Key Takeaways

• Google AI Overviews are causing CTR drops up to 34.5% for traditional organic listings, with non-branded keywords experiencing the most significant impact (19.98% decline).
• Answer Engine Optimization (AEO) is becoming essential as Gartner predicts 25% of organic traffic will shift to AI chatbots by 2026.
• Branded keywords actually see an 18.68% CTR boost when they trigger AI Overviews, suggesting a strategic advantage for established brands.
• Companies using specialized AI optimization strategies can maintain visibility across traditional search and emerging AI platforms simultaneously.
• The revenue growth despite the traffic decline phenomenon indicates a fundamental shift in how users discover and engage with businesses online.

CTR Drops Up to 34.5%: How Google AI Overviews Are Reshaping Search Results

The search landscape is undergoing its most dramatic transformation in years, and the numbers prove it.

Two major studies from industry leaders Ahrefs and Amsive have quantified the impact of Google’s AI Overviews on click-through rates, and the results are concerning for businesses relying on organic search traffic. DigitalBiz’s analysis of AI search patterns confirms these findings while offering strategies to adapt to this new reality.

Ahrefs found a staggering 34.5% drop in position 1 CTR when AI Overviews were present, while Amsive reported an average 15.49% CTR decrease across all positions. Some scenarios saw drops as severe as 37.04% when AI Overviews appeared alongside featured snippets, essentially creating a double zero-click scenario.

Understanding the AI Search Impact on Click-Through Rates

1. Position 1 CTR Drops 34.5% with AI Overviews

The coveted position 1 ranking, long considered the holy grail of SEO, is losing its effectiveness when AI Overviews appear. Ahrefs’ analysis of 300,000 keywords revealed this dramatic decline, representing a significant threat to businesses that have invested heavily in achieving top rankings.

What makes this particularly concerning is that these drops occurred within just months of AI Overviews rolling out. As the feature becomes more prevalent and sophisticated, the impact could intensify further.

2. Non-Branded Keywords Hit Hardest (19.98% Decline)

Not all keywords are affected equally by AI Overviews. Non-branded terms – the type that drive new customer acquisition – are both more likely to trigger AI Overviews and suffer the largest CTR drops. Amsive’s research found these keywords experienced a 19.98% CTR decline.

For businesses, this means losing nearly one-fifth of potential discovery traffic – precisely the type of traffic that introduces new customers to your brand. The factors contributing to this higher impact include:

• Non-branded keywords often have informational intent, which AI Overviews specifically target
• These queries typically have more available authoritative sources for AI to synthesize
• Users searching non-branded terms are more satisfied with comprehensive overview answers
• The average length of non-branded searches makes them ideal for AI summary treatment

3. Lower Rankings Face 27% CTR Loss

Websites not ranking in the top 3 positions are experiencing an even more dramatic impact from AI Overviews. Amsive’s data shows a 27.04% CTR drop for keywords ranking below position 3.

This compounds the challenge for smaller businesses or those in competitive niches who were already struggling to generate clicks from lower positions. With organic results pushed further down the page, visibility becomes increasingly difficult.

4. The Branded Keyword Advantage

The silver lining in this data is that branded keywords rarely trigger AI Overviews (only 4.79% of the time), and when they do, they actually receive an 18.68% CTR boost. This suggests that brand recognition and loyalty are becoming even more valuable in the age of AI search.

This advantage likely stems from users’ higher trust and intent when searching for specific brands, plus the fact that brand-specific information often requires visiting the official website rather than relying on AI summaries.

What Is Answer Engine Optimization (AEO)?

Answer Engine Optimization (AEO) is the strategic practice of improving your brand’s visibility within AI-powered search experiences like ChatGPT, Perplexity AI, and Microsoft Copilot. Unlike traditional SEO that focuses on ranking in search engine results pages (SERPs), AEO aims to get your brand mentioned or cited within AI-generated responses to user queries.

Think of it this way: SEO gets users to your website, while AEO gets your brand information to users even if they never visit your site.

Common AEO tactics include:

• Creating highly specific, authoritative content with detailed data points
• Implementing comprehensive schema markup to provide structured information
• Building quality backlinks from reputable sources that AI systems recognize as authoritative
• Establishing presence on platforms that feed into AI training data
• Optimizing content to directly answer specific questions in a comprehensive manner

AEO vs. Traditional SEO: Key Differences

1. Platform Focus

SEO primarily targets traditional search engines like Google, Bing, and DuckDuckGo. These platforms display results in familiar formats: title, URL, and description. AEO, on the other hand, focuses on AI-powered answer engines that generate conversational, paragraph-form responses without necessarily displaying a list of websites.

