Let’s not sugar-coat it: click-through rates are dropping. Fast.
Across search, across sectors, across paid and organic — fewer people are clicking, even when the content is good. And for marketers, that’s a problem.
At BH&P, we’re seeing it in the data. Not just industry-wide, but across our own client campaigns. There are lots of reasons why this is happening - not least the rise and rise of AI-enabled search.
People are searching for and engaging with content more than ever before.
The key is not to panic., but to adapt.
In this article, we break down what’s happening behind the scenes — from Google’s evolving AI Overviews to changing user behaviour — and share some of the strategies we’re using to stay ahead, including a closer look at the rising potential of Google Discovery Ads.
Recent studies, including a comprehensive report by Seer Interactive, have pinpointed a notable decrease in CTRs across approximately 10,000 informational intent keywords. Interestingly, this decline persists irrespective of the presence of Google AI Overviews, suggesting a broader shift in user engagement and behaviours.
The data indicates a sharp drop in organic CTRs from 1.41% to 0.64% year over year in scenarios where AI Overviews are present. Conversely, in their absence, organic CTRs have seen a slight increase.
The situation is similar in paid search, with CTRs falling regardless of AI involvement, underscoring a universal challenge across advertising formats. Despite these trends, there's a silver lining: both paid and organic CTRs have shown improvement when brands are featured within AI Overviews, rising from 7.89% to 11% and 0.74% to 1.02%, respectively.
There are a whole host of factors at play here - the variations in CTRs can be attributed in the main to three key factors:
Google’s AI-driven content summaries, intended to enhance user experience by providing quick answers, may be reducing the need for users to click through to external websites.
The impact on CTRs varies significantly across industries. For example, websites in the Law, Government, & Politics sectors have experienced less decline compared to those in Energy or Technology, reflecting different user intent and engagement levels.
Users are becoming increasingly adept at ignoring ads that do not resonate with their immediate needs or interests, contributing to lower engagement rates.
In response to these challenges, Google Discovery Ads emerge as one promising solution. These ads are designed to capture user interest through visually engaging content that appears in non-search environments like YouTube, Gmail, and the Discover feed. The strengths of Discovery Ads lie in their ability to:
To combat declining CTRs, marketers should consider several adaptive strategies:
The decline in CTRs presents a complex challenge that requires a multifaceted approach. By understanding the underlying factors and adapting strategies accordingly, marketers can better navigate this changing landscape. Google Discovery Ads represent just one of the tools in a marketer's arsenal to engage users more effectively and counteract the broader trends affecting digital advertising. As we move forward, continuous innovation and adaptability will be key to achieving sustained engagement and conversion rates.
See how we helped Stay Energy Safe tackle energy theft with an emotive, multi-channel campaign.