Google’s AI Mode Poised to Reshape the Digital Ad Landscape

Marketers grapple with collapsing click-through rates and new monetization models as AI-generated search summaries disrupt conventional advertising.

Jul 30, 2025

∙ Paid

The Turning Point: AI Overviews and Falling CTRs

Google’s AI Overviews, launched last year, are accelerating the shift toward zero-click results by answering user queries directly without the need to click external links. In response, advertisers are seeing a staggering 79% decline in click-through rates (CTR) to publisher sites. This decline has prompted alarm across digital marketing circles.

Yesterday Google rolled out its “most powerful” AI search with AI Mode in the UK.

Enter AI Mode: A Chatbot Layer Built on Gemini

Google has introduced AI Mode, powered by its Gemini large language models. This feature offers a conversational, ChatGPT-like experience embedded directly in Search. Users now receive synthesised, narrative responses to complex queries often without seeing a traditional …

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