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Study Shows LLM Conversion Rate Is 9x Better — AEO Is Coming
Study Shows LLM Conversion Rate Is 9x Better — AEO Is Coming

Forbes

time12 hours ago

  • Business
  • Forbes

Study Shows LLM Conversion Rate Is 9x Better — AEO Is Coming

Bing, OpenAI, Microsoft and Google logos displayed on a phone screen and a laptop keyboard are seen ... More in this multiple exposure illustration photo taken in Krakow, Poland on February 8, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images) Some predict that by 2028, more people will discover products and information through large language models (LLMs) like ChatGPT and Gemini than through traditional search engines. But based on research I conducted with Cornell Master's students, that shift is happening much faster. LLM-driven traffic is already starting to outperform traditional search — not in volume, but in value. Traffic from LLMs converts at nearly 9x higher rates than traditional search. This is the biggest disruption to search since the dawn of the internet. If you're a brand or publisher, now is the time to adapt your SEO playbook. Oh, there is no 'S' — it's now called Answer Engine Optimization (AEO) Back in January, I predicted that traditional search was on its way out. Just six months later, the shift is already visible. In my UX research, I classify shoppers into three categories: It's easy to see how all these needs can now be met through a conversation with LLMs like ChatGPT, Claude, Gemini, or Perplexity. Say you're looking for an isotonic drink powder. Instead of scanning blogs, watching videos, or scrolling endlessly, you now ask ChatGPT — and it responds with direct recommendations: Ask about ketogenic-friendly options, and it will go even further — offering details on ingredients, comparisons, and alternatives. Staff Sergeant Alex Mackinnon from the Royal Electrical and Mechanical Engineers holds a sachet of ... More isotonic drink, Tuesday September 20, 2005, at Bramley Training Area near Basingstoke, where the Army announced it will be including the sports drink in its ration packs. The powdered drink will be incorporated in 24-hour ration packs after the its producer, GlaxoSmithKline, won the three-year contract in a tendering process. See PA Story DEFENCE Drink. PRESS ASSOCIATION Photo. Photo credit should read: Chris Ison/PA (Photo by Chris Ison - PA Images/PA Images via Getty Images) This isn't search — it's advice. And when users follow those links or act on suggestions, they convert at dramatically higher rates compared to normal search traffic. In my studies, LLM-generated traffic behaves more like a personal recommendation than a keyword query. But here's the catch: if your brand isn't listed, you're invisible. The customer won't even consider you. Good numbers are hard to come by. LLM traffic, like what comes from ChatGPT, doesn't always leave a clean trail — users might just copy and paste a product name and head to Amazon or another site. To get better data, we created a ChatGPT-style experience inside the site search of several e-commerce stores. In A/B tests, we compared regular keyword search with an AI-guided, conversational search experience. The difference was stunning: almost 9x higher conversion. Yes, nine times. But it's not just conversion that's changing — the way people search is evolving, too. In the past, users typed one or two words like 'camera.' Now, when they're shown more natural and detailed responses, they respond in kind. We're seeing queries like: 'What's a compact camera for wildlife photography that fits in a carry-on?' Semrush backs this up with broader data: In our interviews, shoppers said they felt more 'understood' and 'better about their purchase.' It didn't feel like a search engine. It felt like getting advice from a knowledgeable friend. If you scale that behavior to external LLM traffic — not just on-site — the value of that traffic already rivals what you get from SEO. For brands, this means it's time to rethink how you show up in these conversations. That's what AEO — Answer Engine Optimization — is all about. Brands need to act. If you're not being cited by LLMs, you're becoming increasingly invisible. To get picked up by an LLM, you need to understand how these models learn from content. Masking in ML Training LLMs are pattern-completion engines. I often use the example of 'Life is like a box of ___' in my online certificate from Cornell. Correct. The answer is Chocolate. Machines learn the right answer through trial and error. This approach is called masking. To show up in an LLM's response, your content needs to become part of its masked training data. LLMs look for authoritative, helpful, and authentic content. Since they predict the next word in a conversation with a user, they favor content written in a conversational or Q&A format. For brands a new playbook is emerging AEO. I outlined all what brands need to know. AEO is just the beginning. Two even bigger shifts are on the horizon — and both will deeply impact how brands show up in the age of AI: Paid Ads in LLMs and Model Context Protocol and agents that act on behalf of the LLM. The future is already underway. Ping me on LinkedIn if you want to continue the conversation.

Google's AI Shift: Travel Marketing Disruption Is Coming Fast
Google's AI Shift: Travel Marketing Disruption Is Coming Fast

Skift

time09-06-2025

  • Business
  • Skift

Google's AI Shift: Travel Marketing Disruption Is Coming Fast

At Skift Research, we think travel leaders need to be a little Google-obsessed. It's one of the most important drivers of bookings, and our data shows Google is undergoing a real-time AI transformation with massive implications for the industry. Google has been a critical part of the tourism marketing funnel for decades. Now, as the search giant reinvents itself for the AI era, the downstream impact on the entire travel industry could be dramatic. Skift Research's latest research report – AI, Google, and the Shift from Keywords to Context in Travel – tracks how Google is embedding AI tools into its search platform and what it means for travel marketers. In a 2023 study, Skift laid out four key areas where generative AI could impact the travel industry. We believed AI would first impact internal tools and customer support, and there have been a slew of product launches in those areas. But we also predicted the most profound impact would be in search, though it would t

Perplexity AI Reports Explosive Growth as Users Look for Browser Alternatives
Perplexity AI Reports Explosive Growth as Users Look for Browser Alternatives

