AI Shifts Marketing from SEO to LMO for Chatbot Optimization

In digital marketing, AI is driving a shift from SEO to Language Model Optimization (LMO), optimizing content for chatbots like ChatGPT, as highlighted by ONAR CEO Claude Zdanow. Early adopters will capture market share and deeper engagement, while laggards face obsolescence in AI-driven discovery.
AI Shifts Marketing from SEO to LMO for Chatbot Optimization
Written by Miles Bennet

In the rapidly evolving world of digital marketing, a seismic shift is underway as artificial intelligence reshapes how businesses connect with consumers. Claude Zdanow, CEO of ONAR Holding Corporation, a Miami-based marketing-technology firm, recently shared insights in an exclusive interview that highlights this transformation. According to Zdanow, traditional search engine optimization (SEO) is giving way to a new paradigm: Language Model Optimization (LMO). This change, driven by the rise of generative AI tools like ChatGPT and Google’s Gemini, promises to redefine online visibility and commerce.

Zdanow, whose company operates a network of performance-driven agencies, emphasized that early adopters of LMO strategies stand to gain the most. “AI is not just a tool; it’s becoming the primary interface for discovery and purchasing,” he told Invezz in the interview published on August 19, 2025. He pointed to data from a Forrester report indicating that 91% of U.S. advertising agencies are already integrating generative AI to enhance operations and personalize campaigns.

The Rise of AI-Driven Discovery

This transition from SEO to LMO stems from fundamental changes in user behavior. Consumers increasingly turn to AI chatbots for queries, bypassing traditional search engines. Zdanow explained that while SEO focused on ranking high in search results, LMO involves optimizing content to be effectively cited and utilized by large language models (LLMs). “It’s about ensuring your brand’s narrative is woven into the AI’s responses,” he said, drawing from his keynote at GenAi Week Silicon Valley 2025, where he presented “From SEO to LMO: How AI Language Models Are Rewriting the Rules of AI-Driven Digital Commerce,” as reported by Seeking Alpha on July 10, 2025.

Industry data supports this view. Posts on X, formerly Twitter, from influencers like a16z on May 28, 2025, discuss how Generative Engine Optimization (GEO)—a related concept—is supplanting SEO, emphasizing the need for brands to be cited by AI rather than just ranked in searches. Similarly, Cloudflare CEO Matthew Prince noted in a May 9, 2025, post the decline in website referrals due to AI answering queries directly, reducing clicks to original sources.

Strategies for Early Movers

For businesses, adapting to LMO means rethinking content creation. Zdanow advises focusing on high-quality, entity-rich data that LLMs can easily parse and reference. ONAR, under his leadership, has been pioneering these approaches, leveraging AI to deliver measurable results for clients. In a March 13, 2025, appearance on the “Big Biz Show,” detailed in a PR Newswire release, Zdanow outlined his vision for AI-integrated marketing, which has propelled ONAR’s growth.

Early movers, he argues, will capture market share as AI platforms become gatekeepers of information. A June 24, 2025, X post by SEO expert Matt Diggity highlights six methods, including entity optimization, to dominate AI-driven searches, aligning with Zdanow’s predictions. This sentiment echoes in a recent AiThority.com article from August 19, 2025, where AI SEO consultant Olga Zarr stresses that while fundamentals remain key, AI tools will account for 10% of SEO strategies in 2025.

Challenges and Opportunities Ahead

However, this shift isn’t without hurdles. Critics worry about reduced traffic to websites as AI provides zero-click answers, a concern raised in Neil Patel’s December 23, 2024, X post on digital marketing trends. Zdanow counters that LMO offers opportunities for deeper engagement, such as personalized recommendations that drive conversions directly through AI interfaces.

ONAR’s trajectory exemplifies this potential. From its roots in music production—Zdanow founded Stadiumred Studios, associated with 30 Grammy nominations, as noted in a June 10, 2025, InvestorWire profile—to a publicly traded entity (OTCQB: ONAR), the company is positioning itself at the forefront. Zdanow’s presentations, including at NobleCon20 in December 2024, per ONAR’s website, underscore his role as a thought leader.

Implications for the Broader Market

As AI adoption accelerates, the benefits for early LMO adopters could be substantial. Zdanow predicts that by 2026, LMO will be as essential as SEO was a decade ago. A July 10, 2025, Yahoo Finance article on his GenAi Week talk quotes him saying traditional SEO is “increasingly ineffective” in an AI-reshaped commerce environment.

Industry insiders are taking note. Posts on X from Outgrow and Onimod Global on August 13, 2025, proclaim GEO as the future, urging marketers to optimize for AI mindshare. This collective buzz suggests a consensus: those who pivot now to LMO will lead in the AI era, while laggards risk obsolescence in a world where discovery happens through conversation, not clicks.

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