The Startup Ideas Podcast
The Startup Ideas Podcast

what the heck is GEO (AI search, rankings, $$$)

September 12, 2025

AI Summary

5 min read

What the Hell Is GEO? The Truth About AI Search Traffic

Cody Schneider doesn't mince words: "I think it's hype." That blunt assessment opens his explanation of GEO—generative engine optimization, or what most people just call AI search optimization. The reason is simple: Google searches are still growing at the same velocity as AI chat searches, if not faster. The obsession with GEO is partly a startup bubble phenomenon, where early adopters in software saw a massive spike in referral traffic from ChatGPT and assumed it was the future. But as Schneider points out, "GPT-5 launches, and people just get nuked on that as a source." The Tally founder's famous hockey-stick graph of ChatGPT referral traffic? It plummeted when OpenAI updated its search algorithm.

Who Actually Benefits from GEO

Schneider is clear about where GEO makes sense and where it doesn't. The key variable is the purchasing decision time horizon. GEO works when people use AI chat as a research tool before making a considered purchase—not for impulse buys. The reason is that AI chat users have already completed their buyer journey by the time they land on your site. They've compared options, read reviews, and educated themselves. So when they click through, they're ready to buy. Schneider has seen conversion rates of 10-20% from AI chat referrals, compared to the typical 1-2% from traditional search.

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What you'll learn

  • 1 (00:00) **What is GEO (AI Search)?** - The episode defines GEO as AI search (Perplexity, ChatGPT, Gemini) and explains why it's a hot topic for startups.
  • 2 (02:35) **Who GEO Actually Works For** - Two customer types where GEO drives high conversion rates.
  • 3 (08:19) **How AI Search Actually Works (The "Fanning" Process)** - A technical breakdown of how ChatGPT/Perplexity generates answers.
  • 4 (11:27) **The Core Strategy: Surface Area & Listicles** - To rank in AI search, you need to be included in the pages the AI scrapes.
  • 5 (12:50) **The Tool Stack & The Outreach Campaign** - How to find the URLs the AI references and get placed on them.
  • 6 (17:05) **The Reality Check: It's Just SEO + Influencer Marketing** - Cody debunks the hype and explains the sustainable approach.

+ Full timestamped outline available in the app

Show Notes

Join me as I chat with Cody Schneider about AI Search. Cody explains that while AI search (GEO) is generating buzz, it currently represents a small portion of overall search volume compared to traditional search engines. The value lies in highly qualified leads, with conversion rates of 10-40% from AI search traffic. To optimize for AI search, businesses need to identify which URLs are being referenced by AI for relevant queries and work to get their brand mentioned on those pages.

Timestamps:

00:00 - Intro

00:51 - What is GEO/AI search?

02:18 - Who GEO is most effective for?

08:16 - How AI search actually functions

12:31 - Tools and strategies for optimizing for AI search

16:45 - Why are people obsessed with GEO

19:56 - Discussion of available tracking tools

22:41 - Final Thoughts on AI Search and GEO

Key Points:

• GEO (AI Search) refers to search queries through AI platforms like Perplexity, ChatGPT, and Gemini

• AI search works by expanding user queries into multiple derivative searches, then scraping top Google results

• Most effective for businesses with long purchasing decision timelines (SaaS, local service businesses)

• Success requires getting your brand mentioned on multiple high-ranking pages that AI references

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