How AI search is changing digital marketing for small businesses

Rising costs and algorithm changes are forcing entrepreneurs to rethink their online strategies, says Sam Robson, founder of SEO consultancy the better web co.

Sam has seen plenty of disruption during his years at major publishers like Future PLC and Saga.

But the digital marketing consultant says Google's rollout of AI Overviews represents "the biggest change I've seen in a long time" – fundamentally altering how people search online and how businesses reach customers.

For small businesses, the implications are significant. Data shows digital marketing costs are rising steadily while clicks are becoming harder to secure.

Sam's concern isn't just rising costs, but the fundamental restructuring of search itself. He says:

"Google advertising is definitely more expensive. And there's been a huge shift in the organic algorithms, particularly over the last year.

"Google is now consolidating everyone's information and putting it at the top of the results. So, you don't get as many clicks anymore."

Increased digital costs

According to Media Performance's analysis, in 2024, 86% of industries saw higher cost per clicks (CPCs) compared to the previous year, with an average rise of around 10% year-on-year. The average CPC reached £3.40, up from £3.08 the year before.

The long-term trend shows UK businesses have seen costs climb from £1.35 per click in 2019 to £2.10+ in 2024. That's a 56% increase over five years, according to Digital Fuel's research.

The rises vary considerably by sector:

• Property CPCs increased by around 35.5% year-on-year.

• Retail and shopping brands saw approximately 20% increases.

• Legal services continue to command some of the highest CPCs at £5.53 to £7.11, with some legal keywords reaching £10 to £50 per click.

Industry data from late 2023 shows paid search ad impressions declined by around 15% year-on-year, even as ad spend increased by 4% – creating a supply-demand imbalance that pushes costs higher.

The impact of AI Overviews

The most significant technical change Sam identifies is Google's AI Overviews system, which combines several different data sources into a single answer at the top of search results.

Google plans to roll out AI Mode as the default search experience "soon". While users can currently opt in to AI Mode, making it a standard function could substantially change user behaviour.

Sam says:

"Whatever the default Google search behaviour is, people don't really change it very much."

Impact on the quality of information available

It's increasingly common for premium journalism to sit behind paywalls, which means AI systems can't use it for training unless they have a direct deal with the publisher.

Sam explains:

"Good-quality journalism is becoming more and more paywalled. While it's right that publications are paid for their efforts, this potentially creates a bit of a class issue.

"There's a risk that good-quality journalism is only available to those who can afford to pay for it."

This means most people are getting information from large language models (LLMs – basically the underlying AI technology that powers tools like ChatGPT) or from algorithmic platforms, whether search or social.

The algorithms themselves have a common issue where they reward more sensationalist content over carefully researched reporting.

Sam says:

"We've all seen the clickbait that leaves a fact out of the headline. Leaving out the key facts makes it intriguing, and people feel compelled to click it. But it's often a poorly researched, badly written piece of copy.

"The issue then escalates, as the algorithms use click data to decide what's popular. This creates a real challenge with personalisation when it pushes too far.

"Because personalisation creates circles where, after you've engaged with clickbait, you're served more clickbait. Then you just keep getting worse and worse content as the algorithm rewards these sensationalist headlines."

Practical strategies to combat the change

Rather than going head on with the algorithm, Sam suggests small firms shore up their communications using some good old-fashioned techniques.

1. Comprehensive website information

Make sure all the information on your website is current and detailed, as AI systems will reference it directly.

Sam warns:

"If it doesn't have you to go to as the source, it'll get it from somewhere else or it'll hallucinate it.

"If there's anything about your business that you think is really important, talk about it on your site very clearly."

That includes detailed product descriptions, contact details and service pages.

2. Open platform reviews

Platforms like Trustpilot, TripAdvisor and OpenTable are increasingly important because "Google's kind of shortcutting that journey" of manual research.

AI systems now consolidate review data with other information when providing recommendations.

3. Strategic PR

"PR is thriving because people are trying to get out there and make sure that they're in these guides," Sam notes.

AI systems reference published content when making recommendations, giving traditional PR renewed importance.

"If you want LLMs to return your business when someone asks what the best restaurant is, you need to be recommended in articles listing best restaurants. It's that simple."

4. Email marketing

"If you can develop a direct relationship with your customer, that's the absolute ideal," Sam advises.

That includes newsletters, customer databases and direct communication channels that bypass algorithmic changes entirely.

5. SEO (search engine optimisation)

Sam says:

"If you spend any time on LinkedIn, you'll have no doubt read how SEO is dead and everyone only uses LLMs to get information now.

"This is completely false. Google remains by far the largest referrer of traffic across the internet, despite the challenges laid out above, and remains worthy of your time and efforts."

6. Offline marketing

Sam even suggests reconsidering offline marketing methods where "digital costs won't rise", including local events and community engagement like leafleting.

7. Doing one or two things well

Sam explains:

"If you've got a really strong Facebook page, or have a good YouTube presence already, lean into them. Because it's quite hard to build these pages from scratch these days without a major investment of time and/or money."

8. Focusing on authenticity

Looking ahead, Sam recommends businesses focus on authenticity.

"In a world where people are using AI to do everything... a bit of storytelling, a bit of personality, that's really going to stand out."

9. Working strategically

Rather than spreading efforts thinly across several platforms, Sam says, "pick a couple that you can do really well, as it's too time-consuming to do all of them.

Growing an audience is much harder than it used to be, so focus on where you think your audience spends its time and where you think you can create something that's useful, relevant and authentic.

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