Your Ads in AI Overviews: What Changed and How to Adapt

If you manage PPC campaigns, you have probably spent the last year watching AI Overviews take over the top of Google Search and wondering one thing: where do my ads actually go now? The answer is more nuanced than Google's official documentation suggests — and it matters a lot for your click-through rates, cost structure, and overall Search Ads strategy.

Google Ads can now appear above, below, or within AI Overviews. But placement is not random. It depends on geography, language, campaign type, query intent, and relevance signals that shift constantly. This post breaks down exactly how Google Ads AI Overviews ad placement works in 2026, what it means for your CTR, and what you need to change in your campaigns right now.

How AI Overviews Changed the Search Results Page

AI Overviews are Google's AI-generated answers that now dominate the top of search results for a majority of informational queries. Unlike the old featured snippets, these are synthesized responses — paragraphs of text, sometimes with images and links — that attempt to answer the user's question without requiring a click.

For advertisers, this is a structural shift. The traditional SERP had a predictable layout: ads at the top, organic results below, maybe a knowledge panel on the right. AI Overviews blew that up. Now the AI summary can push everything — ads included — further down the page, or it can integrate sponsored results directly into the conversational experience.

The key data point: AI Overviews dominate informational searches. Queries like "how does broad match work" or "what is Performance Max" will almost always trigger an AI Overview. Transactional queries — "buy running shoes" or "best CRM pricing" — trigger them less consistently. This distinction is the foundation of every strategic adjustment covered in this post.

Takeaway: The SERP layout is no longer fixed. AI Overviews create a dynamic results page where ad position depends on query type, not just your bid.

Where Google Ads Actually Appear Relative to AI Overviews

Google has rolled out three distinct ad placement zones around AI Overviews, and understanding each one is essential for managing expectations around visibility and performance.

Above AI Overviews. On high-commercial-intent queries, Google still places traditional Search Ads above the AI Overview block. This is the premium position — the user sees your ad before they ever reach the AI-generated summary. These placements behave similarly to the classic top-of-page ads, and they tend to maintain strong CTR because the user hasn't yet received an AI-generated answer.

Below AI Overviews. For queries where the AI Overview takes the primary answer position, ads can appear immediately below the summary. Think of this as the new "top of organic" — it's the first commercial content the user sees after reading Google's AI answer. CTR here is typically lower than above-overview placements, but still meaningful for users whose question wasn't fully answered by the AI.

Within AI Overviews. This is the newest and most significant development. Google has begun integrating sponsored results directly inside the AI Overview block itself, marked with a "Sponsored" label. These in-overview ads blend into the conversational answer, appearing as recommended products or services within the AI-generated text. Early data from Search Engine Land suggests these placements can deliver higher engagement than below-overview positions because users are actively reading the content.

Not all campaigns are eligible for all three placements. Eligibility depends on your campaign type, targeting, and the specific query context. Shopping campaigns and Product Listing Ads have seen the earliest integration into in-overview placements, while standard text ads are more commonly placed above or below.

Takeaway: Your ads are not stuck in one position. The three-zone model means you need to understand which zone your campaigns are likely to land in — and optimize accordingly.

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What Determines Your Ad Placement in AI Overviews

Placement in or around AI Overviews is not controlled by a single lever. Google uses a combination of factors that PPC managers need to understand — because they differ from traditional ad rank mechanics.

Geography and language. AI Overviews availability and ad integration vary significantly by market. The U.S. and UK see the most aggressive AI Overview ad placements. Markets in Latin America, Southeast Asia, and parts of Europe are still in earlier rollout stages. If you run international campaigns, expect different ad-AI Overview dynamics in each market. For a deeper look at this topic, check out our guide on AI Overviews geographic optimization.

Campaign type. Shopping campaigns, Performance Max, and Search campaigns each interact with AI Overviews differently. Performance Max campaigns — especially those with strong asset groups — are more frequently pulled into in-overview placements. Standard Search campaigns tend to appear above or below. If you are running AI Max Search campaigns, Google's system has more flexibility to match your ads with conversational queries that trigger Overviews.

