It’s not news that AI is rewriting the rules of online search. But while most B2B marketers have been busy rethinking their organic strategy, paid search has been quietly drifting into dangerous territory.
We’ve just wrapped a global paid search campaign on Google Ads for a leading tech brand. When comparing the results from last year with the same campaign targeting & approach, we noticed it now costs more to get traffic – Cost-per-click were up 62% and Cost-per-conversion up by 46%. Click-through rates have halved even though impressions were up.
In better news, we can see a marginally better conversion rate which suggests the people who do click are better qualified. But at that price, they’d better be.
This prompted a deeper channel review and, looking at recent industry reports, it’s clear we’re not alone. The reality of zero-click searches struck us and clearly indicated this trend – PPC results are harder, and it costs more to get the same responses.
It’s not just this campaign. We’re seeing it in many places, and according to Search Engine Land, the introduction of Google’s AI Overviews is shrinking the real estate for traditional ads. Fewer slots. More competition. Less room to breathe.
Three forces are driving up the cost of Google Ads. First, there are simply fewer ad placements available, which means more advertisers are fighting over limited space. Second, Google’s AI-powered summaries (AI Overviews) are giving users quick answers directly on the results page, so fewer people are clicking through to websites. And third, users themselves are getting smarter; they know what they want, and they’re scrolling past the noise to find it which means fewer, but more deliberate, clicks.
So, what’s next for paid search ads?
Time to look again:
- Define why you are using paid search – branding or direct response? Measure and assess it appropriately
- Rethink your channels – Are you using Google because it works, or because it’s familiar?
- Shift your keyword mindset – Go long-tail. Go intent-led. Go where the real interest lies.
- Fix the funnel leaks – If your audience is more qualified, your landing pages need to be too.
- Join up your data – Connect CRM with campaigns to track what actually converts (not just who clicks). Refine your keyword efforts accordingly
Google still dominates even if the future of paid search may sound more like a chatbot than a search bar. We are excited to follow these two developments closely:
- ChatGPT: Ad formats are on the roadmap, likely to be introduced in 2026. Expect intent-rich targeting with serious personalisation.
- Perplexity.ai: Already testing “sponsored answers” that sit natively within AI results in the US.
These aren’t just new ad platforms. They are new ways of searching which are more conversational, more context-aware, more direct. That’s exactly why we’re guiding clients to optimise their sites for Generative Engine Optimisation (GEO) and making sure AI knows what you do, and who you do it for. Explore some of the best practices here on how to measure the AI search visibility for your brand.
What B2B marketers should do next:
- Audit your full search strategy – paid and organic
- Experiment outside of Google – LinkedIn, industry verticals, even AI-native tools
- Start structuring your content for GEO – no jargon, just clarity
- Keep looking ahead – the next ad platform might not even call itself one