantly, ads will not appear in more than one location at the same time to prevent clutter and confusion.

Transparency and Intent-Based Placement

According to Google, all sponsored content in AI Overviews is:

  • Clearly labeled as “Sponsored” or “Ad”,
  • Contextually aligned with the search query,
  • Integrated without disrupting the flow of AI-generated results.

This reinforces Google’s commitment to ethical advertising while maintaining user trust.

What This Means for Digital Advertisers

The implementation of AI in search results significantly changes how brands approach both search engine marketing (SEM) and organic visibility.

1. Organic Results Are Pushed Down

As AI Overviews dominate above-the-fold space, traditional organic results are relegated further down. Marketers must now focus on getting cited within the AI summary or securing prime ad placement nearby.

2. New Ad Placement Dynamics

With ad slots appearing directly within or near AI-generated content, there’s a renewed emphasis on ad relevance and contextual alignment. This could mean adjusting your Google Ads bidding strategies based on where your ads appear in the AI layout.

3. Intent-Based Advertising Is Crucial

Rather than targeting simple keywords, advertisers should prioritize semantic search optimization and natural language queries that trigger AI Overviews. This aligns ads more effectively with the user’s search intent.

How to Optimize Ads for AI Overviews

To stay competitive in this new landscape, your team needs to implement a forward-thinking AI search advertising strategy. Here’s how:

✅ Optimize for Conversational Keywords

Include natural language queries and voice-search-like phrases in your campaigns. Tools like Google's "People Also Ask" and AI-assisted keyword research platforms can help uncover the phrasing users now rely on in the age of AI-powered search.

✅ Use Schema Markup

Make your content AI-digestible with structured data. Schema helps Google better understand your content, increasing the chances of your website being cited in AI Overviews.

✅ Refine Ad Copy for Contextual Fit

Craft ad creatives that mirror user intent. Short, engaging headlines and concise descriptions that match the query's tone are more likely to be pulled into these AI summaries or seen in adjacent slots.

✅ Track AI-Specific Ad Performance

Use updated Google Ads performance reports to assess how your ads are performing when placed in or around AI Overviews. This data is crucial to understanding the evolving behavior of search users.

What This Means for SEO Professionals

The arrival of Google’s AI in search results demands collaboration between SEO experts and paid media teams. Here’s what to focus on:

  • Ensure authoritative content: Publish original, well-cited information that AI is likely to pull from.
  • Add schema and FAQs: These improve crawlability and positioning in both AI Overviews and traditional results.
  • Align content with AI triggers: Integrate questions and structured answers into your blog posts and landing pages to increase your visibility in generative search.

The result? A dual presence—organically within AI responses and through context-aware ad placement—that increases brand exposure.

My Final Thoughts

Google AI Overviews are rewriting the rules of visibility in digital search. While this advancement enhances the user experience, it also places new demands on marketers to rethink their ad strategy and SEO fundamentals. The businesses that win in this environment will be those who embrace semantic search, AI alignment, and strategic ad placement.

If you’ve relied solely on traditional listings or broad keyword targeting, now’s the time to pivot. The search game in 2025 is intelligent, conversational, and experience-driven.


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