Why AEO is Overhyped

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Careers, Business, Marketing

4.6 • 1.3K Ratings

🗓️ 11 December 2025

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Growth Newsletter: https://levelingup.beehiiv.com/subscribe Need marketing help? Visit: https://www.singlegrain.com/ and https://npdigital.com/ Want to recruit great marketers? Find them here: https://marketingschool.io/hire In this episode, Neil and Eric debate whether answer engine optimization AEO is overhyped, breaking down Ahrefs data on ChatGPT vs Google traffic, why search still drives most discovery, and how to think about AI search optimization across ChatGPT, Gemini, Perplexity, and more. They share real AI ROI examples from Goldman Sachs research, talk LLM use cases for marketing, sales, and ops, discuss AI's impact on jobs, and reveal their favorite AI stocks and winning marketing formula heading into 2026. Key takeaways: • AEO vs SEO, why AI search is overhyped now but essential long term. • Real-world AI ROI from JP Morgan, UPS, Target, Chipotle, and more. • How Neil and Eric use ChatGPT, Gemini, Perplexity, and other LLMs to scale marketing. Chapters: 00:00 AEO vs SEO hype 01:02 ChatGPT vs Google traffic share 02:40 AEO short-term vs. long-term 05:55 LLM platform use cases 08:47 Real AI ROI case studies 11:02 AI, jobs, and 2027 outlook 12:59 Favorite AI stocks to watch 15:02 Hiring AI native marketers 17:16 2026 marketing experimentation playbook 𝗔𝗕𝗢𝗨𝗧 𝗧𝗛𝗘 𝗖𝗛𝗔𝗡𝗡𝗘𝗟 Welcome to Marketing School, one of the top business podcasts with over 61 million downloads. Each episode delivers actionable marketing tips and strategies from two entrepreneurs who truly practice what they preach. The show is hosted by Eric Siu, founder of Leveling Up and Single Grain, and Neil Patel, co-founder of Neil Patel Digital and recognized by Forbes as a Top 10 Marketer. 🎙️ Learn More About the Hosts Eric Siu – Leveling Up: https://www.youtube.com/@LevelingUpOfficial Neil Patel: https://www.youtube.com/@neilpatel 📩 Free Resources Growth Newsletter: https://levelingup.beehiiv.com/subscribe Ubersuggest: https://www.ubersuggest.com/ Answer The Public: https://www.answerthepublic.com/ ✅ Subscribe for Daily Marketing Insights!

Transcript

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0:00.0	So we're talking about SEO.
0:01.8	We might as well talk about why I think AEO is overhyped because if you look at the ATRFs, ATRF just posted yesterday at SEO company, chat GPD traffic is flat in November and you look at Gemini 3. Oh, they're starting to kind of take their, their users a little bit. Are you talking about chat GPT referral traffic or the traffic for chat GPD.com? On what the first one is traffic to chatchipD.com. The second piece is referral.
0:23.5	I don't think referral traffic has changed that much. for chat gpt.com. On what, the first one is traffic to chatchipd.com.
0:21.3	The second piece is referral. I don't think referral traffic has changed that much. So yeah. So when you're saying chat GPT traffic is flat from ATRFs, they're measuring the traffic going to chat gptu. Correct. Correct. Yeah. Okay. Yeah. And so what, like, 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
0:39.0	not even 1% of traffic for chat chabit.
0:40.6	It's 0.25% of web traffic is chat chbt.
0:43.5	And I'm like, and I remember talking to, you know, a pretty significant company a couple
0:48.4	weeks ago.
0:49.4	And like, the reason is 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
0:54.9	42%.
0:55.6	We're not saying search traffic is going to remain that way forever, but I do think right now
0:59.5	people are over-allocating, and the game is actually search everywhere optimization, not
1:04.0	just like, not just, you know, AEO.
1:06.8	Yeah.
1:08.0	If you knew the data I knew for chat GVT, you would be shocked.
1:12.8	Shocked in a good way or bad way?
1:16.0	Bad way.
1:17.3	So like even less.
1:19.7	Yeah, I signed an NDA.
1:21.3	It's one of the largest corporations in the world.
1:24.0	Yeah.
1:25.1	And we'll just leave it at this is overhyped. Yes?
	...

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