Globe and Mail

time07-06-2025

  • Business
  • Globe and Mail

Perplexity AI Reports Explosive Growth as Users Look for Browser Alternatives

Perplexity's AI-powered search engine is growing quickly, with CEO Aravind Srinivas reporting a 20% month-over-month increase and 780 million queries in May, according to TechCrunch. Speaking at the Bloomberg Tech Summit, Srinivas said that the platform could hit 1 billion weekly queries if growth continues. He also argued that internet users are looking for fresh alternatives to legacy browsers like Google's (GOOGL) Chrome, and that integrated search tools in a browser can drive even higher engagement. Confident Investing Starts Here: As a result, the company is preparing to launch Comet, which is a new agentic search engine that can help complete tasks for users. In addition, Srinivas noted on X that Comet will soon include features such as meeting recordings, transcription, and search, although these will not be available in the initial release. Nevertheless, Perplexity is working hard to polish the product, with a release expected in about three to five weeks. It is also worth noting that Perplexity is backed by investors such as Nvidia (NVDA) and Amazon (AMZN) founder Jeff Bezos, and is reportedly closing a funding round that would value it at $14 billion, up from $9 billion in December. Moreover, the search engine recently added a new feature that allows in-chat purchases via PayPal (PYPL) or Venmo. Still, despite Perplexity's growth, Google still dominates the market with about 90% global market share, followed by Microsoft's (MSFT) Bing at around 4%. Which Stock Is the Better Buy? Turning to Wall Street, out of the stocks mentioned above, analysts think that NVDA stock has the most room to run. In fact, NVDA's average price target of $172.36 per share implies more than 21% upside potential. On the other hand, analysts expect the least from MSFT stock, as its average price target of $514.27 equates to a gain of 9.2%. See more NVDA analyst ratings Disclaimer & Disclosure Report an Issue

Perplexity received 780 million queries last month, CEO says
Perplexity received 780 million queries last month, CEO says

TechCrunch

time05-06-2025

  • Business
  • TechCrunch

Perplexity received 780 million queries last month, CEO says

Perplexity received 780 million queries in May, CEO Aravind Srinivas shared on stage at Bloomberg's Tech Summit on Thursday. Srinivas said that the AI search engine is seeing more than 20% growth month-over-month. 'Give it a year, we'll be doing, like, a billion queries a week if we can sustain this growth rate,' Srinivas said. 'And that's pretty impressive because the first day in 2022, we did 3,000 queries, just one single day. So from there to doing 30 million queries a day now, it's been phenomenal growth.' Srinivas went on to note that the same growth trajectory is possible, especially with the new Comet browser that it's working on. 'If people are in the browser, it's infinite retention,' he said. 'Everything in the search bar, everything on the new tab page, everything you're doing on the sidecar, any of the pages you're in, these are all going to be extra queries per active user, as well as seeking new users who just are tired of legacy browsers, like Chrome. I think that's going to be the way to grow over the coming year.' Srinivas said the reason Perplexity is developing Comet is to shift the role of AI from simply providing answers to actually completing actions on your behalf. He explained that when you get an AI-powered answer, it's essentially four or five searches in one. On the other hand, AI performing an action would be getting an entire browsing session done with one prompt. 'You really need to actually have a browser and hybridize the compute on the client and the server side in the most seamless way possible,' he said. 'And that calls for rethinking the whole browser.' He went on to explain that Perplexity isn't thinking of Comet as 'yet another browser,' but as a 'cognitive operating system.' Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW 'It'll be there for you every time, anytime, for work or life, as a system on the side, or like, just going and doing browsing sessions for you,' Srinivas said. 'And I think that'll fundamentally make us rethink how we even think about the internet. Like, earlier we would browse the internet, but now people are increasingly living on the internet. Like a lot of our life actually exists there. And if you want to build a proactive, personalized AI, it needs to live together with you, and that's why we need to rethink the browser entirely.' While the company hasn't revealed too much about the browser, Srinivas said in April that one reason Perplexity is developing its own browser is to track user activity beyond its own app so that it can sell premium ads, which would essentially mirror what Google quietly did to become the giant it is today. It's currently unknown when exactly Comet will launch, but Srinivas previously said on X that it will launch in the coming weeks.

Exclusive-Qwant asks French watchdog to take interim action against Microsoft, sources say
Exclusive-Qwant asks French watchdog to take interim action against Microsoft, sources say

CNA

time03-06-2025

  • Business
  • CNA

Exclusive-Qwant asks French watchdog to take interim action against Microsoft, sources say

BRUSSELS :Qwant has asked France's antitrust regulator to take action against Microsoft for allegedly driving down the quality of the French search engine's results via Microsoft's Bing platform, people with direct knowledge of the matter said. Qwant, which has historically relied on Microsoft's Bing platform, wants the regulator to take interim action against the U.S. tech giant while investigating its complaint, the sources said. The French regulator has sought feedback from other search engines and will likely decide by September whether to take interim action and also whether to open a formal investigation into Microsoft, one of the people said. Competition enforcers only take interim action if there is evidence that a company abuses its market power and has caused serious and immediate harm to the complainant. The French competition enforcer and Qwant declined to comment. "This complaint lacks merit. We are fully cooperating with the Autorite's investigation," a Microsoft spokesperson said, referring to the French watchdog. Smaller European search engines typically rely on their bigger rivals' back-end technology to deliver search and news results. Microsoft is a major player in the search-engine syndication sector but its smaller rivals fear the company will discontinue the service to their detriment. Companies risk fines of as much as 10 per cent of their global annual turnover for breaching French antitrust rules.

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