How AI Is Changing Search and What Rising CPCs Mean for Your Marketing Strategy
Written by Erin Cranney, Paid Media Manager
The search landscape is shifting fast. AI-powered summaries, evolving user behaviour, and rising ad costs are all reshaping how marketers reach their audiences.
Whether you’re running performance marketing for events, e-commerce, or brand awareness, you’ve probably noticed: your CPCs are creeping up, and in some industries, they’re spiking.
So, what’s going on? Let’s break it down.
How is AI impacting search and CPCs?
Search engines, especially Google, are rolling out AI-generated answers (known as AI Overviews or Search Generative Experience). These sit above traditional organic results — and even paid ads in some cases.
For users, it’s great. They get quick answers without clicking.
But for marketers? That’s a challenge, as more zero-click searches mean fewer opportunities to drive traffic from search, paid listings are competing with AI summaries, often appearing lower on the page and this is all happening while CPCs continue to rise.
CPCs are up
According to recent industry data: CPCs increased 10% year-over-year across all industries in 2024, with certain sectors seeing CPCs climb to $8.94 and $6.96 respectively.
Some industries (education, health, B2B) report cost-per-lead increases of 50–100%. (Source: PPC Land)
Why AI and rising CPCs in marketing are accelerating
It’s not just AI overviews. Several factors are pushing CPCs up such as higher competition levels – brands are investing more into paid search, especially in saturated verticals.
Higher demand = higher bids. AI-powered bidding strategies are also playing a factor with Google’s Smart Bidding optimising for conversions — however, this is sometimes too aggressive, leading to inflated costs if not managed carefully.
With third-party cookies on the way out, targeting has become more challenging. That means broader targeting and higher acquisition costs.
How does this effect paid advertising campaign performance?
Event marketers and digital teams are feeling the heat. You might be noticing:
- Lower CTRs as AI answers steal visibility
- Higher CPAs even when conversions are steady
- Increased pressure on ROI.
For campaigns tied to events or time-sensitive launches, the stakes are even higher — every click counts.
What can marketers do about it?
Staying ahead of AI and rising CPCs in marketing means rethinking your bidding strategy, optimising for intent, and diversifying your ad platforms.
1. Optimise for more qualified traffic
AI Overviews are giving users part of the answer. Make sure your ad and landing page finish the story. Tailor content for more educated, high-intent users.
2. Focus on first-party data
With audience targeting evolving, your own email lists, CRM data, and event registrants are gold. Use them for lookalike audiences or retargeting.
3. Rethink your bidding strategy
Don’t just “set and forget” Smart Bidding. Regularly audit your campaigns, test manual bidding, and monitor how aggressive AI is bidding on your behalf.
4. Diversify your channels
As search costs rise, explore other performance platforms (LinkedIn, Meta, Programmatic platforms such as DV360 or StackAdapt).
The rise of AI in search is changing how people discover and interact with content.
For marketers, especially in the event and performance space, it means you’re paying more for less visibility, you need smarter targeting, better creative, and a strategy tuned to post-AI user behaviour.
The brands who adapt fastest — by investing in data, experimenting with channels, and building trust you will find higher success rates.
Platform Cost Trends 2025: What Marketers Must Know
As rising costs continue to challenge paid media campaigns across platforms like Google, Meta, and LinkedIn, adapting to these changes is more crucial than ever.
In our latest webinar, Group Director of Paid Media, Jack Butler, dives deep into the factors driving these increases, from AI-driven bidding systems to the growing competition for audience attention.
Jack shares practical strategies to help you optimise your campaigns, including platform benchmarks, performance frameworks, and tips for making every penny of your budget count.
Don’t miss out on this opportunity to learn how to spend smarter, not less, in 2025 and beyond. Watch the webinar now and start implementing the strategies that will keep your campaigns ahead of the curve.
Ready to learn more? Sign up now and jump straight into our 10 minute session.