This fundamental difference requires different optimization approaches. While Google wants to show users the best websites, ChatGPT aims to provide the most helpful answers—with or without citing specific sources.

2. User Targeting Methods

Traditional SEO targets keywords—specific phrases users type into search engines. AEO targets questions and conversational queries that users might ask an AI assistant. These queries are typically longer, more conversational, and often in question format.

For example:

• SEO keyword: “best restaurants iceland”
• AEO query: “what are some good restaurants in Iceland for traditional food?”
• AEO query: “Can you recommend restaurants in Reykjavik that serve authentic Icelandic cuisine under $50 per person?”

This shift requires content that directly answers specific questions rather than simply containing relevant keywords.

3. Performance Metrics

SEO and AEO success are measured through different key performance indicators:

• SEO Metrics:
• Keyword rankings
• Organic traffic volume
• Impressions in search results
• Click-through rates
• Conversion rates from organic visitors
• AEO Metrics:
• Brand mentions in AI responses
• Citations as a specific source
• Referral traffic from AI platforms
• Citation frequency for specific topics
• Competitive mention ratio compared to industry peers

Tracking these metrics requires different tools and approaches than traditional SEO analytics, with some businesses developing custom tracking solutions to monitor AI search performance.

4. Strategic Approach

While SEO and AEO share some common practices, their strategic approaches differ significantly:

SEO often focuses on comprehensive coverage of topics to rank for multiple related keywords, while AEO prioritizes extreme specificity and authoritativeness to be cited as the definitive source. Where SEO values internal linking for site structure and user journey, AEO emphasizes external validation and third-party recognition.

Another key difference: SEO content often needs to balance search optimization with conversion goals, whereas AEO content must prioritize being the most informative, accurate resource on a specific topic—even if that means being extremely technical or detailed.

Why Your Business Can’t Ignore AI Search

1. 400M+ Weekly OpenAI Users

The scale of AI search adoption is staggering. Over 400 million people use OpenAI products weekly, with ChatGPT becoming one of the fastest-growing consumer applications in history. This isn’t a niche technology—it’s rapidly becoming a primary information source for hundreds of millions of users.

Additionally, Bing’s mobile app downloads grew 4x after integrating AI capabilities, demonstrating how AI features are driving user adoption across platforms. When Microsoft Copilot launched as the default experience in Windows 11, it immediately exposed hundreds of millions more users to AI search capabilities.

2. 25% of Organic Traffic Shifting to AI by 2026

Gartner’s prediction that 25% of traditional organic search traffic will shift to AI chatbots and other virtual agents by 2026 should be a wake-up call for any business relying on digital visibility. This isn’t a minor trend—it’s a fundamental change in how users discover information and businesses online.

We’re already seeing evidence of this shift. After ChatGPT’s launch, Stack Overflow saw visits decrease by 14% in March 2023 and then by 18% in April 2023. Users are finding answers through AI rather than traditional search and Q&A sites, with specific technical and informational queries being particularly affected.

3. Revenue Growth Despite Traffic Decline

Perhaps most telling is how companies are growing revenue despite traffic declines. NerdWallet grew its revenue by more than 35% in 2024 while its monthly website traffic decreased by 20%.

This pattern—revenue up, traffic down—indicates that user behavior is changing, not disappearing. People aren’t buying less; they’re discovering and researching differently before making purchase decisions. The traditional funnel where users find your website, browse, and convert is being compressed as AI tools provide more direct paths to purchase.

4. First-Mover Advantage

Businesses that adapt to AI search early gain a significant competitive advantage. As with any digital transformation, early adopters set standards and establish authority that can be difficult for competitors to overcome later.

Implementing AEO strategies now positions your business to maintain visibility as user behavior continues to evolve toward AI-powered search experiences. Companies that wait until traffic significantly declines will find themselves playing catch-up in an increasingly competitive space.

5 Practical Strategies to Optimize for AI Search Engines

1. On-Site Optimization Tactics

The foundation of effective AEO starts with making your content discoverable and understandable to AI systems:

• Ensure robots.txt allows both search and AI crawlers to access your content
• Create and maintain an XML sitemap with regular updates
• Implement proper heading structure (H1, H2, H3) to signify content hierarchy
• Use descriptive, keyword-rich URLs that clearly indicate topic focus
• Structure content with clear sections addressing different aspects of topics

Schema markup deserves special attention as it helps AI engines understand the meaning and context of your content. Implement relevant schema types like Article, FAQ, HowTo, and Product to provide structured data that AI systems can easily interpret and cite. For example, a restaurant might implement the FoodEstablishment schema with menu items, pricing, and operating hours to increase the likelihood of being mentioned in dining recommendations.

