May 27, 2025
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We knew it was coming: Google’s 2025 Marketing Live confirmed that AI search results will now include ads, changing the game for marketers. Google announced that its new AI Overviews (AI-generated search summaries) will now include Search and Shopping ads on desktop, and that the recently launched AI Mode in Google Search will also show ads. In practice, this means even an educational query (e.g. “Dogs on long flights”) might surface a paid “Carry-on Carrier for Dogs” ad within the AI summary.
These official changes confirm our earlier predictions: paid placement in AI search results before the end of 2025. In short, Google is expanding its monetization into generative AI search and users will see more sponsored content integrated into AI answers (just as some other AI search tools have hinted they will).
Contents
Explosive Growth of AI Search Tools and Shifting Traffic
User behavior is changing fast. ChatGPT and other AI assistants are drawing huge audiences: ChatGPT’s traffic rivals major sites. Similarweb reports that ChatGPT now ranks among the top global websites. In April 2025, it was the #5 most-visited site worldwide. By early 2025 ChatGPT was estimated to handle roughly 4–5% of all “search” queries globally – small compared to Google’s ~83%, but growing fast. Monthly visit data underscore this growth: ChatGPT’s site saw on the order of 5.2 billion visits in early 2025, whereas Perplexity AI reached ~160 million visits in March 2025. Crucially, Perplexity’s traffic is skyrocketing (+205% year-over-year), even if it still trails the giants.
| Platform | Monthly Visits (2025) | % Growth YoY | Market Share (Est. Search Queries) | Notes |
|---|---|---|---|---|
| Google.com | ~88 billion | ~+1.4% (stable) | ~83% | Core search traffic, stable but facing AI competition |
| ChatGPT | ~5.2 billion | ~+200% | ~4–5% | Now the #5 most-visited global website |
| Perplexity AI | ~160 million | +205% | ~0.3% | Rapid growth, but small compared to Google |
| Bing | ~1.2 billion (est.) | -5% | ~1.2% | Losing market share, some AI integration via Copilot |
Indeed, as generative AI became mainstream, organic search clicks have fallen sharply for many sites. Industry analyses (and case studies) show large drops in Google-driven traffic once answers are pulled directly into AI/zero-click results. Rand Fishkin’s SparkToro found that ~60% of Google searches now end without a click to any site. One SEO review notes that Google’s Search Generative Experience (SGE) features are causing 18–64% declines in organic clicks on informational queries.
Even major content hubs saw huge losses: e.g. HubSpot’s organic visits reportedly fell 75% after Google began surfacing AI answers. Publishers like Red Ventures and even Wikipedia have reported declining traffic, as AI answers satisfy user intent without clicks. In this new landscape, fewer visitors come from traditional SEO alone.
OpenAI’s Hardware Bet and Competitive Landscape
Meanwhile, OpenAI is doubling down on innovation: in May 2025 it agreed to acquire Jony Ive’s AI-hardware startup (io) for about $6.5 billion. Jony Ive (ex-Apple chief designer) and his team will now help design “AI-powered computers” and products. This move signals that OpenAI is exploring new physical interfaces for generative AI (perhaps dedicated assistants or smart devices) – potentially blurring the lines between mobile/computing and search. In a competitive sense, it means Google will face OpenAI not only in AI software but possibly in novel AI hardware/experiences. Businesses must watch these moves: new devices or interfaces could create additional channels where users seek answers (for example, an “AI tablet” or voice device running ChatGPT-like search).
Implications for Business Visibility and Investment
These trends are prompting a rethink of visibility strategies. With AI summaries and chatbots answering more questions, traditional SEO tactics alone may no longer bring the same traffic. Brands now need presence where AI finds them – e.g. being cited as a trusted source in AI answers. Our team and other AI SEO experts advise that having authoritative content across the web is key: AI Overviews rely on information from trusted sources, so building brand authority (via PR, guest posts, industry profiles, etc.) can pay off in AI search results.
In practical terms, businesses will likely shift budget toward: (a) ensuring their content can be “found” and cited by AI engines (e.g. structured data, in-depth answer content), and (b) new paid placements or ads within AI answers. Google’s new ad formats mean advertisers should consider allocating some ad spend to AI Mode/AI Overview ads in addition to classic Search ads.
