This holiday shopping season, American consumers are experiencing a fundamental shift in their shopping habits. Adobe's latest shopping report indicates that traffic from chatbots and AI search engines for retailers could surge by as much as 520% compared to 2024, with more consumers turning to large language models rather than Google searches to find gifts, deals, and promotions.

OpenAI has taken the lead in this trend. Last week, ChatGPT developers announced a significant partnership with Walmart, allowing users to complete shopping directly within the chat window, marking the official arrival of the AI shopping era.

Facing this major change, retailers must re-evaluate their online marketing strategies. Search engine optimization (SEO), which has dominated digital marketing for decades, is being replaced by "generative engine optimization" (GEO). Market research estimates that this emerging field will reach nearly $850 million in value this year.

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AI Preferences Differ Greatly from Search Engines

Although many GEO consultants come from the SEO field, increasing evidence shows that the type of information presented by chatbots differs significantly from traditional search engines. Imri Marcus, CEO of GEO company Brandlight, revealed that the overlap between Google's top links and sources cited by AI tools has dropped from 70% to less than 20%.

Search engines usually favor lengthy content — such as long blog posts before recipes on cooking websites. However, Marcus pointed out that chatbots prefer concise, structured formats, such as bullet points and FAQ pages. "FAQs can answer 100 different questions, rather than just one article promoting a brand," he explained, "which provides 100 different opportunities for AI engines to showcase."

Questions asked to chatbots are often very specific, so it is crucial for companies to publish detailed information. "No one would ask ChatGPT, 'Is General Motors a good company?'" Marcus said. "They would ask which has a longer range, the Chevrolet Silverado or Blazer. Creating more specific content leads to better results because the questions themselves are more specific."

Big Brands Are Actively Building Strategies

These insights are reshaping the marketing strategies of Brandlight's clients, including well-known brands such as LG, Estée Lauder, and Anthem. Brian Franz, Chief Technology, Data, and Analytics Officer at Estée Lauder, said, "The way models consume content varies. We need to ensure product information and authoritative sources provide data for the models." When asked if they considered partnering with OpenAI to sell products within the chat window, Franz responded without hesitation, "Absolutely."

Currently, brands focus more on consumer awareness than direct sales conversions. Companies need to ensure that when users ask, "What should I apply after a sunburn?" their products appear in the answer. "We are in a very early learning phase, and it feels like it's about to explode," Franz said. "I think we shouldn't overemphasize the return on investment for specific content."