SearchLab study says car dealers lag as Google search shifts to AI and local visibility

SearchLab Digital says new research across 2,260 dealership profiles and more than 300 automotive searches shows many car dealers are not set up for how Google now surfaces local businesses and AI-generated answers. The findings point to a growing advantage for dealers that get the basics right and build content for AI Overviews, not just traditional rankings.

Why it matters: - Google is changing how car shoppers find dealers, and the research says many dealerships are missing the signals Google now rewards. - The gap between top dealers and everyone else could affect map-pack visibility, AI Overview citations, and traffic from shoppers closer to a purchase decision. - Dealers that adapt may gain outsized local exposure in markets where competition is still thin.

What happened: - SearchLab Digital released findings from two automotive search studies over the past year. - The first study reviewed 2,260 dealership Google Business Profiles across 20 U.S. cities. - The second study analyzed more than 300 automotive search queries to see how Google’s AI Overviews appear and which dealerships get cited. - SearchLab Digital is a boutique local SEO and PPC agency headquartered in Glenview, Illinois.

The details: - In the Google Business Profile study, 20% of dealerships made a category mistake that suppresses local visibility. - Top-ranked dealers had nearly twice as many reviews as lower-ranked competitors. - Small improvements in reviews, GBP categories, schema markup, and department profiles produced outsized local ranking gains. - SearchLab said the performance gap is mostly operational, not technical. - In the AI Overview study, AI Overviews appeared in 29% of informational and commercial automotive queries. - AI Overviews appeared in only 3% of transactional queries. - Dealerships were cited as a top-3 source in 100% of commercial and transactional overviews. - Organic ranking position showed little correlation with being selected as an AI Overview citation. - Content quality, intent match, and depth mattered more than keyword frequency or word count. - For “near me” searches, AI Overviews appeared when only one dealership of a given brand existed in a local market. - Dane Saville, SearchLab Digital’s head of search and AI visibility, said consumers are asking more complex questions and Google is responding with more AI-generated answers and local recommendations.

Between the lines: - The research suggests traditional SEO alone is no longer enough for automotive retail. - Google appears to be rewarding businesses that are easier to trust, easier to understand, and better structured across local and AI-driven search surfaces. - Dealers in less crowded markets may have an easier path to visibility if they optimize early.

What’s next: - SearchLab recommends dealerships audit and correct GBP categories, department listings, and review profiles. - The agency also urges dealers to build content around real consumer intent rather than keyword volume. - SearchLab says AI Overview visibility should be treated as its own channel with a separate content strategy. - Dealers are being told to track branded traffic, organic share of conversions, and local visibility instead of relying on rankings alone. - SearchLab linked to the 2025 Google Business Profile Report - Automotive Edition and AI Overviews in Automotive Research.

The bottom line: - The dealers that win in Google’s next phase of search will likely be the ones that fix local fundamentals and build content that answers real car-buyer questions.