Marketers Shift Growing Shares of Search Spending to GEO

Why It Matters

The reallocation signals a strategic pivot toward AI‑centric discovery, forcing brands to invest in new visibility metrics and redefining ROI expectations in search marketing.

Key Takeaways

• 55% marketers allocate budget to generative engine optimization (GEO)
• GEO consumes 11‑20% of overall search spend
• Brands shifting half of SEO spend to GEO testing
• Pilot budgets suggested 1.5‑2× current search spend
• ROI metrics moving from clicks to brand salience

Pulse Analysis

The surge in generative engine optimization reflects a broader industry response to large‑language‑model (LLM) search interfaces that synthesize content from press releases, news feeds, and social platforms. Marketers recognize that traditional keyword‑centric SEO no longer guarantees prominence when AI agents curate answers. By investing in structured data, schema markup, and conversational content, brands aim to appear in the AI’s knowledge graph, capturing user intent before a click occurs. This shift is evident in the Scribewise report, where more than half of surveyed marketers earmarked funds for GEO, underscoring a rapid adoption curve.

Budget realignment is already tangible. Agencies such as VML and PMG advise clients to allocate 1.5‑to‑2 times their existing search spend toward GEO experiments, while Pawco’s 10% Q1 increase illustrates early‑stage testing. The reallocation often comes from existing SEO or performance‑media pools, meaning firms must balance classic content creation with AI‑focused initiatives like AEO partnerships and LLM‑friendly site enhancements. Measurement challenges arise because clicks are supplanted by softer signals—brand salience, mention rates, and inclusion in AI‑generated answers—making attribution less precise but still valuable for brand awareness.

Looking ahead, GEO is likely to become a staple of digital strategy rather than a niche experiment. Brands that embed rich, machine‑readable data and cultivate a presence across emerging conversational venues will enjoy higher visibility as AI agents evolve. While clear ROI remains elusive, the willingness to fund ambiguity signals confidence that AI‑driven search will dominate future consumer journeys. Companies that master the blend of SEO fundamentals and GEO tactics will secure a competitive edge in an increasingly AI‑first marketplace.