Winning AI Overview Ad Placements: A Local Search Strategy for Small Business Owners in 2026
If you’ve used Google in the last year, you’ve seen the change. Where there used to be ten blue links at the top of the search results, there’s now often an AI Overview, a summary that pulls information from multiple sources and answers your question directly inside the search page. For some queries, users get what they need without ever clicking through to a website.
Most coverage of this shift focuses on the bad news. Organic click-through rates have dropped sharply on queries where AI Overviews appear. There’s less traffic to win, and the traffic that does come through is harder-earned.
What gets less attention is the good news for small business owners. Google now allows ads to appear above, below, and within AI Overviews depending on the query, the user, and the campaign settings. This is a brand new piece of search real estate that didn’t exist two years ago. The advertisers who learn how to qualify for these placements early will have a real advantage.
What AI Overview ad placements actually look like
When a user searches for something that triggers an AI Overview, the layout has changed. The AI-generated answer appears prominently. Around it, and sometimes inside it, ads can now appear. These aren’t separate ad units you can specifically buy. They’re placements your existing Search campaigns can become eligible for, based on signals Google evaluates in real time.
For a local Perth business, this matters most on informational queries that lead to commercial intent. Someone searches how to choose a wedding photographer and gets an AI Overview explaining the process. Inside or beside that overview, your photography business ad can appear. The user who was researching becomes a potential customer because your ad showed up at the moment of decision.
How ads qualify for AI Overview placements
Google has been clear that eligibility depends on several factors: geography, language, campaign type, user intent, and ad relevance. Some of these you can’t control directly. Others you absolutely can.
The factor with the most direct influence is ad relevance. Ads that closely match the intent behind the search are far more likely to qualify. That means generic ad copy doesn’t cut it. The more specifically your ads address the underlying question, the better your odds.
AI Max-enabled campaigns have a structural advantage here because they’re designed to read user intent and customize ad copy to match. If you’re running standard Search campaigns with rigid, exact-match keywords and generic ad copy, you’re less likely to qualify than a competitor running AI Max with strong text guidelines.
Step 1: Strengthen your landing pages first
Before you change anything in Google Ads, audit the landing pages you’re driving traffic to. Google’s AI evaluates the quality and relevance of your destination, not just your ad copy. A great ad sending users to a thin or generic page won’t qualify for premium placements.
Each landing page should answer the specific question your ad addresses. If your ad targets emergency plumber Perth same day, the landing page should make it instantly clear that you offer same-day emergency plumbing in Perth, with proof points like response time guarantees, service areas, and pricing transparency.
Pages that include real photos, customer reviews, clear contact information, and structured data markup tend to perform better. So do pages that load quickly on mobile, since most local searches happen on phones.
Step 2: Use AI Max features deliberately
Enable AI Max on your Search campaigns, but configure it with care. Turn on search term matching to expand your eligibility. Turn on text customization so the AI can adapt your ad copy to specific queries. Use text guidelines to keep that customization on-brand.
If you’ve never set up text guidelines, this is where to focus. Tell the AI what your business does in clear language. Specify the customer benefits you want emphasized. Specify the words and claims you don’t want used. The more guidance you give, the better the AI performs.
Final URL expansion is more controversial. It lets Google route clicks to whichever page on your site it considers most relevant. For a small business with a few well-built service pages, this can lift conversion rates. For a business with messy or inconsistent landing pages, it can send traffic to pages that aren’t ready to convert. Test before committing.
Step 3: Improve ad relevance scores systematically
Inside Google Ads, you can see Quality Score and ad relevance grades for every keyword. Pages with higher ad relevance scores are more likely to qualify for AI Overview placements.
Improving these scores takes three things. Tighter ad groups, where each group covers a small set of related keywords rather than dozens of unrelated ones. Stronger ad copy that specifically references the keywords in that ad group. And better landing page alignment, where the page reinforces what the ad promised.
If you have ad groups with 50 different keywords going to one generic page, split them. Smaller, more focused ad groups consistently outperform larger ones, especially in an AI-driven environment.
Step 4: Track AI Overview placements separately
Google Ads reporting now includes more granular insights into where your ads are appearing. Take advantage of this.
Look at your impression share and conversion data segmented by placement type when that data is available. Notice which keywords drive the most AI Overview eligibility and which campaigns get included most often. Use this data to double down on what’s working.
If specific products, services, or service areas are getting strong AI Overview visibility, consider building dedicated campaigns for those areas with even more specific ad copy and landing pages.
Step 5: Optimize for the AI moment of decision
The strategic shift you need to make is this: AI Overviews change when in the journey users see your ad. Traditional search ads showed up when users were already looking for a specific product or service. AI Overview ads show up earlier, when users are still researching or learning.
Your ad copy needs to acknowledge that earlier stage. A user reading an AI Overview about how to choose a builder isn’t ready to call you yet. They want reassurance that you understand their situation and can help.
Adjust your ad messaging for that mindset. Instead of get your quote in 24 hours, try building your first home? We’ve helped 200 first-time builders in Perth navigate the process. The message meets users where they are.
Common mistakes to avoid
The first mistake is treating AI Overview placements like a separate channel to optimize for. They aren’t. They’re an outcome of doing your fundamentals well. Strong landing pages, tight ad groups, AI Max enabled with proper guidelines, and relevant ad copy. Get those right and the placements follow.
The second mistake is over-optimising for informational queries that don’t convert. Just because a query triggers an AI Overview doesn’t mean it’s commercially valuable. Track conversion data, not just visibility data.
The third mistake is ignoring brand searches. AI Overviews increasingly appear on branded searches too, including searches for your business name. Make sure your branded campaigns are well-structured so competitor ads don’t dominate the AI Overview placement when someone searches specifically for you.
The window to get ahead
AI Overview ad placements are still new enough that most small business advertisers haven’t optimised for them. That window is closing as more agencies and account managers learn how the system works.
For Perth small business owners, the next six months are the time to invest in landing page quality, AI Max setup, and ad relevance fundamentals. Not because of any magic trick, but because the businesses that master the basics now will be the ones qualifying for premium AI Overview placements while competitors are still trying to figure out what’s happening.
The fundamentals haven’t changed. The placements have.
Have questions about setting up AI Max or improving your ad relevance scores? Let’s Talk! →
