Agencies Invest in AI-Powered Services
What happened
Marketing agencies are positioning themselves as leaders in AI by investing in new capabilities. Hannah Cranston Media expanded its "Generative Engine Optimization" services, while The Shipyard made a strategic investment in an AI for brand discovery. These moves show how agencies are embedding AI to create new, high-margin service offerings.
Why it matters
- Generative Engine Optimization (GEO) is an emerging practice distinct from traditional SEO; it aims to get brands cited as sources in AI-generated answers from platforms like ChatGPT and Perplexity, rather than just ranking high on a results page. - Hannah Cranston Media's GEO strategy is built on data suggesting 94% of links cited by AI come from non-paid earned media, positioning PR as a foundational element for AI visibility. - The Shipyard's investment in FancyAI makes it the first agency to offer clients a patent-pending GEO technology platform, which it is initially deploying internally to customize the tool for real-world use cases. - FancyAI, the company The Shipyard invested in, is a 16-person business/productivity software company based in Austin, Texas. - This shift is happening as more than 800 million people now turn to AI for answers weekly, fundamentally changing how consumers discover brands and information. - Agencies are adopting AI to reinvent their operating models, with some analysts predicting "agentic AI" will handle over one-fifth of marketing's total workload within the next three years. - The integration of AI is expected to automate a percentage of agency jobs, prompting a re-evaluation of traditional agency compensation models that are tied to direct labor and billable hours. - As part of its GEO services, Hannah Cranston Media has achieved results like a 400% increase in website traffic for a client whose educational content was surfaced by AI after a competitor was negatively featured in a study.
Key numbers
- Hannah Cranston Media's GEO strategy is built on data suggesting 94% of links cited by AI come from non-paid earned media, positioning PR as a foundational element for AI visibility.
- FancyAI, the company The Shipyard invested in, is a 16-person business/productivity software company based in Austin, Texas.
- This shift is happening as more than 800 million people now turn to AI for answers weekly, fundamentally changing how consumers discover brands and information.
- As part of its GEO services, Hannah Cranston Media has achieved results like a 400% increase in website traffic for a client whose educational content was surfaced by AI after a competitor was negatively featured in a study.
What happens next
- Generative Engine Optimization (GEO) is an emerging practice distinct from traditional SEO; it aims to get brands cited as sources in AI-generated answers from platforms like ChatGPT and Perplexity, rather than just ranking high on a results page.
- Agencies are adopting AI to reinvent their operating models, with some analysts predicting "agentic AI" will handle over one-fifth of marketing's total workload within the next three years.
- The integration of AI is expected to automate a percentage of agency jobs, prompting a re-evaluation of traditional agency compensation models that are tied to direct labor and billable hours.
Quick answers
What happened in Agencies Invest in AI-Powered Services?
Marketing agencies are positioning themselves as leaders in AI by investing in new capabilities. Hannah Cranston Media expanded its "Generative Engine Optimization" services, while The Shipyard made a strategic investment in an AI for brand discovery. These moves show how agencies are embedding AI to create new, high-margin service offerings.
Why does Agencies Invest in AI-Powered Services matter?
Generative Engine Optimization (GEO) is an emerging practice distinct from traditional SEO; it aims to get brands cited as sources in AI-generated answers from platforms like ChatGPT and Perplexity, rather than just ranking high on a results page. Hannah Cranston Media's GEO strategy is built on data suggesting 94% of links cited by AI come from non-paid earned media, positioning PR as a foundational element for AI visibility. The Shipyard's investment in FancyAI makes it the first agency to offer clients a patent-pending GEO technology platform, which it is initially deploying internally to customize the tool for real-world use cases. FancyAI, the company The Shipyard invested in, is a 16-person business/productivity software company based in Austin, Texas. This shift is happening as more than 800 million people now turn to AI for answers weekly, fundamentally changing how consumers discover brands and information. Agencies are adopting AI to reinvent their operating models, with some analysts predicting "agentic AI" will handle over one-fifth of marketing's total workload within the next three years. The integration of AI is expected to automate a percentage of agency jobs, prompting a re-evaluation of traditional agency compensation models that are tied to direct labor and billable hours. As part of its GEO services, Hannah Cranston Media has achieved results like a 400% increase in website traffic for a client whose educational content was surfaced by AI after a competitor was negatively featured in a study.
