Google's AI Overviews will decimate your business - here's what you need to do

Did you know that organic click-through rates plummet by a staggering 54.6% when Google adds an AI overview to a search query? It's a shocking statistic that caught my attention, and I'm sure it's got you reeling too. 😲

Tracy McDonald from Seer Interactive conducted a thorough study, analyzing 10,000 keywords with informational intent in the top 20 positions. The findings were clear: engagement took a significant hit. To ensure the accuracy of these results, Tracy utilized multiple data sources, including Google Ads for paid click-through rates, Google Search Console for organic CTR, and ZipTie AIO data to track the presence of an AI overview.

By the way, did you catch the news? Google Search has just rolled out an AI upgrade that might actually come in handy—and it's free!

The data was split into two groups. One group included queries with an AI overview, and the other group did not. From my own observations, Tracy's results are spot on. 🧠

Interestingly, Google's latest 10-K filing mentioned a decline in Google Network impressions by 11%. While Google doesn't explicitly blame AI overviews, it's reasonable to think that if users get their answers from the overview and don't click through to a site, they're also missing out on the ads.

In this article, we're diving into the challenges Google faces, how they impact you directly, and the urgent steps you need to take before it's too late.

If you're new around here, I'm Lester, but you can call me Les. 👋

I've founded a company with a successful exit, I'm the executive chairman of several DTC brands, and I've won awards for my performance marketing efforts.

If you're into data-driven marketing insights, don't miss out on my free newsletter, No Fluff Just Facts.

Also, have you seen Reddit's new Google-powered AI search tool? It's making finding answers faster than ever!

I share the latest marketing trends and AI innovations you need to keep an eye on. This isn't a doomsday article about Google; they'll be just fine. But if your business depends on organic traffic for revenue, you need to pay attention. What's merely annoying for Google could be a game-changer for us, you know what I mean?

Let's get straight to the point and talk about what's happening and what you need to do ASAP. 🤓☝️

Understanding the Landscape

To get you up to speed, an AI overview (AIO) is when Google provides what it thinks is the best answer to your question using an AI-generated summary right at the top of the search results. No scrolling, no clicking, and no need to visit a site.

AI search engines like Perplexity and platforms like TikTok are changing the way users interact with the internet. 😔

Users want quick answers, pushing Google to change how it operates—even if it risks its core business. Yikes.

By the way, Google Workspace has introduced a bunch of new AI features that can streamline your daily workflow.

The internet is free and packed with useful information because blogs earn money through banner ads. That ad revenue covers the costs, so users don't have to pay. It's easy to forget that someone is paying the bill even if the content feels free.

Running a website isn't cheap. Paying staff to create content and hosting it online adds up quickly, and advertising gets a bad rap for covering those costs. 😩

AIO also affects everyday people who share valuable information for free online and are compensated through ads on their websites.

This shift in behavior could fundamentally change the internet as we know it. It might force content creators to put their information behind paywalls, turning the internet into a pay-to-play model. 👎

Microsoft is offering free AI skills training for all, and it's not too late to sign up!

Imagine having to pay for every answer, from product reviews to fixing a sink. It sounds extreme, but consider how many blogs now require subscriptions. While some websites paywall content for various reasons, the underlying issue remains the same. With fewer people seeing banner ads, users will end up paying more, and AIO is accelerating this trend.

Your Next Move

That 54.6% drop in CTR when an AIO is present is huge, and I believe it's just the beginning unless something changes. As Google competes with other AI search engines and users turn to social media for answers, it poses a unique challenge for those relying on organic traffic. Our next move is crucial.

"Experts" often suggest two strategies. The first is to focus more on bottom-of-funnel keywords rather than top-of-funnel ones. 🙄

Google Lens has become one of my favorite AI apps, and I use it in 7 different ways every day.

Top-of-funnel search terms like "How to [Blank]," "What is [Blank]," and "Why does [Blank]" are being eaten up by AI.

Instead, experts recommend focusing on bottom-of-funnel search terms such as "Buy [Product]," "[Service] pricing," and "[Service] near me."

