🤨 What the heck is AEO

ISSUE #273

If you've checked Google Analytics lately, you've probably noticed something... interesting.

ChatGPT is now showing up as a referral source. Maybe it's driving a trickle of traffic, maybe it's becoming a meaningful channel.

Either way, you're probably wondering: what the heck is happening here, and can I actually influence this?

In this week's roundup, we cover:

  • What is AEO, and how are early movers winning - how Webflow saw 6x higher conversion rates from LLM traffic.

  • A practical implementation checklist - the specific technical and content changes that get you mentioned in LLM answers.

  • Ready-to-use prompts - tested prompt templates that generate AEO-optimized content, competitive analysis, and technical implementations.

Let's dive in!

Ian at SaaS Weekly

THIS WEEK IN SAAS
Trends across the industry

🔄 Marketing Framework | HubSpot ditched the funnel for something better
INBOUND wrapped up earlier this month with plenty of GTM takeaways (GTM Now), but the biggest shift came from HubSpot itself: it's replacing the funnel with "The Loop" - a new framework for driving growth in the AI era (HubSpot).

The Loop is built for off-site discovery: brand voice that AI can recognize, content distributed where customers actually spend time, and real-time iteration instead of quarterly reviews.

Why this matters: About 60% of Google searches now end in zero clicks - users get answers from AI overviews without ever visiting your website. The new Loop optimizes for getting cited in those AI responses.

🤖 Platform Strategy | Agents are becoming the workflow engine
Three major SaaS vendors launched full agent products this month: Adobe shipped Agent Orchestrator with six domain agents(CIO), Box launched Extract and Automate for content workflows (ITPro), and HubSpot expanded Breeze across all hubs (Small Business Trends).

Why this matters: We're starting to see how platform companies (e.g., systems of record like HubSpot) are extending their workflow interface with orchestration, beyond simple AI automation. The added agentic layer becomes the differentiator, enabled by the system itself.

💸 Finance Talk | Why Oracle stock be popping off
Oracle's stock jumped 43% this past week - its best day since 1992 - despite missing on both revenue and profit (Only CFO Newsletter). The trigger? A 359% increase in RPO (huh?) driven by a $300B OpenAI deal.

RPO (Remaining Performance Obligations) measures contracted but not yet recognized revenue - your guaranteed pipeline.

And Oracle's backlog hit $455B, with cloud revenue projected to grow from $18B to $144B over five years.

Why this matters: ARR (growth) has been the SaaS north star for a decade. Oracle's market reaction hints that backlog visibility might matter more than quarterly beats.

Worth watching if late-stage SaaS companies start emphasizing contracted pipeline durability alongside traditional metrics.

BUILDING THE PLAYBOOK
Frameworks and resources to design your growth play

Answer Engine Optimization (AEO) Strategy

🏆 Answer Engine Optimization | 1:11:54 listen | Lenny's Podcast
Why AEO is so important: The second-biggest shift in search

In theory: Discovery is fundamentally changing for B2B SaaS companies.

Instead of clicking through to high-ranking pages, buyers now get their answers directly from zero-click Google summaries and ChatGPT responses (1:15). The shift represents what one 18-year SEO veteran calls the second-biggest change in search history (5:55).

Why? The optimization mechanism is changing. Traditional SEO rewards ranking position - get to number one and you win the traffic.

But when LLMs summarize multiple sources into a single answer, frequency of citation matters more than ranking position (10:45). If ten sources mention your product and only three mention your competitor, you're more likely to be the recommended solution.

This creates what's being called Answer Engine Optimization - optimizing to show up in LLM citations rather than search rankings (6:44).

The impact can be substantial when executed properly. Webflow saw 6x higher conversion rates from LLM traffic compared to traditional Google search traffic (14:47).

Users arrive pre-qualified after having detailed conversations about their specific needs, rather than just browsing through search results. For Webflow, LLMs now drive 8% of total signups, making it a top-tier acquisition channel (46:53).

In practice:

  • Transform competitor keywords into conversational questions (29:32). Take every term your competitors bid on in paid search, feed them into ChatGPT, and ask it to generate natural questions people would ask.

    "CRM software" becomes "how do I track leads without losing deals in the handoff?"

  • Optimize your help center like it's your homepage (1:00:54). Move documentation from subdomains to subdirectories, cross-link aggressively between articles.

    Then, create content for every technical integration question your sales team gets asked.

    The long tail of AEO is massive - 25-word queries versus Google's 6-word average (13:16).

  • Build authentic citations through community participation (16:45). Find Reddit threads where developers discuss your problem space.

    Disclose your affiliation, then provide genuinely useful technical advice.

    One authentic comment beats a hundred AI-generated blog posts, which studies show don't rank anyway (54:49).

My take: The speed of execution matters here. The slower you take to adopt an AEO strategy, the harder it becomes to penetrate citation landscapes as they mature.

Once enterprises start optimizing systematically for answer engines, breaking into established citation networks becomes exponentially more difficult. The companies establishing authentic expertise now will own the answers that define their categories later.

🔧 Answer Engine Optimization | 15 min read | GTM Strategist
A tactical checklist for ranking across answer engines

In theory: Answer Engine Optimization works through "tokenization" - when your brand appears frequently across multiple channels, LLMs become statistically more likely to include you in responses.

To maximize citations, you can structure your content in specific ways optimized for LLM consumption. One agency grew a client's daily traffic 5x while landing top AI Overview mentions within 24 hours using this distributed approach.

In practice:

  • Foundation Setup: Structure content for chunk-level retrieval with self-contained sections, clear H2/H3 headings, and single-idea paragraphs.

    Move documentation from subdomains to subdirectories, remove JavaScript-rendered content, and implement internal linking between blog posts and product pages to create solid site architecture.

  • Authority Building: Position yourself as a subject matter expert by providing quotes to industry publications covering your space.

    Target websites that already rank for your key questions - if they're writing about "best CRM software," get them to mention your product through relationship building and strategic outreach.

  • Content Optimization: Write for answer synthesis starting with concise, direct summaries AI can extract.

    Use natural Q&A format addressing specific customer questions from sales calls. Add unique value citing real-world experience and data that can't be found elsewhere.

🔩 Answer Engine Optimization | 20 min read | StartupGTM
Example prompts for AEO content transformation

In theory: Most marketers approach AI prompts like search queries - vague requests that produce generic outputs.

The key is to optimize for AI extractability from the start by structuring the format of different role-based prompts.

In practice:

  • Long-tail Query Generation: Generate 30-50 conversational search queries categorized by intent with semantic entities formatted as JSON arrays for content planning tools.

  • FAQ Creation: Produce high-impact FAQ entries with 40-50 word answers, H3 headers, and bulleted credibility facts optimized for featured snippets.

  • People Also Ask Mining: Extract top PAA questions grouped by intent with answer-first paragraphs and structured evidence for comprehensive topic coverage.

  • Competitor Analysis: Analyze competitor AI-generated answers for structural patterns, citation benchmarks, and content gaps to create superior outlines.

  • Schema Markup Generation: Generate valid JSON-LD schema for FAQPage, HowTo, and Product markup with proper formatting and Google compliance.

TOP READS FROM LAST WEEK

  1. OpenAI acquires Statsig for $1.1B (GeekWire)

  2. 🎬 The three elements behind every memorable B2B campaign (SaaS Weekly)

  3. Why everyone’s switching to AI credits (Growth Unhinged)

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