The AEO Panic Is Here — And It's The Best Thing To Happen To SEO

6 Jul 2026 · 17 min · 8 chapters

Ask about this episode

Ask anything about it. ChatGPT or Claude reads this page and answers with the times it was said.

Connect VO and ask about every podcast you hear, including the moments you saved. Add to ChatGPT · Add to Claude

In short

The episode argues that the “AEO panic” (AI/LLM-driven optimization) is actually beneficial for SEO budgets and for clarifying ownership of search work. Eli Schwartz’s claim: “the AEO panic is the best thing that happened to SEO budgets in years,” because CMOs now have to decide who owns AEO. Guests discuss that AEO success is hard to ROI-track since AI often answers without clicks; they cite that most queries in ChatGPT/Gemini lead to brand/direct site visits and AI-assisted conversions. They warn against misconceptions like paying tools (e.g., Profound) to “solve it” via AI listicles; they compare it to early keyword-stuffing SEO and stress a human-in-the-loop.

Notable examples

query “fanout” patterns increasing brand citations (YouTube/LinkedIn/Twitter), and Sierra Interactive/Will Reynolds’ observations.

Guest backgrounds

Eli Schwartz is a well-known SEO figure; Neil (the co-host) has worked in SEO embedded with product teams; Will Reynolds is referenced for AEO fanout research.

Key claims

AEO budgets are rising but not yet massive; SEO budgets remain far larger (about 11x) due to ROI and existing enterprise SEO infrastructure.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

Understanding the AEO Panic

0:26 to 1:29

Discussion on the current panic regarding AEO and its impact on SEO budgets.

“So right now there's this big panic with AEO right now.”

SEO's Relationship with Product Teams

1:29 to 2:25

Exploration of how SEO is viewed within product teams and its evolution over time.

“Well, let's first go back to the product thing that you mentioned in which when you first started doing SEO for companies, you would have to deal with product.”

Tracking Success in AEO

2:25 to 3:39

Challenges in tracking AEO success and how it relates to ROI.

“They're just either going directly to your website or they're Googling your name, brand name, and then clicking on your website.”

The Role of Content and AI in Marketing

3:39 to 6:49

Examining the misconceptions around AI tools in creating content and their effectiveness.

“So you have no idea how this ties in with your ROI, right?”

The Importance of Brand in AEO

6:49 to 8:21

Discussion on how brand presence affects AEO and the shift in digital marketing strategies.

“Just create 10 ,000 pages around this keyword.”

Insights on Marketing Budgets

8:21 to 11:05

Analysis of the differences in SEO and GEO budgets for enterprises and SMBs.

“which makes it actually, in my opinion, harder to manipulate in the long run.”

Evaluating LLM Tools and Their Effectiveness

11:05 to 14:00

Insights into various LLM tools used for tracking and their perceived effectiveness.

“It is very hard to get LLM budgets to be a million dollar plus at this point for GEO right now.”

Understanding Data Quality in SEO Tools

14:00 to 14:47

Explore the differences in data quality among SEO tools and the importance of setup.

“They're just like the data is cleaner and it's better.”
Hear the part that matters, and keep it.Open this episode in VO. Double tap your headphones to save a moment as you listen.
Get VO free

Transcript

Automatic transcript. May contain errors.

0:00Does your experience with AI sound a little something like this? You've been prompting for 20 minutes. The output is polished, confident, and completely useless. That's what happens when AI doesn't know anything about your business. HubSpot's AI works with your actual customer data, every interaction and every signal your team has generated over time. So instead of prompting and hoping, you ask once and ship it. Check out HubSpot.com, the agentic customer platform for growing businesses. All right.

0:26Eric Siu:So right now there's this big panic with AEO right now. People are panicking about AEO. SEO budgets are going down overall. And this guy Eli Schwartz, I know, well-known in the SEO space, he tweeted this, says, the AEO panic is the best thing that happened to SEO budgets in years. Every CMO right now is trying to figure out who owns AEO. Good. Let them fight about it. For years, SEO got stuck to reporting to marketing, treating like finishing department on assembly line. Structure never made sense because real SEO lives inside the product. You know what's interesting, Neil, when I worked at a few companies doing SEO early in my career, actually, when I first met you, I think I was 24 years old and I would sit with the product people and they would treat me like a piece of garbage, right?

1:04Eric Siu:I was on the, I was the SEO strategist sitting in product meetings and helping with the product. Right. And I thought I was helping with product. They, everything I said, they waved me off like I was garbage and I loved it. But point is, I think now the way, even, I don't know if you're seeing this with your outbound, but when we reach out to people for outbound for AEO. Everyone's like, yeah, we definitely need AEO. We have our SEO agency for this. Yeah, but we need AEO, AEO. So let's talk about this AEO panic right now.