Relevance signals. Google's AI evaluates whether your ad is genuinely relevant to the conversational context of the Overview. This goes beyond keyword matching. Your landing page content, ad copy, and historical quality score all feed into this relevance assessment. Ads that align closely with the query intent expressed in the Overview are more likely to appear within it rather than being pushed below.

Query intent classification. Google's intent detection determines whether a query is informational, navigational, or transactional — and this classification drives whether an AI Overview appears at all, and where ads fit around it. Transactional queries still prioritize ad placement. Informational queries prioritize the AI answer, with ads playing a secondary role.

Takeaway: Optimize for relevance first. Geography and campaign structure determine eligibility, but relevance is what gets your ad into the highest-value placement zones.

The CTR Impact: What the Data Actually Shows

The question every PPC manager is asking: are AI Overviews killing my click-through rates? The honest answer is: it depends entirely on your industry and query mix.

For informational queries, the CTR impact on ads is significant. When an AI Overview fully answers a user's question, the incentive to click on an ad drops sharply. Research from ALM Corp and other industry analysts shows CTR declines of 15-30% on queries where AI Overviews provide comprehensive answers. If your campaigns rely heavily on top-of-funnel informational keywords, you are likely already seeing this.

For transactional and high-intent commercial queries, the story is different. Search Ads remain the premium placement for users ready to buy, compare, or sign up. AI Overviews are less likely to fully satisfy these queries because the user needs to take action, not just get information. CTR on these queries has remained relatively stable — and in some cases, the within-overview ad placement is actually delivering higher engagement than the old top-of-page position.

The industry variation is real. E-commerce and SaaS advertisers report less CTR erosion because their target queries tend to be transactional. Content publishers, lead-gen businesses targeting educational queries, and B2B companies running awareness campaigns have felt the most pain.

Here is what the data suggests for different query types:

High-intent transactional (buy, pricing, sign up): CTR stable or slightly improved with in-overview placements
Comparison and evaluation (best, vs, review): Moderate CTR decline of 10-15%, offset by users still needing to click for details
Informational and educational (how to, what is, guide): CTR decline of 20-30%, with AI Overviews answering the query directly
Navigational (brand name searches): Minimal impact, as AI Overviews rarely dominate these

Takeaway: The broad CTR numbers hide important segmentation. Audit your query reports by intent type — the impact on your account depends on your keyword mix, not industry averages.

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Why You Must Abandon the Broad Approach

The biggest strategic mistake PPC managers are making in 2026 is continuing to run broad, top-of-funnel keyword strategies as if AI Overviews don't exist. That approach is now actively losing money.

Here is the logic: AI Overviews dominate informational searches. If you are bidding on broad informational terms — "what is retargeting," "how does Google Ads work," "digital marketing tips" — you are paying for impressions that increasingly land below an AI answer that satisfies the user before they ever see your ad. The math doesn't work anymore.

The shift requires a fundamental change in how you think about your Google Ads strategy for AI search results. Instead of casting a wide net across the funnel, you need to concentrate budget on queries where the user has demonstrated buy intent — where AI Overviews either don't appear or where your ad can appear within the Overview as a relevant solution.

This means narrowing your broad match strategy significantly. Broad match still has a role, but it should be paired with tight audience signals and Smart Bidding strategies that prioritize conversion value. The days of broad match driving cheap top-of-funnel awareness clicks are over. AI Overviews ate that traffic.

Practical steps to execute the shift:

Audit your search terms report for informational queries. Any query that starts with "how," "what," "why," or "guide" is a candidate for reduction or exclusion.
Segment campaigns by intent tier. Create separate campaigns for transactional keywords (buy, pricing, demo, free trial) and comparison keywords (best, vs, alternative). Pause or reduce budget on pure informational campaigns.
Use audience layering aggressively. Combine keyword targeting with in-market audiences and remarketing lists to ensure you're reaching users with demonstrated purchase intent, even on broader terms.
Monitor placement reports. Google Ads reporting now shows whether your impressions appeared above, below, or within AI Overviews. Use this data to identify which keywords are consistently landing in low-CTR positions and adjust bids accordingly.

