TLDR: Despite significant reductions in organic search traffic, some agencies are reporting stable or even improved conversion rates, indicating a fundamental shift in how AI-driven search results impact digital marketing strategies.
The landscape of digital marketing is undergoing a profound transformation as artificial intelligence (AI) continues to reshape search engine results. Recent observations from various agencies indicate a substantial decline in organic search traffic, with some reporting drops as high as 60%. However, a surprising trend has emerged: conversion rates for these agencies are largely holding steady, and in some cases, even increasing.
This phenomenon is primarily attributed to the rise of AI Overviews (AIOs) in search results, which provide direct answers to user queries, often reducing the need for users to click through to external websites. Experts like Wil Reynolds, founder of Seer Interactive, noted a personal experience where his business’s search traffic plummeted by 45%, yet revenue remained at pre-pandemic highs. This divergence highlights that traditional traffic metrics may no longer be the sole indicator of business performance.
Charlie Marchant, CEO of Exposure Ninja, and Dale Davies, Head of Marketing, discussed in an April 2025 podcast that AI Overviews appear in approximately 96% of informational searches, primarily affecting top-of-funnel content. They emphasize that while direct clicks may decrease, being featured in AI Overviews can still build powerful brand recognition. This ‘stickiness’ is crucial, as users might not click immediately but may recall the brand in subsequent searches.
Agencies are now being urged to adapt their reporting frameworks, shifting focus from raw traffic numbers to more impactful conversion metrics. The consensus among industry leaders is that the traffic being ‘slashed’ by AI is often low-intent, top-of-funnel traffic that historically contributed less to conversions. As Marchant explains, ‘You need to think about what the strategy is to move people down the funnel and get commercial intent and not worry too much about the top of the funnel.’
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This evolving environment necessitates a re-evaluation of SEO strategies. Optimizing content for AI Overviews, focusing on high-intent commercial queries, and leveraging brand mentions within AI-generated summaries are becoming critical. The updated Google Quality Rater Guidelines also explicitly target AI-generated content lacking substantial human expertise, underscoring the importance of quality and authority in the AI era. While the initial shock of traffic reduction might seem daunting, agencies that pivot to a conversion-centric approach and understand the nuances of AI’s impact are finding resilience and new opportunities in this dynamic digital landscape.
