by Terry MacCauley - Posted 14 minutes ago
At Big Time Advertising and Marketing, we understand automotive dealers' challenges in a rapidly evolving digital landscape. Artificial Intelligence (AI) is reshaping how customers find information online, particularly through search engines like Google. In 2025, AI-driven features like Google’s AI Overviews are transforming Search Engine Results Pages (SERPs), pushing traditional organic results and ads lower, and amplifying the importance of Search Engine Optimization (SEO). These changes pose significant risks to visibility and market share for automotive dealers, but they also offer opportunities for those who adapt quickly. Today, we will explore how AI is changing search results, why it matters for dealers, and the infrastructural moves they must make to maintain a competitive edge while addressing challenges with ad spend return on investment (ROI).
AI fundamentally alters how search engines deliver information, impacting how automotive dealers reach potential customers. Here is a detailed look at the key changes:
Google’s AI Overviews, fully rolled out in 2025, provide concise, AI-generated summaries at the top of SERPs. According to Google, these overviews have been used billions of times, with users asking more complex questions (long-tail search) and engaging more with search (Google’s AI Overviews). For example, a search for “best SUVs in 2025” might return a summary of top models, features, and prices, reducing the need for users to visit dealer websites. Research suggests this could lead to a significant drop in organic traffic, with some estimates indicating up to a 60% decrease for businesses not optimized for AI (How AI is Changing Paid Search).
Beyond AI Overviews, search engines integrate generative AI to create interactive and personalized experiences. Features like Google’s AI Mode, Project Astra, and Circle to Search (CTS) allow users to ask complex questions, compare products, or search using videos and augmented reality (Google AI in 2025). For instance, a user could use CTS to scan a car on the street and instantly compare similar models from local dealers. These advancements mean that as dealers, we must adapt to new ways customers discover vehicles, as traditional website visits may decline.
AI Overviews are pushing traditional organic results and paid ads further down the SERP, where they are less visible. A 2025 study found that search results featuring AI Overviews have a 34.5% lower average clickthrough rate (CTR) than traditional results (How AI is Changing Paid Search). For dealers, their listings or ads may not appear in the prime “above the fold” area, reducing clicks and leads. Additionally, platforms like ChatGPT are introducing shopping features that could soon include ad inventory, further diversifying the search landscape.
Why This Matters for Dealers:
Reduced website traffic due to AI Overviews can lead to fewer leads and sales, which in turn heavily affects cost per lead and all conversions.
Lower visibility of ads and organic results challenges traditional marketing strategies.
Dealers must adapt to new search formats to maintain customer engagement.
As AI reshapes search, strong SEO is becoming indispensable for automotive dealers. So let us look at how to optimize for this new landscape:
To appear in AI Overviews, dealers must create high-quality, authoritative content that AI systems will likely summarize. This includes detailed vehicle guides, FAQs, and local service information optimized for natural language processing. For example, content answering the question, “What are the best features of the 2025 Toyota Camry?” could be picked up by AI Overviews, driving visibility. Research indicates that these kind of relevant links leads to a 26% higher closing rate on internet leads, a 24% increase in repurchase rates, and 95+ additional repair orders per month (2025 Automotive AI Predictions).
Real-world examples highlight AI’s impact. A dealer in Massachusetts uses AI for Google AdWords automation and data integration, improving lead targeting and personalization, which has positively impacted their bottom line. Similarly, dealers using AI platforms report 27% higher appointment set rates and 26% higher closing rates on internet leads, demonstrating AI’s potential to enhance online visibility and conversion. The time has arrived for AI Google AdWords integration.
Why This Matters for Dealers:
AI-optimized SEO ensures visibility in AI-driven search results, maintaining market share. We have one of the best teams for helping with SEO and ensuring AI visibility.
High-quality content establishes dealers as authoritative sources, fostering customer trust.
AI’s dominance in search is creating challenges for traditional paid digital advertising especially Google's PPC. We are witnessing a paradigm shift right now across the country.
With AI Overviews answering queries directly, fewer users are clicking on Google Ads. For example, a search for “car dealerships near me” might display an AI summary of local options, reducing ad clicks. This can lower ROI for dealers relying on paid search, as users find answers without engaging with ads. We have always said the best Google ad is one that is not clicked on because we can remarket them and convert on a less expensive social platform.
While traditional digital ads face challenges, new opportunities are emerging. Google introduced ads within AI Overviews in October 2024, with plans to expand globally in 2025. These ads can drive high-value traffic, offering dealers a chance to stay visible. Additionally, platforms like ChatGPT are testing shopping features that may soon include ad inventory, providing new avenues for engagement.
To address declining ad ROI, dealers should allocate budgets to content marketing. Creating valuable resources, such as blogs on vehicle maintenance or local market trends, can attract organic traffic and position dealers as industry leaders. Retargeting campaigns targeting users who have shown interest can also improve ROI.
Why This Matters for Dealers:
Reduced ad effectiveness requires a shift to alternative strategies like content marketing.
Exploring AI-driven ad formats can help maintain visibility in a competitive landscape.
To avoid losing market share, dealers must make strategic investments now:
AI is transforming dealership operations beyond search. Virtual showrooms allow customers to explore vehicles online, customize options, and take virtual test drives, reducing the need for physical visits (Five Ways AI Will Disrupt Dealerships). AI-driven chatbots provide 24/7 customer service, answering queries and offering personalized recommendations. Data analytics help dealers optimize inventory and target high-intent leads. A 2025 survey found that 100% of dealerships using AI reported revenue increases, with 37% seeing a 10-30% boost and 18% seeing over 30% (Fullpath Survey).
As AI tools become integral, dealers must train staff to work alongside them. This ensures seamless integration and enhances customer experiences without replacing human roles. AI certification programs help dealerships maximize AI’s potential.
Staying informed about AI developments is crucial. Events like the 2025 AI Showcase at the Modern Retailing Conference and following thought leaders on X provide valuable insights.
Why This Matters for Dealers:
Early AI adoption can improve efficiency and customer satisfaction, giving dealers a competitive edge.
Failing to adapt risks losing market share to tech-savvy competitors.
The AI market in automotive is projected to grow at a 42.8% CAGR from 2025 to 2034, driven by applications like predictive maintenance and smart diagnostics (AI in Automotive Market). Dealerships that build an AI foundation now will be well-positioned for a future where AI is as essential as websites and CRMs.
To thrive in this AI-driven landscape, dealers should:
Optimize Content for AI: Create detailed, authoritative content with specific financial terms, vehicle comparisons, and local relevance.
Invest in AI Technologies: Adopt virtual showrooms, chatbots, and data analytics to enhance operations.
Adjust Ad Strategies: Shift budgets to content marketing and explore AI-driven ad formats.
Train Staff: Equip employees with skills to work with AI tools.
Monitor Trends: Stay informed through industry events and thought leaders.
AI is drastically changing search results, challenging automotive dealers to adapt to maintain visibility and market share. By optimizing content for AI-driven search, investing in AI technologies, and adjusting marketing strategies, dealers can turn these challenges into opportunities. At Big Time Advertising and Marketing, we are here to help you navigate this transformation. Contact us to learn how we can support your dealership’s digital strategies. The future is right now.
-by Terry MacCauley, Founder & CEO
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