Takeaway: Broad is dead for informational queries. Refocus your budget on transactional and high-intent keywords where Search Ads still command attention and action.

Adapting Your Campaign Structure for Conversational Search

AI Overviews don't just affect where your ads appear — they change how users interact with search. Queries are becoming longer, more conversational, and more specific. Google's AI encourages this by offering follow-up question prompts within the Overview experience.

For advertisers, this means your ad copy and landing pages need to match a new type of search behavior. Users are no longer typing three-word keyword phrases. They are asking complete questions: "What's the best CRM for a 50-person sales team under $100/month?" Your ads need to be specific enough to match this level of detail.

Responsive Search Ads (RSAs) become even more critical in this environment. Google's AI matches your ad headlines and descriptions to the conversational context of the query. The more diverse and specific your asset combinations, the more likely your ad will be deemed relevant enough to appear within or above an AI Overview.

Landing page alignment is equally important. If your ad matches a specific conversational query but your landing page is a generic product page, Google's relevance assessment will push your ad to a lower-value placement. Create landing pages that directly answer the questions users are asking — with pricing, comparisons, and specifics visible immediately.

Consider these structural changes:

Expand RSA asset variety to cover specific use cases, price points, and comparison angles
Build dedicated landing pages for high-value query clusters that trigger AI Overviews
Use campaign-level negative keywords to block informational queries from your transactional campaigns
Test Performance Max with refined audience signals to improve eligibility for in-overview placements

Takeaway: Conversational search demands conversational ads and hyper-relevant landing pages. Generic campaigns will lose visibility in the AI Overview era.

Measuring Success in the AI Overview Landscape

Traditional PPC metrics need reinterpretation when AI Overviews are part of the equation. Here are the adjustments to make in your reporting:

Impression share by placement. Google now provides data on where your impressions appear relative to AI Overviews. Track this weekly. If your above-overview impression share is declining, it could mean your relevance scores are dropping or that more queries in your targeting set are triggering Overviews.

CTR segmented by query intent. Stop looking at account-level CTR as a single number. Segment by intent tier. Your transactional CTR should remain strong. If your overall CTR is declining, it is likely being dragged down by informational keywords — which is a signal to cut, not a signal that your campaigns are failing.

Conversion rate by placement zone. In-overview ads may show lower CTR than above-overview ads, but monitor conversion rates closely. Early data from several industries — as noted by analysts at MentorCruise and other PPC communities — suggests that users who click within-overview ads convert at higher rates because they have already consumed contextual information before clicking.

Cost per acquisition trends. As AI Overviews reduce clicks on informational queries, your CPA on those terms will rise. This is the mathematical inevitability of lower CTR at similar bid levels. Use this data to justify shifting budget away from informational terms rather than trying to bid your way to visibility.

Takeaway: Update your reporting framework. Placement-level data and intent-segmented CTR are now essential metrics for understanding Search Ads performance in AI search results.

Conclusion: The Search Ads Playbook for AI-Powered Search

Google Ads AI Overviews ad placement in 2026 is not the death of Search advertising — it is its evolution. Ads now live in a three-zone system around AI Overviews, and your placement depends on geography, campaign type, relevance, and query intent. The advertisers who adapt will maintain strong performance. The ones who don't will watch CTR erode and CPA rise while blaming "the algorithm."

The playbook is clear: abandon broad informational strategies, concentrate on transactional and high-intent queries where sponsored results in AI Overviews carry genuine value, structure your campaigns for conversational search behavior, and measure success with placement-aware metrics.

Search Ads remain the highest-intent advertising format in digital marketing. AI Overviews didn't change that. They just raised the bar for who gets to show up — and where.

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Google Ads AI Overviews: Where Your Ads Appear in 2026