Overall, companies should start by shoring up the fundamentals. We recommend a thorough homepage SEO audit as the first step. The homepage often serves as an indicator of a site’s overall SEO health. Issues here—such as broken links, missing metadata, slow speed, and poor mobile UX—can negatively impact the entire site’s performance and visibility in both traditional SEO and AI-driven search results. AI-powered audit tools (e.g. SERanking, Ahrefs, ScreamingFrog) can quickly flag such weaknesses. Fixing these foundational problems now will ensure your site can benefit from whatever traffic remains (and improve crawlability for AI bots).
AI SEO vs. Traditional SEO: Key Differences
AI-driven search optimization is emerging as a new discipline (“Generative Engine Optimization” or GEO). It differs from classic SEO in complexity, focus and metrics. In traditional SEO, the goal is to rank webpages on Google/Bing result pages; success is measured by click-throughs, impressions, bounce rate and other on-site engagement metrics. By contrast, AI/GEO optimization aims to get your content and brand cited or recommended in AI-generated answers (e.g. Google’s SGE or ChatGPT responses).
Key distinctions include:
| Aspect | Traditional SEO (Web Search) | AI/GEO SEO (AI-driven Search) |
|---|---|---|
| Focus/Target | Ranking in Google/Bing SERPs | Being included in AI-powered answer engines (SGE, Bing Chat, ChatGPT) |
| Metrics | CTR, bounce rate, session duration, search rank | “Citation” impressions and relevance in AI answers |
| Content Strategy | Broad keyword/content optimization; links and meta-data per page | Domain-specific, authority-building content; structured data and factual “sources” |
These differences make AI SEO more complex. Optimizing for AI answers may require new skills: crafting highly authoritative, semantically rich content, using structured markup, and even monitoring how AI models use your content as sources. It can be more costly, too, since you may need specialized tools (like AI graders for SERP features) or consulting. However, the business impact can be significant: a successful AI SEO strategy can yield brand exposure even without traditional clicks, by making your brand the answer. Meanwhile, ignoring AI SEO risks losing visibility on queries that users now turn into AI assistants.
In practice, both strategies will coexist. As one analysis notes, SEO and GEO (AI SEO) complement each other – traditional SEO still drives discoverable traffic, while GEO optimizes for the growing share of “answer-engine” queries. Savvy businesses will invest in a balanced approach to capture both click-driven traffic and brand signals in AI responses.
Actionable Recommendations
- Audit and fix fundamentals: Begin with your homepage and core pages. Use automated SEO audit tools to find and resolve broken links, missing meta tags, slow speeds, and mobile issues. Addressing these now prevents further loss as AI pulls more answers directly.
- Optimize content for AI: Update key pages and answer-style content. Incorporate comprehensive FAQs, long-form authoritative content, and structured data so AI engines can easily find and cite you. Xponent21’s guide to “rank in AI search results” emphasizes these tactics.
- Build authority and mentions: Increase your presence on reputable platforms. Guest posts, press releases, and industry profiles build the trust signals AI values (even if you don’t get direct traffic).
- Plan for AI ads: Prepare for new ad channels, including Search, Shopping, and Performance Max campaigns, which are automatically eligible for AI Overviews and AI Mode placements. Keep an eye on Google’s rollout (now on desktop) and experiment with AI-optimized budgets as formats expand.
- Monitor performance differently: Adapt analytics. Traditional SEO metrics (rankings, organic traffic) may fall; instead track “share of voice” in AI engines, citations received, and brand mention spikes as proxies for visibility.
In summary, AI-driven search is forcing a reassessment of visibility strategies. Google’s integration of ads into AI answers and the rapid user adoption of tools like ChatGPT mean businesses must diversify their SEO and advertising. By blending classic SEO audit and optimization with new AI-focused tactics, companies can navigate the evolving landscape of search and maintain strong digital presence in 2025 and beyond.
For further insights on AI SEO and digital strategy, explore additional articles on Xponent21.com. You’ll find detailed guidance on how to rank in AI search results, understand the impact of AI Mode on search visibility, and develop a content ecosystem that supports long-term digital growth. Each piece offers practical strategies for navigating the AI-driven future of search.
President & CEO at Xponent21
Will Melton, CEO of Xponent21 and consultant to global companies, brings nearly 20 years of business leadership in technology and marketing to his work. He is passionate about crafting innovative strategies that solve deep problems and drive organizations toward their goals. Will is the founder of AI Ready RVA and Richmond Water, is an podcast host for Channel RVA and serves on several charitable boards in Richmond, VA.
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