Nigel, who manages our technical team, and I were discussing over coffee this morning how much Google has changed since we started in digital marketing. Back then, getting on the first page of Google meant understanding a handful of ranking factors and making sure your content ticked all the right boxes. Fast forward to today, and Google has just rolled out one of its biggest changes yet – AI Overviews, which launched globally across more than 100 countries including Australia and New Zealand in October 2024[1].

For those of you who haven’t seen them yet, AI Overviews are Google’s latest attempt to answer your search queries directly in the results page. Think of it as having a really smart research assistant who reads through multiple websites and gives you a concise summary of what you need to know. Sounds fantastic for users, right? But what does this mean for Kiwi businesses trying to get found online?

The Good, The Bad, and The Numbers

Let’s not sugar-coat it – the data shows some concerning trends. According to recent studies, websites are seeing organic click-through rates drop from 2.94% to 0.84% when AI Overviews appear[14]. That’s a significant decrease in potential visitors to your site.

The impact is substantial across the board:

  • Search volume has increased 6x due to AI[9]
  • There’s been a 60% decrease in average click-through rates[9]
  • Websites are experiencing a 30% reduction in organic traffic[9]
  • Only 2.2% of total impressions show both ads and AI Overviews[14]

But before you start considering a career change, there’s more to the story. Research shows some interesting patterns in how AI Overviews appear:

  • They show up in approximately 47% of analysed keywords[7]
  • They appear in 59% of informational queries[7]
  • 75% of links in AI Overviews come from positions 12 or higher in search results[7]
  • Shopping ads appear above AI Overviews 80% of the time[3]

What Does This Mean for Your Business?

If you’re running a business here in New Zealand, you might be wondering what all this means for your digital marketing strategy. Here’s what the data suggests:

  1. Local Still Wins: “Near Me” searches and location-specific queries remain crucial focus areas for optimisation[17].
  1. Quality Over Quantity: Out of 18 million indexed domains, only 274,000 domains appear in AI Overviews[3]. This suggests Google’s AI is highly selective about which sources it cites.
  1. Think Transaction, Not Just Information: While informational queries are being affected, experts recommend optimising for transactional and commercial content[17].

What Should You Do Now?

Based on research and expert recommendations, here are some practical steps you can take:

  1. Review Your Content Strategy: Focus on creating step-by-step, process-oriented content using natural language and a personalised style[15].
  1. Enhance Your Expertise: AI Overviews cite 5-6 different websites on average[3], and 98% of cited URLs appear in the top 100 organic results[3].
  1. Customise Your Ad Strategy: With paid search showing different patterns (CTR dropping from 21.27% to 9.87% with AI Overviews[14]), you might need to adjust your paid strategy.

Looking Ahead to 2025

Industry experts predict that search will “change profoundly” in the coming year[22]. We can expect:

  • AI becoming embedded in core marketing operations[22]
  • Increased focus on consumer-focused AI[22]
  • Enhanced integration with Google’s Gemini[21]

The Silver Lining

While there are challenges, research indicates there are also opportunities:

  • Increased diversity of website visits[4]
  • Better engagement for detailed enquiries[4]
  • Enhanced targeting capabilities[5]
  • Improved enquiry relevancy[5]

What’s Next?

Google’s AI Overviews are here to stay, and they’re likely to evolve rapidly over the coming months. The key is to stay adaptable and focus on what matters – creating genuine value for your customers while keeping an eye on the data and trends.

If you’re wondering how these changes might affect your specific business, or if you’d like help adapting your digital strategy, give us a call. We’re keeping a close eye on these developments and helping our clients navigate this new landscape.

Contact us today if you’d like to learn more about how your business can thrive in this new era of AI-powered search.

References

[1] Mashable – Google’s AI Overview rolling out worldwide 

[3] Skai Blog – How Google’s AI Overview Is Transforming the SERP

[4] Walker Sands – Understanding the Impact of Google AI Overviews

[5] Touché Media – Google AI Overviews: Impact on the Search Experience

[7] Brandastic – Google AI Overviews and Its Impact on SEO

[9] Redefine Your Marketing – The AI Overview: Impact on Organic Performance

[14] Seer Interactive – How AI Overviews Are Impacting CTR

[15] Search Engine Land – Google AI Overviews: Everything You Need to Know

[17] Bounteous – Understanding Google’s AI Overview Impact

[21] CMS Wire – Google AI Overviews: Reshaping Search and SEO Strategies

[22] Think with Google – Marketing Strategy for 2025