
WEST PALM BEACH, FL – Local businesses and marketing professionals are reporting a decline in leads generated from search engine results pages (SERPs), a trend tied to evolving search features and shifting user habits, according to multiple industry analyses and data studies.
In 2025 and 2026, Google increasingly integrated generative AI features into its search interfaces. AI Overviews, which synthesize information at the top of the page, have been rolled out across a growing percentage of queries, reshaping what users see before organic listings. Independent studies show AI Overviews now appear on a substantial share of local business–related searches, influencing click-through behavior.
For queries with AI Overviews, detailed measurements suggest that organic click-through rates can drop significantly when businesses aren’t included in the AI summary, indicating users often find answers directly without navigating to business websites.

At the same time, Local Services Ads, a paid ad type that lists service providers prominently at the top of search results, continues to draw significant engagement. Analysis across multiple industries indicates these ads often capture a large share of leads – sometimes exceeding half of total inbound inquiries for service businesses – even when those companies also rank in the traditional local pack.
In addition to ads and AI-generated summaries, Google now frequently surfaces full product shopping modules for service-related searches. For queries such as tire replacement, users may see pricing, retailers, reviews, and delivery options before encountering any organic local businesses – further compressing the space available for traditional map and website results.

Traditional Local Pack Visibility Is Shifting
Independent data indicates that new AI-informed elements in search results are associated with lower visibility for some businesses in the classic “Local Pack” or 3-Pack – the three business listings traditionally shown near the top of Google results for local intent queries. One analysis found that among hundreds of markets studied, AI-augmented local packs featured far fewer unique businesses compared with traditional packs, suggesting a contraction in the number of companies that appear in those spots overall.

For local marketers, the result is a divided attention economy: users may see AI-generated responses, ad units, or social search interfaces before reaching a business’s organic or map listing.
User Behavior and Platform Shifts Compound the Effect
Alongside changes in Google SERPs, industry observers note that people are increasingly turning to alternative channels for local discovery, such as YouTube, TikTok, and conversational AI tools. Searches and engagements on those platforms don’t always translate into traditional web traffic, complicating efforts by local businesses to generate leads through standard SEO alone.
This shift reflects broader trends in social and search behavior. Social media analytics firms report that video formats, both short-form and long-form, are central to how users discover local services and brands.
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Agencies and Businesses Reassess Lead Strategies
As a result, local SEO professionals are adapting their service offerings beyond website optimization and Google Business Profile management. According to recent industry discussions, some agencies are emphasizing diversified marketing strategies to maintain and grow lead pipelines. These recommendations include:
- Creating video content for platforms such as YouTube, Instagram, TikTok, and Facebook.
- Engaging in social media marketing and community platforms such as Reddit and Quora.
- Incorporating paid search services, including Local Services Ads.
- Leveraging digital public relations (PR) and branded content tactics.
Marketing experts say this diversification is not merely tactical but necessary, because many businesses care foremost about leads and conversions, not where those contacts originate. In the current environment, simply ranking high in the local pack no longer guarantees visibility or customer engagement.
Some agencies, however, say their clients have weathered these changes more smoothly than others. SEARCHEN NETWORKS®, for example, notes that many of its customers continue to generate consistent leads, citing an early shift toward diversified marketing strategies that extend beyond local listings alone. Those efforts have included digital PR, branded content, and sustained video and social media activity across multiple platforms.
Looking Ahead
Search analytics and marketing professionals caution that local search will continue to evolve as AI-driven features and user preferences shift. Agencies and businesses that adapt by broadening their presence across search platforms, social channels, and paid advertising are better positioned to weather volatility in organic search visibility and lead generation.









