How AI Overviews Are Reshaping Google Click-Through Rates

Recent analyses indicate a significant decline in both organic and paid click-through rates (CTRs) on Google, with the introduction of AI Overviews playing a pivotal role. A study by Seer Interactive, examining approximately 10,000 informational keywords, revealed that organic CTRs dropped from 1.41% to 0.64% year-over-year when AI overviews were present. Interestingly, in the absence of AI Overviews, organic CTRs experienced an uptick. Paid CTRs also saw a decline, irrespective of AI Overview presence. However, brands featured within AI Overviews benefited from increased CTRs, with paid CTRs rising from 7.89% to 11% and organic CTRs from 0.74% to 1.02%.

Broader Trends in Search Advertising

The decline in CTRs isn't isolated to AI overviews. LocalIQ's 2024 search advertising benchmarks report highlighted a decrease in paid search advertising conversion rates across nearly all industries year-over-year. Concurrently, the cost of generating leads through search ads has risen, indicating that advertisers are investing more but receiving diminishing returns.

Industry-Specific CTR Benchmarks

Understanding industry-specific CTR benchmarks is crucial for advertisers aiming to evaluate their performance. According to data from First Page Sage, the average CTRs for various ad types in 2025 are as follows:

• Search Ads: Position 1: 2.2%; Position 2: 1.3%; Position 3: 0.9%; Position 4: 0.9%
• Local Search Ads: 5.1%
• Local Services Ads: 4.7%
• Product Listing Ads (PLA): Top 8: 1.1%; Mid-Page: 0.51%
• Display Ads: 0.089%
• Video Ads: Skippable: 0.74%; Non-skippable: 0.81%

These figures underscore the variability in CTRs across different ad formats and positions, emphasizing the importance of tailored strategies for each advertising channel.

The Rise of No-Click Searches

A significant factor contributing to declining CTRs is the increase in no-click searches. In 2024, 58.5% of Google searches in the U.S. resulted in no clicks, as users found answers directly on the search results page. This trend highlights the growing prominence of featured snippets and AI-generated answers, which provide immediate information, reducing the need for users to click through to external websites.

Strategies for Advertisers and Marketers

In light of these developments, businesses must adapt their digital marketing strategies to maintain and enhance engagement.

1. Optimize for AI Overviews: Ensure that your content is structured and authoritative to increase the likelihood of being featured in AI Overviews, thereby enhancing visibility.
2. Focus on High-Quality Content: Develop comprehensive and valuable content that addresses user intent, encouraging users to click through for more in-depth information. For guidance, check out our article on Mastering Content Strategy for AI-Driven Search in 2025.
3. Leverage Alternative Channels: Diversify traffic sources by investing in other marketing channels such as social media, email marketing, and partnerships to mitigate the impact of declining search CTRs. Video content is particularly gaining traction—especially with the rise in YouTube citations within Google's AI Overviews.
4. Monitor and Adapt: Continuously analyze performance metrics to identify trends and adjust strategies accordingly, ensuring responsiveness to the evolving digital landscape. Staying ahead means keeping up with developments like those outlined in Mastering SEO in 2025: Trends and Tactics for Success.

By implementing these strategies, businesses can navigate the challenges posed by declining CTRs and continue to achieve their marketing objectives.