1:29Neil Patel:Well, let's first go back to the product thing that you mentioned in which when you first started doing SEO for companies, you would have to deal with product. We found something similar for most of the tech companies, like the tech startups, the ones who grew, became unicorns. For traditional businesses, like a Procter & Gamble or a Unilever, we don't see that and we've never seen that but even today we still see a lot of seo sitting under product for really tech focused companies that are engineering led and product led and just

2:02Eric Siu:to be clear this is me working on a company that was engineering led just so everyone knows yeah

2:06Neil Patel:yeah i figured that as well once you said that um we haven't at this moment because we get enough leads globally our leads are down like everyone but the quality of the leads are higher and what we're seeing right now is we're not really seeing a shift in seo budgets yet we're seeing aeo budgets increase we're not seeing aeo budgets being massive yet because every single enterprise business and even most smbs and mid-market businesses they all ask the same question track the roy and you and i both know this dude when people search on, you know, the chat GPT or Gemini, majority of the times they're not clicking on over.

2:56Neil Patel:They're just either going directly to your website or they're Googling your name, brand name, and then clicking on your website. But the conversion is really AI assisted or heavily AI driven. The tracking is just very difficult. Even with SEO, the tracking is not perfect either with Yeah.

3:16Eric Siu:So by the way, when we say what the AEO panic is, when we are fielding these calls or let's say we're talking to marketing executives, it's more so the AEO panic is, oh my God, our competitors are ranking so on AEO. They have so much more share of voice. What do we do? What do we do? And then when they get on a phone call with you, it's like, yeah, you know, don't worry. We got the SEO stuff covered, right? And, but it's like AEO. And then we're like, okay, so to your point, how are you supposed to track success on this? Oh yeah, we just want more share of voice, more share of voice. I'm like, great.

3:42Eric Siu:So you have no idea how this ties in with your ROI, right? Yes. But it also doesn't help. Like if you're selling this stuff, it doesn't help you to say, oh, AEO and SEO go hand in hand and SEO is still very much the foundation. They don't want to hear it. So the panic is right now, this is this new thing. And it seems like, but they don't want to accept that they're still very tightly together.

4:02Neil Patel:We are seeing a shift in it. A lot of our pitches were pure GEO focused because customers wanted it to be pure GEO focused. we're seeing right now if we don't incorporate technical seo in the geo pitches we're much more likely to lose it and we're seeing it in our data we're also seeing uh customers having confusion in the whole space kind of like seo you know 15 20 years ago in which companies are coming to us and they're saying yeah can we just you know so when you're quoting them and and you're creating a proposal for them and a presentation and breaking down what you're going to do. They're just like, can we just pay a tool like Profound?

4:45Neil Patel:And it just does it for me. And we pay, you know,$1 ,000 a month or$50 ,000 a year, whatever their pricing is. And I'm like, have you looked at Profound? They're like, yeah, you know, it'll track our mentions on these LLMs, compare it to the competitors, look at the sentiment. And it also helps you get mentioned. And I was like, so how does it help you get mentioned there? and I've used the tool, so I know. And they typically say, oh, it can help you create articles and you can just publish them on your website. And it's like, cool. So if everyone can publish listicles on their website, because majority of the time they're thinking listicles, if everyone can publish listicles on the website, is that easy for you to do or hard for you to do?

5:25Neil Patel:And they're like, it's pretty easy. I'm like, yeah, even AA helps you with that, right? They're like, yeah. So if everyone can do this, how well do you think this strategy really works? And they're like, oh, good point. I'm like, this is like SEO back in the days where you just put keywords on your page and then you magically rank. And if you also look at the different versions of flavors of ChatGPT or Perplexity or any of these LLMs, they go through waves in which a percentage of their time, like I was with the RightSonic founder, Sam, and he had some data on a few of the different models of ChatGPT, but it went from ChatGPT barely looking at your website to the commands being roughly 20 % that they're doing site colon commands so they're looking for content on your website to then they're getting reduced.

6:09Neil Patel:So it goes through waves. But the max that he's seen it from the data that he presented to me was roughly around 20%, which means roughly 80 % of the time they're looking for content on other people's websites to determine who should be mentioned for what keywords or prompts in what regions for when, right? And that means just, oh, I'm going to use Profound. And I'm not trying to talk trash on Profound, but it's the misconception that customers have. Like, oh, I'm trying to use Profound and I'm just going to create some AI articles and boom, this is solved. I'm like, good luck. It's just like saying SEO is about putting keywords on your page and doing technical SEO and you'll rank for everything.

6:49Neil Patel:Just create 10 ,000 pages around this keyword.

