AEO and GEO Markets Experience Growth Due to ChatGPT Optimization Needs, Yet Overstated Sales Strategies Undermine Trust

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Expanding Landscape of Answer Engine Optimization and Generative Engine Optimization

The burgeoning markets for Answer Engine Optimization (AEO) and Generative Engine Optimization (GEO) are redefining how businesses, products, and content achieve visibility within generative AI responses.

However, the absence of unified performance metrics has spawned a slew of inflated sales assertions from certain vendors, raising questions regarding the market’s integrity.

As reported by industry insiders on the 13th, AEO encompasses the process of optimizing data to enhance the likelihood that specific enterprises, products, or content are featured prominently in direct answers generated by AI or search platforms.

In contrast, GEO exclusively targets outputs from generative AI systems, such as ChatGPT, Gemini, and Perplexity. Within industry discourse, these two terms are frequently conflated.

Unlike traditional Search Engine Optimization (SEO), which concentrates on enhancing the visibility of discrete web pages within search results across platforms like Google or Naver, AEO and GEO emphasize the commendation of brands or content within the synthesized answers produced by generative AI, which amalgamates data from diverse sources.

As the AI sector burgeons, the demand for related services is escalating. Data from South Korean freelance platform Kmong indicates that AI marketing represented 12% of all AI service requests during the first quarter of this year, marking a five-percentage-point increase from the previous year’s 7%.

Notably, requests for AEO and GEO aimed at improving visibility on AI-centric search engines were overwhelmingly prevalent.

International investment in this domain is also gaining momentum. A survey conducted in April by the US digital marketing firm Conductor revealed that a staggering 94% of over 250 Chief Marketing Officers (CMOs) and digital executives from major US corporations intend to augment their AEO investments this year.

Shifting Search Paradigms Accelerate AEO and GEO Demand

The swift ascent of the AEO and GEO market is inextricably linked to a significant transformation in information-seeking behaviors, with users transitioning from conventional portal searches to generative AI-based inquiries.

According to the “2025 Value-Added Telecommunications Service Survey” released by South Korea’s Ministry of Science and ICT in June, 60% of generative AI users reported supplanting over half of their traditional search activities with AI.

An analysis conducted by the Korea Information Society Development Institute (KISDI) further determined that “everyday information search” was the predominant motive for utilizing generative AI, representing 42.5% of responses.

In terms of service usage, ChatGPT led the way with 68.1% of respondents, closely followed by Gemini at 13.8%.

The same survey revealed that the AI service experience rates (allowing for multiple responses) stood at 41.8% for ChatGPT and 9.8% for Gemini, affirming their rankings as first and second, respectively.

When Microsoft’s Copilot (2.2%) is included, these three foreign services accounted for a collective experience rate of 53.8%, significantly overshadowing Naver’s Clova X, which reached just 2.0%.

In subscription rates, ChatGPT maintained a notable advantage at 7.3%, followed by Gemini (0.9%), Copilot (0.2%), and Clova X (0.2%).

This trend underscores the dominance of foreign platforms even among dedicated users who invest in subscriptions, surpassing casual trial users.

Widespread Exaggeration in Sales Practices—”Offering Paid Article Placements”

With the market’s rapid acceleration, the emergence of dubious sales techniques has become apparent.

Recently, a GEO agency approached journalists from South Korean media outlets with propositions to compensate them per article published about their clients.

Under this arrangement, the agency would craft press releases concerning clients, seek to have journalists render these into articles, and provide payment upon confirming publication. Moreover, conditions were set for the continuity of the articles online.

The agency inquired about journalists’ standard fees for paid article placements, expressing a keen interest in pursuing ongoing collaborations contingent on client demands.

Its representatives claimed to be managing GEO operations for several prominent South Korean firms.

The practice of offering direct compensation to individual journalists for article placement stands starkly opposed to established journalistic and editorial ethics.

Concerns are mounting that if paid placements proliferate under the guise of AEO and GEO, they could jeopardize editorial independence and erode the trustworthiness of news content.

Moreover, the fields of AEO and GEO suffer from a lack of clear, objective performance metrics. The variability of generative AI outputs means that similar inquiries may elicit different responses, influenced by model, user, and conversational context.

Isolating the impact of specific content or external articles on a response proves equally challenging, complicating the validation of claims regarding guaranteed exposure effects.

In this complex landscape, some AEO and GEO agencies are reportedly touting their optimization expertise derived from repeated query inputs into AI systems.

While this approach may elucidate certain trends, it cannot assure “top exposure” for particular brands or products in AI-generated answers.

The opaque nature of AI companies’ answer-generation algorithms makes it unfeasible to universally apply existing search optimization methodologies.

Separation of Advertising and Organic Responses by AI Companies

In a separate vein, generative AI firms are delineating their services to create a clear distinction between organic responses and paid advertisements.

Earlier this month, OpenAI launched a specialized advertising division in South Korea, ensuring that ChatGPT ads are showcased in distinct sections from regular responses.

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Notably, expenditure on advertisements does not sway the content of answers or the endorsements of specific brands.

“AEO vendors typically lack direct access to the internal algorithms of AI systems when delivering their services, leading them to reverse-engineer based on observable outcomes—’ if you do this, you might attain exposure,'” remarked an industry insider.

“Assertions that particular methods or budget allocations can guarantee AI answer exposure should be approached with discernment.”

Additionally, South Korean enterprises are initiating their own AI ventures, supported by a government-led initiative aimed at establishing an independent AI foundational model.

However, analysts caution that challenging the entrenched global tech giants, which have already captured significant market share within the shifting generative AI landscape, presents a formidable hurdle due to disparities in service recognition and investment levels.

Both Naver and Daum are intensifying efforts to bolster their AI search offerings, leading some analysts to contend that the future competitive dynamics of the search market remain too unpredictable to ascertain.

Source link: Finance.biggo.com.

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Ranjana Banerjee

I’m Ranjana Banerjee, Creative Content Manager at RSWEBSOLS in Kolkata, India, with 10+ years of experience in blogging, SEO, digital marketing, and e-commerce. I create high-quality content and SEO strategies that boost traffic, improve rankings, and help businesses grow in competitive markets.
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