Google’s rollout of AI-powered search results - known as AI Mode or more specifically the Search Generative Experience (SGE) - is fundamentally reshaping how users discover and engage with content online. While still being phased in, the early signs are clear: SGE is already disrupting brand visibility and referral traffic, and smart brands are paying attention.

The Decline of Traditional Referral Traffic

For years, organic search traffic from Google has been the cornerstone of mid-funnel shopping as consumers search for products to solve specific needs. But as AI-generated summaries begin to dominate search results pages, fewer users are clicking through to traditional website links. According to SparkToro,65% of Google searches in 2023 ended without a click - a number that continues to grow as SGE becomes more prominent.

Research from Search Engine Journal and Similarweb also shows that many brands are experiencing a decline in overall Google-referred traffic. Interestingly, some are seeing an increase in homepage visits, suggesting users may be bypassing deeper pages and heading straight to brand homepages, possibly after encountering mentions in AI summaries or social content.

The Role of Dark Patterns in “Direct” Traffic

There are other drivers behind the rise in “direct” traffic. Increasingly, shoppers - especially Gen Z - start their journey on social platforms rather than Google. Infact, our own research at SimplicityDX shows that:

• 41% of Gen Z turn to social first when considering a purchase.66% of all shoppers use social for shopping every week - rising to 92% for Gen Z.

Why? Because social platforms let shoppers see products in action, reviewed and recommended by creators they trust.

But the journey from social to purchase is often fragmented. Seventy-nine percent of US social shoppers say it can be difficult to find products featured in social posts. Links are frequently missing or broken creating significant friction for shoppers looking to buy featured products. Many shoppers give up on clicking through and head directly to the brand’s website. What’s more, in-app browsers used by platforms like Instagram and TikTok strip out tracking -making it impossible to identify where the user originally came from.

This phenomenon is known as “dark social” traffic - and it’s a key reason why ‘direct’ traffic is a misleading term and metric.

What “Direct Traffic” Really Means

Despite its name, “direct traffic” is really unattributed traffic - sessions where the referrer is unknown or hidden. Critically this includes all in-app browser traffic which has grown in importance rapidly. While direct includes traffic where users type in a URL, it misses the all-important context: where did the shopper first discover the brand or product which prompted the shopper to enter the URL?

In many cases, that source is social media.

Take ModCloth, for example. While analytics tools showed that only single digits of its traffic came from social media, a post-purchase survey revealed that 56% of customers attributed their purchase to social. The disconnect is clear.

Three Key Implications for Brands

1. Brands should not rely solely on Google for Top or Mid funnel Discovery

With SGE summarizing and condensing multiple sources into a single AI-generated answer, traditional organic listings are losing their influence. Brands that once relied on blog posts or landing pages to attract early interest are seeing that strategy weaken.

“Google’s SGE is changing the behavior of searchers,” says Rand Fishkin, co-founder of SparkToro. “The job of digital marketers needs to change. Marketers need to work on influencing people in the places they already pay attention: the social networks, search engine answers and AI tool responses.”

2. Alternative Channels, Especially Social, Are Essential

As Google becomes less dependable for discovery, brands must meet shoppers where they already are: on social. Platforms like Instagram, TikTok and YouTube are now essential spaces for capturing consumer attention.

These platforms favor short-form video, visual storytelling, and content from trusted voices - perfectly aligned with how today’s shoppers browse, research, and discover products.

3. Creators Are the New Authorities

With AI search reducing the visibility of brand-owned content, creators and influencers have become critical authorities. They don’t just drive awareness - they provide social proof, product education, and in many cases trust.

This has led to the rise of creator storefronts: dedicated storefronts that showcase the products featured by creators, embed creator content, and connect the social post with the products via a seamless shopping experience. These help brands connect inspiration with action and smooth the path to purchase. The impact is significant: brands can see double the conversion rate and a 60%increase in average order value using creator storefronts.

Winning AI Mode - But Don’t Rely on It

Brand scan and should optimize for visibility in AI summaries, using:

• Concise, authoritative, fact-checked content
• Structured data and schema markup
• Frequently updated, high-quality pages

But even with best practices in place, there are no guarantees. You can’t control whether your brand is featured, or whether users will click through.

Diversify how your brand gets found

To succeed in this new landscape, brands need a diversified approach:

‍Social for Discovery

Create native content that aligns with each platform’s style - vertical video, trends, challenges, and storytelling

Creators for Authority and Referrals

Build genuine partnerships with influencers who can be credible ambassadors, not just paid advertisers.

Creator Storefronts for Seamless Shopping
Reduce friction by linking social content to shoppable pages tied to specific campaigns or creators.

‍

Final Thoughts

Google’s AI-powered search isn’t ending brand visibility, it’s evolving it. But this evolution demands a new strategy.

The days of relying solely on SEO are over. In today’s ecosystem, discovery is social, trust is creator-led, and conversion happens across multiple channels often outside of Google’s reach.

Brands should absolutely aim to appear in AI search results - but they must be discoverable, credible, and shoppable beyond them.