2. Off-Site Optimization Essentials

External signals heavily influence how AI engines perceive your brand’s authority:

• Focus on earning backlinks from authoritative industry publications that AI systems recognize as credible
• Create linkable assets like original research or comprehensive guides that naturally attract citations
• Claim and optimize business listings across all relevant platforms with consistent NAP (Name, Address, Phone) information
• Actively solicit and respond to customer reviews, as user-generated content influences AI perception of your brand

What’s particularly noteworthy is that 25% of the highest-quality sites in ChatGPT’s dataset have excluded themselves from future training. This creates a significant opportunity for businesses willing to make their authoritative content available to AI systems, potentially filling gaps left by competitors who have opted out.

3. Content Enhancement for AI Visibility

AI engines value content that provides clear, specific information that directly answers user questions:

Create comprehensive, authoritative content that covers topics in depth rather than surface-level overviews. Include specific data points, statistics, and examples that demonstrate expertise and make your content more citation-worthy. Structure information in a way that directly addresses common questions in your industry.

Consider the difference between these two content approaches:

• Standard content: “Our widgets are high-quality and affordable.”
• AI-optimized content: “Our Model X5 widgets are manufactured using 6061-T6 aluminum, undergo 7-point quality testing, and are priced 15% below the industry average of $127 per unit based on our January 2025 competitive analysis.”

The second example provides specific, citable information that AI engines can confidently include in responses.

4. Local and Social Presence Management

AI engines frequently pull information from business listings and social profiles when answering location-based or brand-specific queries:

• Maintain consistent information across Google Business Profile, Yelp, industry directories, and social platforms
• Regularly publish content on social channels that demonstrates expertise and thought leadership
• Engage with industry conversations and maintain active profiles on platforms relevant to your audience
• Monitor mentions across the web and address inaccuracies quickly

For local businesses, this aspect of AEO is particularly critical. When someone asks an AI assistant about the “best Thai restaurant near me,” having optimized local listings with accurate information, positive reviews, and clear service descriptions significantly increases your chances of being recommended.

5. Setting Up AEO Performance Tracking

Without established tools for measuring AEO success, businesses need creative approaches to tracking performance:

Create custom segments in your analytics platform to identify traffic potentially influenced by AI mentions. Regularly test target queries across different AI platforms and document when and how your brand is mentioned. Compare citation rates with competitors to benchmark your performance.

Some organizations are developing custom dashboards that track:

• Brand mention frequency in AI responses
• Sentiment analysis of those mentions
• Topic clusters where the brand is most frequently cited
• Conversion rates from referral traffic originating from AI platforms
• Correlation between AI mentions and branded search volume

3 Biggest AEO Challenges (And How to Overcome Them)

1. Measuring Impact Without Established Tools

Unlike SEO with its wealth of measurement tools, AEO performance tracking remains largely experimental.

Solutions:

• Develop custom tracking methodologies specific to your business goals
• Monitor increases in direct traffic that correlate with AI platform usage
• Track branded search volume as an indicator of AI exposure
• Conduct regular manual testing of target queries across multiple AI platforms
• Survey customers on discovery channels to identify AI-influenced conversions

2. Securing Internal Buy-In for New Initiatives

Getting organizational support for AEO investment can be challenging when results are harder to quantify than traditional SEO.

Solutions:

• Present compelling industry data on traffic shifts to AI platforms
• Start with small, measurable pilot projects focused on high-value topics
• Demonstrate competitive examples where brands are succeeding with AEO
• Calculate potential revenue impact if predicted traffic shifts occur
• Position AEO as an extension of existing content and SEO strategies

3. Balancing Resources Between SEO and AEO

Organizations struggle to determine how to allocate limited resources between traditional SEO and emerging AEO priorities.

Solutions:

• Identify overlapping activities that benefit both SEO and AEO
• Prioritize content that serves dual purposes for maximum efficiency
• Focus initial AEO efforts on high-visibility, high-conversion topics
• Repurpose existing high-performing content with AEO enhancements
• Consider specialized partners for AEO-specific tasks while maintaining SEO in-house

Turn AI Search Disruption Into Your Competitive Edge

The shift toward AI-powered search represents a fundamental change in how users discover and interact with information online. While many businesses see this as a threat to their hard-won search visibility, forward-thinking organizations recognize it as an opportunity to connect with audiences in new ways.

By implementing AEO alongside your existing SEO efforts, you ensure your brand remains visible regardless of how users choose to search. The companies that establish authority in AI engines now will have a significant competitive advantage as this technology continues to evolve and gain adoption.

Don’t wait until the traffic declines signal that change is needed. Start incorporating these AEO strategies today to position your business for continued visibility and growth in the age of AI search. If you need professional assistance, DigitalBiz can help with specialized optimization strategies that ensure visibility across both traditional and AI-powered platforms.