6:51Eric Siu:That's why a lot of people are saying that when you, software alone is just one piece of it, but this is why services and software are converging where you'd still need a human loop. even if you're running like one of our creator agents, Picasso, it can spin up a bunch of ads, but it doesn't matter if it's still crap. If you're spinning up a bunch of slop, it doesn't matter. Same thing with the written content, whether you're using something like a WriteSonic or using something like a ClickFlow, right? You still need a human in a loop. But this is interesting to me. I actually pulled this up from Sierra Interactive.

7:18Eric Siu:So they're showing that ChatGPT 5.5's fanout patterns reveal the importance of brand. So brand is playing way more into AEO. And thank God we've been creating content for a while now. And so Will Reynolds tweeted this, but he's basically saying because you have more query fanouts now, meaning that when you're searching in ChatGPT, it'll show you like, hey, these are the 15 queries that we use. Now it's maybe up to 30 or so. It's the same thing with Google. What it's showing now is it will show your YouTube, right? By the way, YouTube's showing up, I think, in 25 % of searches or something like that now, a lot more than before.

7:51Neil Patel:For ChatGPT? Gemini.

7:53Eric Siu:Just Gemini, yeah. Or just search in general. But this, I mean, there's a lot in here. But the thing that you need to keep in mind now is that LinkedIn is getting cited. It'll look at your Twitter as well. It'll look at your YouTube as well. So it's no longer just an SEO thing. It's good. It's actually good that everything's kind of converging a little bit.

8:11Neil Patel:Yeah. And it's becoming where what is said about you on the whole web matters more than what's said about you on your own website, which makes it actually, in my opinion, harder to manipulate in the long run. The second thing is, is companies that focus their marketing on one or two channels will lose in the long run compared to companies that take an omni-channel approach. Even a multi-channel approach is better than, you know, just taking one or two channels. But ideally, you want an omni-channel approach.

8:41Eric Siu:Yeah, I'm just looking at this. This is interesting because Will Reynolds likes to say, well, if you want more query fan outs, you have to build more fans. Okay. So people care about the fan out level, which means that doing podcasts like this. The reason why, you know, we spend the time to, you know, meet in person to do this podcast one, it's it's it. We're on YouTube. We get more clips as well. But speaking at conferences, OK, that helps to social media. All these things that were harder to measure before is now it's converging more now. And so it's but here's what they're calling out, which we might disagree with.

9:14Eric Siu:It's like he's like notice that we aren't seeing the usual suspects here with the list goal strategies. I still think they kind of work right now, but I do think they're getting abused still. So I think they're getting more and more less. You're seeing less effectiveness, but they still work.

9:28Neil Patel:Yeah. We did an interesting analysis internally on our leads from GEO versus SEO for the people who are looking for different service items. What budgets do you think are higher, SEO or GEO? GEO. We're actually seeing the opposite of SEO. What do you think the difference is, if you had to guess? It's large. It's large. 100, 150%. it's around 11x of a difference. Wow. So SEO budgets are still around 11x difference or higher than GEO. And I'll tell you why. When you look at most local searches, do you believe they do local searches mainly on a traditional Google search or they're doing it more on ChatGPT?

10:11Neil Patel:Traditional Google. Yes. We're seeing the same data as well. I'm not saying that can't change over time, but still people are using Google for traditional local searches. and the majority of the people who are optimizing for llms and going really aggressive we're seeing them to tend to be enterprises enterprises have massive seo budgets because it's been consistent it's also understood it's understood they've been doing it for a long time they have big seo teams geo whether it's mid-market smb or enterprise i don't it's and i don't believe this is going to continue in the long run, but the biggest pushback we get isn't that they should do it.

10:55Neil Patel:They understand everyone uses these LLMs. That's obvious. You don't even have to convince them on that. It's again, goes back to the ROI question. So people are just really hesitant. I'm not saying you can't get 50 grand or a hundred grand or even two, 300 grand. It is very hard to get LLM budgets to be a million dollar plus at this point for GEO right now. I do think that'll change in a few

11:17Eric Siu:years so here's what i'll call out too so this and then we can move on so they're basically he's testing out agency queries okay so like what's the best ppc agency or whatever so who shows up alongside seer um this is eli uh no this is now will reynolds okay yeah so you got seer plus ipole rank um that that they should that shows up the most and then amciv profound mike king np digital number five on this thing um for for what type of queries the second what's what's the best type of ppc agency something is it a specific ppc or i think it's he was trying like a handful of these and um okay so he said here um implied okay these are two brands treats uh sears pure set in this prompt talk about agencies okay yeah so the agencies only agencies i see here neil in this top 10 is you have BrainLabs, Tenuity, MP Digital, and No Good.

