AI Marketing Terms Explained: A Glossary for Small Business Owners

Cut through the jargon and make smarter decisions in today's AI-driven landscape.

Marketing has always been full of buzzwords, but lately, it feels like someone spilled a bowl of alphabet soup. Between SEO, AEO, GEO, AIO, and LLMs, it can be hard to keep up, especially if you're running a business and wearing a dozen other hats.

As a marketing consultant working with small businesses here in Vermont, I created this glossary to help you understand the current marketing landscape in a way that makes sense. You'll walk away with a working knowledge of the most important terms, so the next time someone throws one of these acronyms your way, you won't look at them like they have five heads.

What Is SEO? (Search Engine Optimization)

Definition: SEO is the process of helping your website show up in traditional search engine results, like Google.

Why it matters: There's a reason you hear Mark Cuban talk about SEO on Shark Tank. Showing up on the first page of Google can mean the difference between a full inbox and crickets.

Real-life tip: Including specific phrases like "gluten-free cupcakes Vermont" and using alt text, internal links, and meta descriptions helps search engines understand and rank your content.

And if you're tilting your head at the screen wondering what those things are, no worries. I can walk you through them, too. Just ask!

What Is Local SEO? (Formerly Known as Geographic Optimization)

Definition: A subset of SEO focused on improving visibility in local search results like "coffee shop in Bristol" or "emergency plumber near me."

Why it matters: People searching locally tend to act fast once they find what they need.

Real-life tip: Claim your Google Business Profile (aka GBP—yes, another acronym), collect reviews, embed your location on your website, and use city or region names in your content and page titles.

Heads up: Local SEO was once called GEO (for geographic optimization), but today, GEO has a very different meaning: Generative Engine Optimization. Keep reading 👇

What Is GEO? (Generative Engine Optimization)

Definition: The practice of optimizing your content to show up in AI-generated search results from tools like ChatGPT, Claude, Perplexity, or Google's AI Overviews (formerly called SGE).

Why it matters: These tools don't just link to websites. They generate full answers. If your content isn't structured for AI discovery, it may get skipped entirely.

Real-life tip: Include clear, conversational answers to common questions, cite trustworthy sources, and structure your content well (headings, bullet points, FAQs). Businesses with well-organized content are more likely to show up in AI-generated responses.

What Is AEO? (Answer Engine Optimization)

Definition: AEO is a strategy for structuring your content so it can be selected for featured snippets, voice search results, or instant answers in traditional search engines.

Why it matters: These "answer boxes" take up prime real estate and can dramatically increase your site's visibility and authority.

Real-life tip: Use headers like "Top 5 Tips…" or "How to..." and answer specific questions where you have authority. Google prioritizes clear, skimmable content that meets its E-E-A-T guidelines (experience, expertise, authoritativeness, and trustworthiness). Stick to what you know, and make it useful.

What Is an LLM? (Large Language Model)

Definition: LLMs are a type of AI trained to understand and generate human-like text. It powers tools like ChatGPT, Claude, and Gemini.

Why it matters: LLMs are changing how people search, consume, and create content. Businesses can use them to generate blog drafts, summarize reviews, create product descriptions, or power chatbots.

Real-life tip: Some small businesses use LLM-powered bots to answer FAQs, book appointments, or recommend services, saving time and improving the customer experience.

What Is AIO? (AI Optimization)

Definition:

• AI Optimization refers to using AI tools to support and scale your marketing efforts while maintaining your brand voice.

• AI Overview (used by Google) is their generative AI feature that provides summarized answers in search results. You may also see this called SGE (Search Generative Experience).

Why it matters: As AI continues to influence how people find and engage with content, understanding both meanings of AIO is important. AI Optimization helps you streamline your work, while Google's AI Overview determines how your business might show up (or get skipped) in search results.

Real-life tip: Use AI tools like ChatGPT or Gemini to create rough drafts, brainstorm ideas, or repurpose content faster. You'll also want to structure your website content for visibility in Google's AI-generated answers by clearly answering common questions, maintaining up-to-date info, and using headings, bullet points, and FAQs.

What Is RAG? (Retrieval-Augmented Generation)

Definition: RAG is an AI method that pulls in your business's unique data (like FAQs, brochures, or product details) before generating a response.

Why it matters: It allows for more accurate, brand-specific answers to offer. Leveraging RAG can be great for customer service bots or internal tools.

Real-life tip: Some businesses use RAG-based bots in their DMs or on their websites to answer questions like "What's on tap today?" or "Are dogs allowed on the patio?" without needing to jump in manually.

Understand The Terms, Own the Strategy

You don't need to memorize every acronym. But understanding the basics helps you:

• Ask smarter questions

• Avoid being oversold on flashy tools

• Invest in strategies that actually grow your business

As a Vermont-based marketing consultant, I help small business owners like you make sense of today's digital marketing landscape. Whether you're exploring AI tools, need help with Local SEO, or want to improve your website experience, I'm here to support you.

Let's grab coffee or hop on a call. We can chat about what all this means for your business and where it might make sense to focus next.

Talk soon.