AIO Ads: How to Approach Them Heading into Q4

Google’s AI Overview (AIO) feature is transforming how users interact with the SERP and how advertisers show up in it. With Q4 ramping up and AIO ads starting to play a role in the paid search ecosystem, we wanted to share JDM’s perspective on how this emerging placement works, how it’s impacting performance, and what we recommend heading into the busiest season of the year.

No Need for a Separate AIO Budget (Yet)

At this stage, there’s no need for a dedicated AIO budget – primarily because AIO is not a campaign type, it’s a placement, and it’s currently blended within Search. That means there’s no line item to directly allocate spend toward AI Overview. These campaign types are eligible for AIO placement:

• Broad Match Search
• Performance Max (PMax)
• AI Max campaigns
  
  

Our current stance is for these campaign types: let the system allocate naturally, while closely monitoring key performance metrics like CTR, CPC, and downstream conversions. Force-spending toward AIO isn’t an option (yet), but optimization opportunities within eligible campaigns certainly are.

AIO vs. Traditional Search Ads: Performance Trends

While Google doesn’t provide isolated AIO performance data, we’ve started to see performance trends emerge across Broad match and PMax that suggest how AIO is influencing results:

• CTR: Broad match CTRs dipped in May and June but have rebounded since.
• CPC: Broad match CPCs increased during the same time frame, while PMax CPCs briefly dropped and are now recovering.
  
  

In other words: AIO seems to introduce more volatility into Broad match campaigns, while PMax remains a more stable option during this transition.

How AIO Ads Work (and Look)

Even though AIO is a new SERP experience, the ads themselves are visually the same, standard headlines, descriptions, and sitelinks. The major differences lie in placement and context:

• Placement: AIO ads can appear above, below, or within the AI Overview content, but only one of these at a time.

• Eligibility: Only Broad match, AI Max, and PMax campaigns can serve in AIO.
• Context Shift: AIO placements feel more like being embedded in long-form content rather than the quick-scan SERP. This shifts user behavior and engagement patterns.
  
  

For marketers, this shift means engagement is more research-focused, with users reading summaries before considering ads. Messaging needs to match that mindset.

Our Recommendations for AIO Ads

To stand out in AIO placements, we’re coaching clients to adjust both their messaging and optimization strategies. Here’s what we recommend:

• Differentiate your messaging: Emphasize urgency, unique value propositions, or ultra-clear CTAs. The surrounding AI content is dense, and your ad needs to work hard to break through.
• Optimize for deeper-funnel events: AIO users are often in research mode. Let the algorithm prioritize quality conversions (not just top-funnel traffic).
  Lean into educational or problem-solving messaging that aligns with the intent behind AI-generated answers.

AI Overview placements are still in their early stages, and we expect continued evolution throughout Q4 and into 2026. For now, the key is to adapt, not overreact. Monitor closely. Optimize smartly. And lean into the campaigns that are already getting favored placement.

At JDM, we’re cautiously optimistic about where this is headed. We’re working with clients to stay flexible and ready to adapt as AI reshapes the search experience, one summary at a time.