Ad engagement is robust with click-through rates rising across all campaigns, highlighted by Search CTR peaking over 16.5%. However, this traffic reveals a disconnect in purchase intent. Despite more clicks, Search conversion rates declined year-over-year to roughly 4.5%, suggesting users are browsing more but converting less, whereas Shopping and PMax maintain steadier bottom-line performance.
Across all campaigns, CTR is rising year-over-year, yet Conversion Rates (CVR) are stagnating or declining. Search experienced a massive CTR spike (peaking at ~16.5%) while its CVR plummeted below the previous year’s baseline. This indicates a shift toward prolonged consideration phases; consumers are clicking more to research but exhibiting high economic hesitancy at checkout.
Device data perfectly contextualizes this disconnect. Mobile dominates engagement (highest CTR at ~2%), acting as the primary discovery engine. However, Computers dominate intent (highest CVR at ~6-7%). Users are window-shopping on mobile but migrating to desktop for financially significant purchases, highlighting a highly fragmented, multi-device conversion funnel.
Recent platform shifts heavily influence these metrics. The integration of AI Overviews in SERPs pushes organic results down, artificially inflating Search ad CTRs as users click the first visible links. However, because these users are often seeking AI-summarized information rather than products, CVR drops. Concurrently, persistent inflationary pressures force consumers into longer research cycles, driving up cross-device clicks without proportional conversion growth. Advertisers must adapt by treating Search as an upper-funnel acquisition tool while relying on PMax and Desktop-optimized flows to close sales.