LLMs Set to Revolutionize Conversion Rates in Online Shopping: Enter AEO
Recent research indicates a significant shift in how people discover products and information. By 2028, large language models (LLMs) such as ChatGPT, Gemini, and Claude could surpass traditional search engines in driving product discovery. But this transformation is already underway. According to research conducted with Cornell Master’s students, traffic from LLMs is converting at nearly nine times the rate of traditional search. This is poised to be the biggest disruption in search since the advent of the internet itself.
The Shift from Search to LLM-Driven Discovery
The key finding from the research is that LLM-driven traffic not only outperforms traditional search in volume but also excels in value. LLMs offer a more personalized and conversational approach to finding products. For example, when searching for an isotonic drink powder, rather than scrolling through blogs or watching videos, users can ask an LLM directly. The response includes specific product recommendations, comparisons, and alternative options. This conversational model feels more like receiving advice from a knowledgeable friend rather than performing a traditional search query.
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As a result, when users act on these LLM recommendations, conversion rates are significantly higher than those for conventional search results. This change in user behavior has given rise to a new approach in digital marketing called Answer Engine Optimization (AEO), where the focus is on optimizing for answers provided by AI models rather than just traditional keyword-based search results.
What Brands Need to Know About AEO
A/B tests within e-commerce sites have shown that LLM-generated traffic leads to longer sessions and a greater sense of personal engagement. Users spend more time interacting with LLMs and are more likely to act on the recommendations, viewing them as personalized and human-like. As the LLM-driven approach grows, brands must adapt their marketing strategies to ensure their products are part of these AI-powered conversations. AEO will be crucial for brands seeking to maintain visibility in an increasingly AI-driven digital landscape.
