“Search” Is No Longer Just “Search”

For decades, Google Search has been the gateway to digital advertising. Paid Search Ads were the lifeblood of small and medium-sized businesses looking to capture attention and generate leads. But 2025 has made it clear: the search landscape is evolving rapidly!

With AI Overviews (AIO) on Google and the rise of Answer Engines like ChatGPT, Perplexity, and others, the way people discover, research, and make decisions online is changing. Instead of typing a query and scanning a list of blue links, users are increasingly getting direct, conversational answers at the top of the page – or in some cases, without ever seeing a traditional SERP (Search Engine Results Page) at all.

This shift poses a critical question: What happens to Paid Advertising in a world where answers come first, and ads have no home (yet)?

Where We Are Now: Google Ads in AI Overviews

Google has already begun weaving Sponsored Ads into AI Overviews. In early 2025, ads started appearing inside the AI-generated answer box on desktop searches. Unlike traditional ads that sit above or below the organic results, these ads are contextually integrated, giving businesses a chance to appear directly within the AI summary itself.

For SMBs, that means two things:

  1. Visibility is still possible – but competition is tighter since there are fewer placements inside AIO compared to the open SERP.
  2. Relevance rules the day – ads must be hyper-aligned to user intent and conversational context to earn placement.

Interesting STAT: Currently, Google AI Overviews only show Ads 7-9% of the time.

The Bigger Shift: Answer Engines Without Ads (For Now)

While Google has started monetizing AI Overviews, independent Answer Engines – like ChatGPT, Perplexity, and even emerging voice-first platforms – currently don’t serve traditional ads at all. These platforms pull from a mix of web content, APIs, and data sources to deliver immediate answers, bypassing both organic listings and paid placements.

Right now, this creates a potential blind spot for businesses:

  • High-intent users are getting answers without ever encountering your website or ads.
  • Zero-click experiences reduce opportunities for SMBs to earn visibility through clicks alone.

But here’s the thing – history tells us monetization will come.

Just as Google once went from “no ads” to Ads being its core revenue engine, these AI-native platforms are already experimenting with sponsored answers, premium placement, and brand partnerships.

Sneak Peek Into the Future of Paid Ads in Answer Engines (Sprout’s 2 Cents on This Subject)

The writing is on the wall: Answer Engines will monetize – it’s not a matter of if, but when. Here’s how it’s likely to play out:

  1. Sponsored Answers
    Instead of an ad block, businesses may pay to be cited or featured as part of the AI’s generated answer. Example: “Best plumber near me” could include a sponsored mention of a local business directly within the answer text.
  2. Preferred Source Partnerships
    Brands might be able to sponsor or prioritize their content/data feeds as a trusted source for AI models, guaranteeing higher visibility when relevant answers are generated.
  3. Conversational Commerce
    Imagine a scenario where you ask an AI, “What’s the best wellness shot for immunity?” and the AI not only recommends products but also provides a buy button powered by a paid partnership.
  4. Local Lead Generation in Voice & Chat
    Service-based SMBs may see new forms of pay-per-lead within Answer Engines – like sponsored call buttons, quote requests, or booking integrations inside the AI experience.

What SMBs Should Do Right Now

While paid ads in independent Answer Engines aren’t here yet, smart SMBs can prepare now:

  • Invest in AEO (Answer Engine Optimization): Structure content in clear, Q&A formats so your business naturally appears in AI-generated responses.
  • Strengthen Your Google Ads Strategy: AI Overviews are the testing ground – ads inside AIO today will teach us what’s coming to other engines tomorrow.
  • Maximize Local Authority: Keep Google Business Profile and Local Service Ads in top shape. Reviews, categories, and service areas are feeding both AI and ad visibility.
  • Think Omnichannel: Don’t rely only on search. Diversify into social ads, retargeting, and email automation to stay in front of your audience even if clicks decline.
  • Watch Emerging Partnerships: Platforms like OpenAI, Perplexity, and even Apple are in talks with data providers. Early adopters who test these opportunities will gain first-mover advantage.

The Paid Ads Revolution Is Coming…

AI Overviews and Answer Engines are rewriting the rules of digital marketing. While they currently limit ad inventory (or exclude ads entirely), the economic reality is simple: ads will follow attention.

The smart move for small and medium-sized businesses isn’t to fear the change – it’s to prepare for it. By building AI-friendly content, running smarter Google Ads campaigns today, and staying agile as new ad formats roll out, SMBs can ensure they’re ready to thrive when Answer Engines open their doors to paid advertising.

Sprout Media Lab Helps Local Businesses Future-Proof Their Marketing.

Whether it’s SEO, AEO, Google Ads, or preparing for the next big shift in digital advertising – we’ll make sure you stay ahead of the curve.

For a FREE 30-Minute Digital Marketing Consultation, click here or call us at (800) 617-6975