If you’ve noticed a drop in website traffic or leads from Google lately, you’re not imagining things. Google’s new AI Overviews feature is changing how people use search, and it’s shaking things up for local businesses across New Zealand.

A recent study shared by Search Engine Land found that when Google shows these AI-generated summaries at the top of search results, both organic and paid clicks drop dramatically. In plain terms, people are getting their answers directly from Google’s AI, and fewer of them are clicking through to actual websites.

So, what does that mean if you’re running a plumbing company in Auckland, an accounting firm in Christchurch, or a hair salon in Wellington?

What’s actually happening

When someone searches for something like “how much does a plumber cost NZ” or “best carpet cleaner near me”, Google’s AI Overview might appear first. It pulls together quick answers from multiple websites, then shows them right at the top before ads, maps, or organic listings.

That means:

• Fewer people are clicking on your organic listings, even if you’re ranking #1
• Google Ads are getting fewer clicks
• The businesses mentioned in those AI summaries are getting most of the attention

The data backs this up:

• Organic click-through rates are down around 61% when an AI Overview appears
• Paid ads see roughly a 68% drop in clicks
• Brands cited in the AI box can see 35–90% more clicks than those that aren’t mentioned

It’s clear that being referenced by Google’s AI isn’t just a nice-to-have; it’s becoming essential.

Why Kiwi businesses should care

For most local service-based businesses in NZ, Google is still the biggest driver of leads. Whether it’s booking a sparky, getting a quote for landscaping, or finding a local physio, most people start with a search.

So when Google starts showing fewer website results and more AI-generated answers, it directly affects your bottom line. Fewer clicks can mean fewer calls or quote requests.

If Google sees your business as trustworthy and relevant enough to include in those AI Overviews, you can be ahead of the competition.

What You Can Do About It

If you want your business to stay visible as Google’s AI changes search, focus on building trust and being easy to find. Make sure Google and your customers know you’re legitimate and active.

• Add your NZBN, service areas, and credentials to your website
• Keep your Google Business Profile up to date with fresh photos, accurate hours, and regular posts
• Collect authentic reviews from happy customers
• Include real case studies or before-and-after examples of your work
• Tell your story on an About Us page that shows who you are and why locals can trust you

Next, think beyond just rankings and clicks.

• Write helpful, expert content that answers common customer questions
• Add FAQs and pages for specific locations or services
• Track calls, form submissions, and bookings, not just traffic
• Use social media, email, and local directories to stay visible
• Try Google Local Services Ads or remarketing to stay front of mind
• Get involved locally through content collaborations or community sponsorships

Google’s AI Overviews are the biggest change to search we’ve seen in years. For NZ service-based businesses, it’s both a challenge and an opportunity. You might get fewer clicks, but the ones you do get will be higher-intent customers ready to call, book, or buy.

If you position your business as a trusted, authoritative local provider, you can still thrive in this new search landscape.

At Redemption Digital, we’ve been helping Kiwi businesses grow online. We’ve seen SEO trends come and go, but one thing stays the same: companies that invest in trust, visibility, and smart strategy always come out on top.

If you’d like help auditing your site or adjusting your strategy for Google’s new AI world, get in touch. Let’s make sure your business keeps getting found and chosen. Contact us today!