The Potential of Generative Engine Optimization for Marketing Agencies

SUMMARY: The potential of generative engine optimization represents the biggest agency opportunity since Google Ads launched. The market will hit $108 billion by 2032, and agencies are positioned to capture 70% of the value just like they did with SEO. Traffic drops of 30-70% from AI Overviews are already happening, but smart agency owners see this as their blue ocean moment. Three months ago, 6 companies were working on AI search optimization.  Today? 24 companies and counting (as of writing). Smart marketing agency owners see what's coming.

The Numbers Don't Lie: We're Watching History Repeat

I've been tracking this space closely, and the acceleration is crazy.

When I first started working on AI search optimization, there were exactly 6 startups in the entire space.

That was three months ago.

There's been a 300% increase in competitors in just 90 days.

But here's what most people miss: this isn't about competition. It's about validation.

The global AI search engines market is projected to hit $43.63 billion in 2025 and reach $108.88 billion by 2032. McKinsey research shows generative AI could contribute up to $4.4 trillion in annual global productivity, with marketing being one of the primary business functions seeing adoption.

When I talk to investors now, they're not asking if AI search will happen.

They're asking how fast we can capture market share before everyone else figures it out.

The Generative AI in Marketing market alone is expanding from $2.6 billion in 2023 to $41.1 billion by 2033. That's a 31.8% compound annual growth rate.

Those numbers tell a story. 

And if you've been in the agency game long enough, you've seen this story before.

Why Marketing Agencies Hold All the Cards in Generative Engine Optimization

Here's a number that changed everything for me: The SEO market is worth $80 billion per year. But only $8 billion gets captured by tech companies selling software.

Where does the other $72 billion go? Marketing agencies and in-house SEO teams. 

I heard this at the GEO Conference 2025, and it aligned perfectly with what we were seeing at Visto in the market. 

Marketing agencies are constantly being asked: ‘how do I show up in AI answers’.

SEO is hard.

It requires specific expertise, constant attention, and strategic thinking. Most companies don't want to build that capability in-house. They farm it out to agencies.

The same pattern is happening with the potential of generative engine optimization, except faster.

Some of our agency customers are already upselling GEO to their SEO packages, adding an extra $4000 MRR to their business. 

The enterprise companies we’re already having conversations about GEO with are fascinating..

Mid-market companies are asking questions. Even early-stage tech startups are thinking: "Can we just bypass Google and get traffic through AI search?"

But here's the thing: almost none of them want to become AI search experts themselves.

They want someone else to figure it out. Someone who understands the landscape, has the tools, and can deliver results.

That someone is you.

The Traffic Cliff Most Agencies Don't See Coming

I've been tracking what happens to organic search traffic since Google rolled out AI Overviews. The data is brutal.

For certain keywords where AI overview now sits at the top, organic traffic decreases are hitting 30% to 70%.

These aren't long-tail keywords we're talking about.

These are head keywords. The big ones that drive serious traffic.

When someone searches for information, Google now shows an AI-generated overview right at the top of results.

Users get their answer without clicking through to your client's website.

Your client's traffic disappears. Their leads dry up. And they start asking uncomfortable questions about the ROI of their SEO investment.

But here's what's really happening: the traffic isn't disappearing. It's moving to a new channel.

People are still searching.

They're just doing it in ChatGPT, Perplexity, Gemini, and Google AI Overviews. They're getting recommendations, making decisions, and taking action based on what AI tells them.

The question isn't whether you should start optimizing for AI search. It's whether you want to be ahead of the curve or scrambling to catch up when your clients' traffic disappears.

The Blue Ocean Moment: Unlocking the Potential of Generative Engine Optimization

Marketing agencies are seeing something they haven't seen in years: a true blue ocean opportunity.

Here's what I hear when I talk to agency owners: "Our clients keep asking us, 'What can you do for me with AI search optimization?' And honestly, we don't have a good answer."

That's the opportunity.

Right now, most agencies are in the same boat. They know something big is happening, but they don't know how to respond. They're trying to figure it out without visibility, without tools, and without a roadmap.

The agencies that solve this problem first will have a 6-12 month head start before the market catches up.

In agency terms, that's an eternity.

Think about the early days of social media marketing or Google Ads.

The agencies that moved fast built their entire businesses on being the experts in these new channels. They became the go-to solution when companies needed help navigating unfamiliar territory.

The potential of generative engine optimization is that moment again.

Except this time, the stakes are higher and the window is smaller.

What Forward-Thinking Agency Owners Are Doing Now

The smartest agency owners I talk to aren't waiting for perfect clarity.

They're taking action based on what they can see coming.

First, they're developing internal frameworks for AI search strategy. They're understanding what success looks like, setting goals, and getting their teams aligned on this new channel.

Second, they're starting conversations with existing clients. Not to sell them something, but to educate them about what's happening in the search landscape. They're positioning themselves as the experts who saw this shift coming.

Third, they're experimenting. They're testing different approaches to influencing AI search results. They're learning what works and what doesn't. They're building expertise while the competition is still trying to understand the basics.

The reality is this: CMOs are panicking because they have a blind spot in a new channel. CEOs are being asked by boards to do something AI-related. This pressure is coming from the very top of organizations.

The agencies that can provide clarity, strategy, and results in AI search optimization will capture value in ways we haven't seen since the early days of digital marketing.

Frequently Asked Questions

How big is this opportunity really?

The numbers I share with investors keep growing. We're looking at a market north of $8 billion for GEO specifically, but that's just the beginning. When you consider that all of commerce will eventually involve AI recommendations, we're talking about influencing every purchase decision made through AI platforms.

When will AI search become mainstream?

It already is. ChatGPT processes over 1.7 billion searches monthly. Google AI Overviews are expanding rapidly. The shift is happening now, not in some distant future.

What should agencies prioritize first?

Start with visibility. Understand how your clients currently show up in AI search results across ChatGPT, Perplexity, and Google AI Overviews. You need to see the baseline before you can improve it.

How does generative engine optimization differ from traditional SEO?

Traditional SEO is about ranking and relevance. You optimize for keywords, build authority, and climb rankings. Generative engine optimization is about search plus AI processing. Large language models analyze search results and decide what to include in their responses. The rules are completely different.

Should agencies worry about AI replacing them?

The opposite. AI search creates more complexity, not less. Clients need experts who understand how to influence multiple AI platforms, track performance across different models, and optimize content for AI processing. The agencies that embrace this will distance themselves from competitors who are still playing yesterday's game.

What's the investment required to get started in GEO?

Unlike traditional SEO where you need massive content libraries and link building campaigns, GEO is more about understanding the systems and optimizing strategically. The barrier to entry is knowledge, not budget. The agencies investing in learning this now will have the expertise to charge premium rates when demand explodes.

How do you explain the potential of generative engine optimization to clients who don't understand AI search?

Start with their traffic data. Show them which keywords are already being impacted by AI Overviews. Then demonstrate how their competitors might appear in ChatGPT or Perplexity results. Most clients understand the problem once they see their brand missing from AI recommendations while competitors get mentioned.

The bottom line: Everyone keeps calling GEO "SEO 2.0." That's wrong. This isn't an evolution of SEO. It's an entirely new channel with new rules, new opportunities, and new ways to capture value.

The agencies that understand this first will build the next generation of marketing empires.

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