This is a good strategy, but it's only a matter of time before AI starts targeting these terms too.

"Experts" also advocate for LLM Engine Optimization (LEO), which is essentially SEO for AI search. Instead of optimizing for traditional search engines like Google, you tailor your content for AI tools.

Here are some ways to do this:

1. Write like a trusted expert: LLMs are trained on content from high-authority, high-trust sources. If your content is credible and clear, you're already ahead.
2. Be clear: LLMs don't like vague language. Use plain language, break things down, answer questions directly, and structure your content so AI can easily find what it needs.
3. Use Q&A formatting: Structure your content with question-style headings followed by clear, direct answers to increase your chances of being picked up by AI.
4. Stick to facts and cite sources: LLMs rely on content supported by facts or well-researched information. Citing sources, showing data, or explaining your reasoning clearly boosts your trustworthiness.
5. Use clean content structures: Well-structured HTML, like clear headings, lists, and semantic tags, helps LLMs parse your site better.
6. Get mentioned by trusted sources: If other high-quality sources reference you, it boosts your content's credibility, just like backlinks help in SEO.

In many ways, your content is now formatted for machines rather than people.

I'd love to tell you exactly how I feel about this approach, but my editor, Aly, won't let me swear. So, instead of using my favorite four-letter words to describe LEO, I'll say this:

LEO might be an interesting short-term solution, but it doesn't solve the problem of not owning our audience. Pivoting to LEO, regardless of what the "experts" or "agencies" say, is like putting a bandaid on a broken arm.

I've been in this industry long enough to know that if it's not AIO threatening our traffic source, it'll be an update named after an animal or a privacy policy change.

The Only Way Forward

So, the only way forward is to own your audience. As business professionals, we can't keep putting it off. 📌

When I say own your audience, I mean more than just having a newsletter or SMS list. It's about building an authentic connection, like creators do with their followers. Show the human side of your business, not just cold, robotic messages. Talk to people in a way that feels real.

The best AI search engines, including Google and Perplexity, are worth checking out.

Brands that are winning today feel more approachable. They build community by talking with their audience, not at them. They involve people in decisions, share behind-the-scenes moments, and make their audience feel part of the process.

This shift toward approachability might seem subtle, but it has a real impact. Studies show that 82% of people are more likely to trust a company when its senior execs are active on social, and 77% are more likely to buy when the CEO is visible online. 🚨

As we move into this new era of the internet, I will focus on three things:

1. Growing my audience via my newsletter: The goal is to build a connection with the audience and own that relationship without relying on algorithms.
2. Getting more social: Until now, I haven't been much of a "social media guy," but that will change this year as I put myself out there more. My platforms of choice are Instagram, LinkedIn, and YouTube. There are more channels like Facebook and TikTok, but I'm just one person lol. I'll expand to new channels as I get more comfortable.
3. Helping my audience: Ultimately, business is about solving problems. While I think I'm hilariously entertaining, no one joins my newsletter because they find me mildly funny. They sign up because they have a problem and believe I can help them solve it. So, I will lean into that "problem solving" as the internet evolves.

I'm building my audience so I don't have to rely on platforms I can't control. 🤓☝️

Once you've built an audience, it's like having a firehose. You can direct it to a piece of content, an email, or your site and drive attention exactly where you want it.

ChatGPT has officially replaced Google Search for me—here's why.

Having direct access to people who know, like, and trust you allows you to solve real problems, which naturally leads to revenue. It's a win-win. The key difference is the personal connection.

Your next move is simple. Own your audience and build a real relationship with them. People do business with people. If you do it right, users won't need to search for a solution; they'll already know you're the one who can help. 🤝

My Two Cents

At the risk of sounding repetitive, own your audience.

I promise Google will be fine, but AI could be detrimental to us, so we need to act sooner rather than later.

😇 Hope this helps.

P.S. If you want more easy and helpful AI tips and tricks, sign up for my free newsletter, No Fluff Just Facts. Plus, you'll get a behind-the-scenes look as I pay my penance for not creating content ten years ago.

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