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Marketing School

Why AEO is Overhyped

20 min episode · 2 min read

Episode

20 min

Read time

2 min

Topics

Career Growth, Productivity, Investing

AI-Generated Summary

Key Takeaways

  • AEO Traffic Reality: ChatGPT represents only 0.25% of web traffic compared to search's 42% share, making current AEO investment allocation disproportionate to actual returns. Focus resources on traditional search optimization while monitoring AEO development for future scaling opportunities.
  • Multi-Platform Strategy: Users employ different AI platforms for distinct purposes, similar to social media usage patterns. ChatGPT serves personal queries with memory features, Google handles business and tax research, Perplexity excels at deep research, and Claude processes code and data analysis tasks effectively.
  • Corporate AI ROI: JP Morgan reduces headcount growth while expanding revenue, Rocket Mortgage cuts loan processing from four hours to fifteen minutes, and UPS saves 38 million liters of fuel through AI implementation. Significant cost savings emerge in 2027 as companies complete deployment phases.
  • AI Hiring Filter: Candidates spending $500 to $2000 monthly on AI tools demonstrate high agency and bias to action. Interview questions about AI usage, monthly spending, and practical applications reveal self-motivated employees who bring innovation rather than requiring extensive training investments.

What It Covers

Neil and Eric debate whether Answer Engine Optimization is overhyped in the short term, examining ChatGPT's flat traffic growth, real AI ROI from major corporations, and why marketers should prioritize traditional search optimization.

Key Questions Answered

  • AEO Traffic Reality: ChatGPT represents only 0.25% of web traffic compared to search's 42% share, making current AEO investment allocation disproportionate to actual returns. Focus resources on traditional search optimization while monitoring AEO development for future scaling opportunities.
  • Multi-Platform Strategy: Users employ different AI platforms for distinct purposes, similar to social media usage patterns. ChatGPT serves personal queries with memory features, Google handles business and tax research, Perplexity excels at deep research, and Claude processes code and data analysis tasks effectively.
  • Corporate AI ROI: JP Morgan reduces headcount growth while expanding revenue, Rocket Mortgage cuts loan processing from four hours to fifteen minutes, and UPS saves 38 million liters of fuel through AI implementation. Significant cost savings emerge in 2027 as companies complete deployment phases.
  • AI Hiring Filter: Candidates spending $500 to $2000 monthly on AI tools demonstrate high agency and bias to action. Interview questions about AI usage, monthly spending, and practical applications reveal self-motivated employees who bring innovation rather than requiring extensive training investments.

Notable Moment

One host reveals they signed an NDA with a major corporation showing shockingly low ChatGPT referral traffic data, confirming that revenue expectations from AEO significantly exceed current performance while long-term potential remains underestimated by most companies.

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Episode Transcript

So we we're talking about SEO. We might as well talk about why I think AEO is overhyped because if you look at the Ahrefs, Ahrefs just posted, yesterday, SEO company. Chat GB traffic is flat in November. And you look at Gemini three, oh, they're starting to kinda take their their their users a little bit. Are you talking about chat gbt referral traffic or the traffic for chatgbt.com? On what the first one is traffic to chatgbt.com. The second piece is, referral I don't think referral traffic has changed that much. So, yeah. So, so when you say chat gbt traffic is flat from Ahrefs, they're measuring the traffic going to chatgbt.com. Correct. Yeah. Okay. Yeah. And so what, like, I'm, I'm not saying don't do AEO. I think we get a lot of people asking us for AEO, but, the thing is I think it's, it's not even 1% of traffic for chat GB. It's 0.25% of web traffic is chat GBT. And I'm, I'm like, and I remember talking to, you know, pretty soon we became a couple of weeks ago and like the reason it's like, dude, if it's less than 1%, why is everyone just focusing on this brand new thing over here when search traffic is still 42%? We're not saying search traffic is going to remain that way forever. But I do think right now people are over allocating and, the game is actually search everywhere optimization, not just like not, not just, you know, AEO. Yeah. If you knew the data I knew for chat g v t, you would be shocked. Shocked in a good way or bad way? Bad way. So, like, even less. Yeah. I I signed the NDA. Okay. It's one of the largest corporations in the world. Yeah. And We'll just leave it at this is overhyped. Yes? I would I don't think it's actually overhyped. I think it's here to stay. Yeah. It's very powerful. I'm not talking about just the technology. I I'm also talking about as a marketing channel. Uh-huh. I think it's just early endings and people haven't figured out how to really monetize it. When I say overhype, hype is, like, for the short term in my mind. So it's it's hype it's overhype in the short term. I'm not saying it's not gonna work. We say this with AI in the beginning too in general. Yeah. I think AEO is underhyped in the long run and how few companies are focusing on it when they should. Yep. I think the revenue expectations from it in the short run are too, high. But I think in the long run, they're underestimated because Yeah. It doesn't matter who wins. You and I know this is the new format. You need to do SEO, AEO, whatever you wanna call it, AI SEO in the future to do well no matter which platform is gonna win. Yeah. And I think the platforms is not …

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Books, tools, and gear mentioned in this episode

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Tools

  • by OpenAI

    ChatGPT represents only 0.25% of web traffic compared to search's 42% share, making current AEO investment allocation disproportionate to actual returns.
  • by Perplexity AI

    Perplexity excels at deep research.
  • by Google

    Google handles business and tax research.
  • by Anthropic

    Claude processes code and data analysis tasks effectively.

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