Google’s Search Generative Experience (SGE) is one of the most disruptive developments in search marketing since the introduction of paid ads themselves. By using generative AI to answer user queries directly within the SERP, Google is reshaping how people discover information — and how advertisers capture attention.
For brands and agencies in New Zealand and Australia, this is not a future concern. SGE is being gradually introduced across the region, and advertisers must act now to prepare for what’s coming.
In this blog, we explore what SGE is, how it changes user behaviour, and what forward-thinking advertisers are doing to adapt and thrive.
What Is SGE and Why It Matters
SGE (Search Generative Experience) blends traditional Google search results with AI-generated summaries that sit at the top or centre of the page. These summaries pull content from multiple sources to answer a user’s query in a conversational, concise format.
The impact? Users may get their answers without ever clicking through. This directly challenges both organic SEO and paid search models — particularly for top-of-funnel and informational queries.
The New Search Journey
SGE represents a fundamental change in how users interact with search:
- Users spend more time reading AI-generated summaries.
- Clicks are concentrated further down the funnel (where intent is stronger).
- Visual and branded assets gain more influence.
Early testing shows click-through rates on traditional ads decrease slightly in SGE results, but brand-recognisable content and images perform better in visual formats like Shopping and YouTube.
How Google Ads Are Evolving in SGE
Google is currently experimenting with new ad placements within and adjacent to SGE results. These may include:
- Sponsored summaries generated by advertisers’ own landing pages
- Image-based Shopping modules appearing between AI content blocks
- YouTube Shorts and Discovery-style cards appearing in the middle of AI summaries
In other words, your ads may no longer be on the right-hand side or top — they may be integrated contextually into the user journey.
Risks for Advertisers
- Reduced brand discovery: Especially for businesses reliant on generic keywords.
- Increased reliance on Performance Max: Since SGE demands assets that work across formats.
- Greater dependency on Google’s AI: With less insight into what’s actually driving clicks.
- Rising CPCs: Due to tighter real estate and higher-quality asset requirements.
Opportunities for Smart NZ/AU Brands
- Focus on mid-to-bottom funnel content: Create assets that solve problems, not just pitch.
- Use first-party data to inform your creative: Align your messaging with the way users ask questions.
- Optimise assets for visibility: Strong headlines, high-res images, and mobile-first design matter more than ever.
- Double down on branded queries: Protect your traffic by investing in Brand campaigns and native content.
- Embrace YouTube and Discover: These placements are being pulled into SGE more frequently.
Case Example – Melbourne Tech Retailer
A tech retailer in Melbourne saw a 27% drop in click volume on generic Search ads after SGE beta launched in their category. However, by expanding into YouTube Shorts, upgrading Shopping images, and layering PMax campaigns with video assets, they recovered traffic volume and improved ROAS within 90 days.
The takeaway? Adaptability wins visibility.
Preparing for SGE: Practical Steps
- Audit your top-performing assets — are they visual, mobile-friendly, and AI-readable?
- Track shifts in impression share and branded search volume.
- Build campaigns that support the full journey: Search, Display, YouTube, Shopping.
- Start testing creative in Discovery and Performance Max now — they’re feeding SGE.
Final Thoughts
SGE is not the death of Google Ads — but it’s a major pivot. For advertisers in New Zealand and Australia, it’s a wake-up call: Search behaviour is changing, and campaign strategies must evolve with it.
Those who adapt early will gain competitive visibility and performance. Those who don’t may find themselves optimising for a world that no longer exists.
At Metrics Media, we help businesses across NZ and AU evolve their digital advertising for what’s next. From asset audits to full-funnel campaign design, we’re preparing clients now for the future of AI-powered search.
Contact info@metricsmedia.co.nz to book a strategic consultation on how to future-proof your Google Ads strategy.