It’s a fair question. We’re hearing it a lot from Australian SMEs. With Artificial Intelligence increasingly providing direct answers to search queries – often right within the Google search results page – is paying for Google Ads still a sensible investment? The short answer is, generally, yes. But it’s more nuanced than it used to be, and we need to analyse how we approach campaigns.
The rise of AI-powered ‘featured snippets’ and the Search Generative Experience (SGE) does mean fewer clicks to websites for some searches. However, this doesn’t invalidate Google Ads entirely. Here’s what we’re seeing:
- Branded Search Remains Crucial: People actively searching *for your business name* are highly likely to click through to your website, regardless of an AI answer. Protecting your brand terms with Google Ads is still vital to control the narrative and ensure customers land on *your* site, not a competitor’s.
- AI Doesn’t Replace All Intent: AI excels at informational queries (“what is the best coffee machine?”). But transactional queries (“buy coffee machine online”) still overwhelmingly lead to website clicks. Focus your ad spend on keywords with strong commercial intent.
- Ads Drive Visibility Even Without Clicks: Even if someone doesn’t click, your ad appearing alongside the AI answer builds brand awareness. Repeated exposure increases familiarity and trust, influencing future purchasing decisions. This is a valuable, though harder-to-measure, benefit.
- Refine Your Ad Copy & Extensions: We’re seeing increased importance in compelling ad copy that highlights unique selling propositions and special offers. Use ad extensions – sitelinks, callouts, price extensions – to provide more information and entice clicks, even in the presence of an AI summary.
The key is to shift our focus from simply chasing clicks to understanding the *entire* customer journey. We need to move beyond vanity metrics and concentrate on return on ad spend (ROAS). This means robust conversion tracking, careful keyword selection, and a willingness to adapt campaigns based on performance data. We’re also advising clients to explore Performance Max campaigns, allowing Google’s AI to optimise across multiple channels, potentially offsetting any click reduction on search.
Don’t pause Google Ads entirely. Instead, let’s review your current campaigns, refine your targeting, and optimise for profitability in this evolving landscape. A strategic, data-driven approach will ensure you continue to generate a positive return on your investment, even as AI reshapes the search experience.
