Investment Analysis Report for GEO (Generative Engine Optimization)

Based on my research on the GEO concept and industrial chain analysis, the following is a comprehensive assessment of investment value and risks:

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GEO stands for

, a new marketing technology in the era of AI search. Its core logic is as follows: When consumers get used to asking AI assistants such as Doubao, DeepSeek, and Yuanbao questions, the AI visibility of brand information directly determines the possibility of business opportunities. Through structured content optimization, GEO enables brand information to be prioritized by AI systems and directly presented in generated answers, realizing a paradigm shift in marketing from “user clicks a link” to “AI proactively recommends” [1][2].

The core difference from traditional SEO (Search Engine Optimization) lies in focusing on the “proactive recommendation” logic of generative AI scenarios: Traditional SEO pursues search rankings and user clicks, while GEO pursues direct citation and recommendation in AI-generated content, enabling cognitive penetration without requiring users to click links [1].

. According to data from Mininglamp Technology, the global GEO market size will reach $24 billion by 2026, and is expected to hit $100 billion by 2030 [3].

. According to data from LeadLeo Research Institute, the domestic GEO market is expected to reach 11.1 billion RMB by 2026, and 36.5 billion RMB by 2028, with a compound annual growth rate exceeding 50% [3].

include:

Growth Driver	Specific Impact
Shift in User Habits	More and more users prefer to obtain information through AI conversations; Doubao has 155 million weekly active users, and DeepSeek has over 80 million [2]
Budget Reallocation	Advertisers are shifting their budgets from traditional search to GEO
Clarification of Platform Rules	Large model vendors will strengthen source governance and optimize rule construction, accelerating service standardization

Gartner predicts that by 2028, the traffic brands receive from search engines will decrease by 50%, and consumers will embrace AI-driven generative search [2].

The GEO industrial chain features “upstream segment dominates rules, mid-stream segment flourishes with diverse players, downstream segment has differentiated demand” [3]:

• Key Players: ChatGPT, Doubao, DeepSeek, Kimi, etc.
• Core Capabilities: Algorithms, source crawling preferences, content citation logic
• Investment Characteristics: Strong bargaining power, but difficult for ordinary investors to participate directly

:

1. Technology-Driven Companies
   : Possess algorithm analysis and strategy optimization capabilities, and are expected to build long-term barriers
   • BlueFocus (300058.SZ)
     : Pursues an aggressive strategy, has announced “All in AI”, and its AI-driven business revenue ranks among the top in A-share marketing companies [3]
   • E-Data World (301171.SZ)
     : A technology-driven leading overseas marketing company, whose programmatic advertising platform has gained international recognition [3]

2. Resource/Media Companies
   : Have ready-made media distribution channels and resources
   • Zhejiang Cultural Internet
     : Has the HochiGEO system with deep technical accumulation

3. E-commerce Platform Ecological Operation Companies
   : Have in-depth cooperation with Alibaba and ByteDance
   • Zhidemai (300785.SZ)
     : Has massive commodity data and UGC content, and strong ability to understand consumer intentions [3]
   • Ewang Echuang (300792.SZ)
     : Has in-depth co-creation with Alibaba Qianwen, enabling it to understand underlying optimization logic earlier [3]

• In the short term, small and medium-sized enterprises with flexible budgets and sensitivity to results may be more willing to try GEO
• In the medium to long term, large brand advertisers will incorporate GEO into their brand building strategies

Multiple companies have issued risk warning announcements, clearly stating [1][4]:

• BlueFocus: AI-driven related revenue accounts for a very small proportion of overall operating revenue, and has no significant impact on the company’s overall operations
• Zhidemai: AI-related revenue accounts for a very small proportion of overall operating revenue, and the company is not involved in GEO business
• Tianlong Group: Does not directly engage in AI business, and has not generated additional revenue from AI tools

Concept stocks have shown extreme trends:

• January 12-13: Multiple individual stocks rose by the daily limit for consecutive days, and BlueFocus’s stock price doubled in seven days
• January 15: A sharp pullback occurred; Zhidemai and Tianlong Group fell by the 20% daily limit, and BlueFocus dropped by over 15% [4]

Risk Type	Specific Description
Algorithm Rule Risk	Adjustments to algorithm rules by large model platforms may render existing optimization solutions directly ineffective [1]
Platform Squeezing Risk	AI platforms may build their own commercialization systems (e.g., Doubao plans to launch native ads), squeezing the space for third-party service providers [1]
Regulatory Uncertainty	Policies on the supervision of AI-recommended content are yet to be clarified, leading to risks of compliance adjustments [1]
Intensified Competition	The industry is in its early “mixed bag” stage, and service prices may decline

Dong Yaohui, Vice President of the Shenzhen Institute of Financial Stability and Development, pointed out: Some companies only stay at the stage of “riding the concept wave”, lacking actual implementation capabilities and sustained R&D investment [1].

:

1. Possess real technical, data, or ecological barriers
2. Have announced a comprehensive AI-focused strategy
3. Have in-depth cooperative relationships with major platform ecosystems
4. Have sustained R&D investment and capabilities

:

• Short-term growth is severely divorced from fundamentals
• Only “ride the concept wave” without actual business implementation
• AI-related revenue accounts for an extremely low proportion

:

1. Batch Position Building
   : Avoid chasing high prices, and wait for a pullback before building positions in batches
2. Strict Stop-Loss
   : Set a reasonable stop-loss level to control downside risks
3. Focus on Fundamentals
   : Prioritize companies supported by real performance
4. Long-Term Perspective
   : The investment logic of AI applications is shifting from “computing power competition” to “application value” [2], so patience is needed for business models to mature

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[1] IT Home - “How to Make AI Recommend You More? GEO (Generative Engine Optimization) Concept Stocks Continue to ‘Surge’” (https://www.ithome.com/0/912/761.htm)

[2] CLS - “The New ‘Yi Zhongtian’ is Here! GEO Concept Surges, Is AI Investment Shifting to Application Value?” (https://www.cls.cn/detail/2254504)

[3] Eastmoney - “GEO: AI Reshapes New Marketing Paradigm” (https://emcreative.eastmoney.com/app_fortune/article/index.html?artCode=20260111224936958870690)

[4] Securities Times Network - “GEO Concept Pulls Back Sharply, Zhidemai and Tianlong Group Both Hit the Daily Limit Down” (https://www.stcn.com/article/detail/3594390.html)