SGE, AI Overviews, and What They Mean for Local Businesses Using Billboards

May 30, 2025
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The rollout of Search Generative Experience (SGE) by Google is rewriting the rules of visibility.

Local businesses that once relied heavily on organic clicks are now watching traffic dip as AI overviews take center stage in search results. However, while digital impressions shrink, one traditional channel is rising in value: billboard advertising.

SGE isn’t killing search. It’s just changing how people discover, remember, and engage with brands—and in this new world, top-of-mind awareness matters more than top-of-page placement. Billboards are built for this moment.


What Is Google’s SGE and Why Should You Care?

Google’s SGE introduces AI-generated overviews that sit above or replace traditional search results. These summaries aim to answer user questions instantly—often without requiring any click at all.

Key Features of SGE:

  • AI-generated answers at the top of results
  • Reduced visibility for organic blue links
  • Fewer clicks to business websites
  • Emphasis on intent-based interaction

Google says it’s about improving user experience, but for marketers, it means less traffic from once-reliable sources.

Traffic Declines Are Real

Recent research from Search Engine Land and SparkToro shows click-through rates on organic results have dropped by as much as 30% since SGE started rolling out in late 2023. SEMrush’s traffic trends data supports the same dip across retail, service, and local business sites.

In short: even if you rank high, fewer people are clicking.

The New Funnel Is Nonlinear

Historically, a customer might Google “plumber near me,” browse a few listings, and visit a local site. But with SGE, Google might simply say:

“Here are some top-rated plumbers in your area…”
(followed by a generative summary and AI-sourced results)

This AI-created answer may pull in brand mentions, reviews, or Google Business Profile data, but it cuts off direct engagement with your website.

That’s a problem—unless customers already know your name.

And that’s where billboard advertising steps in.

Why Brand Recognition Beats Clickability Now

SGE is accelerating the shift from a click-based funnel to a brand-based funnel. Your name recognition now plays a bigger role in whether a customer engages at all.

Billboards Create Mental Availability

In marketing psychology, mental availability is the likelihood a consumer will think of your brand when they need your service. Billboards, especially digital ones placed along high-traffic routes, build this visibility.

According to the Out of Home Advertising Association of America (OAAA):

  • 83% of people recall seeing an OOH ad within the last 30 minutes of purchase.
  • Digital billboards increase online brand engagement by 38%.
  • OOH drives a 4x higher search lift than TV, radio, or online display ads.

If a user already saw your billboard for “Smith & Sons HVAC,” that name might show up in their mind—or in the search box—even if you’re not featured in the SGE box.

Direct Searches Are the New Gold

A branded search like “Smith & Sons HVAC” bypasses AI overviews. It goes straight to your Google Business Profile, website, or direct result—giving you a path around SGE’s walls.

Billboards work exceptionally well at increasing:

  • Branded search volume
  • Click-through rate on Google Ads
  • User trust in local business results

Studies show that billboard campaigns produce an 80% increase in direct website traffic when paired with minimal digital efforts like branded PPC or retargeting.

Billboard + Digital = Multi-Touch Synergy

If you’re worried that billboards can’t be measured, welcome to 2025. Today’s OOH campaigns can pair with:

  • Geofencing tools to track foot traffic
  • Pixel-based retargeting
  • Custom UTM tracking on QR codes
  • Search lift studies comparing markets with and without OOH exposure

When combined with even small digital budgets, billboards act as mass awareness fuel. Your website, Google Ads, and local pack visibility all benefit from billboard-driven brand recall.

Google even confirmed in 2024 that offline signals (like brand familiarity) influence Search Quality Rater Guidelines, further tying real-world marketing to search performance.

Local SEO Is More Visual Now

SGE’s AI overviews often pull data from:

  • Google Business Profiles
  • Local reviews
  • Structured data (schema)
  • Brand mentions across the web

This means your offline brand presence contributes to your online authority, especially if people are talking about your business across platforms. Billboards can push that conversation forward.

For example:

  • A bold billboard campaign can earn local media attention
  • Influencers and micro-creators often share creative billboard ads on social
  • Strong outdoor branding may even trigger more searches, leading to better AI inclusion

Google is paying attention to what people search, where they search from, and what they click after being shown AI content. You want your brand to be the thing they recognize in that flow.

Billboards Improve SGE Visibility Without SEO Risk

Trying to optimize for SGE directly is hard. Google hasn’t released official ranking rules. But here’s what we do know:

  • Google AI Overviews pull from reputable, well-linked, and locally relevant sources
  • Your name, mentions, and brand engagement improve inclusion

The more visible your brand is offline, the more it shows up online—even in AI-generated contexts.

Bonus: Billboards Are Immune to Algorithm Updates

Google may change how links rank. It may hide website snippets. It might remove featured results. But it can’t unsee your billboard on I-44.

In a time when SEO volatility is at an all-time high, billboard campaigns offer algorithm-proof visibility.

Real Examples of Billboards Lifting Digital Results

Several national and local studies have confirmed the compounding effect of OOH:

  • Comscore + OAAA (2023): OOH ad exposure led to a 25% lift in search behavior and a 29% lift in social media engagement
  • Facebook Internal Study: People exposed to OOH were 23% more likely to convert on Facebook ads
  • Google & Ipsos (2022): Brands using digital billboards saw a 51% lift in ad recall

This works especially well for:

  • Home service providers (HVAC, plumbers, roofers)
  • Local restaurants or retail stores
  • Legal and medical service professionals
  • Multi-location businesses targeting brand lift

How to Align Your Billboard Strategy with the AI Search Era

If you’re planning a billboard campaign in a post-SGE world, here’s what to focus on:

1. Use Brand-First Messaging

Lead with your business name. Make it unforgettable. In a world where generic keywords are disappearing, branded recall wins.

2. Own Your Local Identity

Billboards perform best when rooted in community language. To anchor the message, mention neighborhoods, local pride, or recognizable landmarks.

3. Keep It Simple and Searchable

If you’re using a vanity URL or a QR code, make sure it’s trackable. But even more important: ensure your name is easy to spell and search.

4. Refresh Creative Often

Google rewards freshness in content, and audiences reward freshness in creative. Updating digital billboards weekly or monthly keeps your campaign aligned with ongoing trends.

5. Pair with Paid Search Campaigns

Maximize synergy. Branded PPC campaigns are cheap and often get 30–40% higher CTR when people have seen your brand offline.


Final Thoughts

AI-powered search is changing the customer journey—but it’s not killing it. It’s just making brand visibility the new SEO. If you’re a local business trying to stay competitive, especially in an era where Google controls the front door, billboards are your backdoor into consumer memory.

Billboards bypass clicks. They create real-world impressions. And in a world where Google is deciding what to show, you need to make sure people are already looking for you.

SGE may dominate the screen, but billboards still dominate the street.


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