12:13Eric Siu:So there's like four agencies here. And maybe five, six, Emsiv, iPollRank.

12:18Neil Patel:iPollRank is agency.

12:19Eric Siu:iPollRank is Mike King, who creates a lot of content. And Lily Ray is Emsiv. Oh, I didn't know that. So I think their posting helps the agencies. Got it. Well, iPollRank is an agency. Yeah, correct. And then Seer, was Seer in the list or not? I mean, this is Seer plus who shows up alongside Seer most of the time. Oh, got it. So 26 of 26 times, it's going to be iPoll, Rank, and Sierra. And then 23 of 26 times, it's Sierra plus Ansip. So you have Mike King and then Lily Ray. And then you have Profound, which is number three, which is interesting.

12:47Neil Patel:Yes. Profound is going for the done for you. Even though they're not an agency, they will help you with all the other love stuff.

12:56Eric Siu:I think eventually they're all going to just become services. I think Air Ops does some services too. I think Profound is going to have to do it. Because same conversations that you're having. when people are like oh yeah you know we're about to sign up with profound as if it's gonna like they're gonna solve all their problems right and again i'm not saying profound's a bad tool i think it's a great tool um but it's like yeah we're about to sign with profound like i think we're

13:16Neil Patel:covered there right i'm like are you so yeah and we're also seeing a huge shift with customers of all sizes not wanting to pay the same amount that they used to have to pay for llm tracking yeah they're like this is expensive a lot of people now have these features i think it's just given

13:33Eric Siu:Yeah.

13:34Neil Patel:Who's the one who gave it for free? Was it Amplitude who released a free version?

13:38Eric Siu:Yeah, but it wasn't that good. Yeah. Yeah. We have a free version of it, but it's limited because the costs are just so high. Yeah. But I mean, Profound has a good data set. So that's why people go to it as kind of the main one.

13:49Neil Patel:It's not the data set. I think they have the brand recognition. The data set is you're just going and crawling anytime people put in prompts.

13:55Eric Siu:I'm saying that from hearing from other SEOs that have used a bunch of different ones. They're just like the data is cleaner and it's better. And when I've used it, I was like, I couldn't tell the difference if I'm being honest myself. But what I hear from a lot of SEOs is like, it's higher quality.

14:09Neil Patel:So we've tested out all the tools. We've paid for majority of these LLM tools, including Ahrefs, SEMrush, negotiated on it. When people say Profound's data set is cleaner, what people don't realize is if you sign up for Profound, their team will set up everything for you. and then within 24 to 48 hours, you start seeing reports. The big difference from what we see isn't the data sets, it is how thorough they are in tracking. So if you have a good agency and they set it up for you, no matter what tool you use, the data is pretty much the same. Anyway, that's it for today, guys, and we'll see you tomorrow.

14:58. .

From the publisher

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

Eric opens with Eli Schwartz's viral take that the AEO panic is the best thing to happen to SEO budgets in years, and he and Neil unpack why every CMO is suddenly fighting over who owns answer engine optimization. They dig into why brands keep asking to just buy a tool like Profound, why publishing AI listicles is the new keyword stuffing, and how ChatGPT actually only crawls your own site a fraction of the time. Neil shares real agency data on the gap between SEO and GEO budgets that surprises even Eric, then they test which agencies the LLMs actually cite, from Seer and Wil Reynolds to iPullRank. They land on why brand, an omni-channel presence, and a human in the loop still decide who wins. The panic is real, but the money is not moving where you think.

Key takeaways
◾AEO and SEO are far more tightly linked than the panic suggests
◾LLMs weigh what the whole web says about you, not just your own site
◾Buying a tracking tool is not a strategy when everyone can buy it too

Chapters
00:00 The AEO panic explained
01:04 When SEO lived inside product
01:55 Why SEO budgets aren't shifting yet
02:50 What the panic really is
03:37 Losing pitches without technical SEO
04:15 "Can't we just buy a tool?"
04:49 Why publishing listicles fails
06:26 Software and services converge
07:22 Query fanouts and getting cited everywhere
09:22 SEO vs GEO budgets: 11x apart
11:12 Testing the agency queries
12:42 Profound pivots to done-for-you
13:44 Is the data really cleaner?

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
Ubersuggest: https://www.ubersuggest.com/
Answer The Public: https://www.answerthepublic.com/

✅ Subscribe for Daily Marketing Insights!

More from Marketing School - Digital Marketing and Online Marketing Tips

All 935 episodes
The AEO Panic Is Here — And It's The Best Thing To Happen To SEOMarketing School - Digital Marketing and Online Marketing Tips · 17 min
Listen in VO