How did LocalAnswer achieve 10x ROI with AEO?

How LocalAnswer Achieved 10x ROI with AEO

LocalAnswer, a digital marketing agency specializing in local businesses, transformed their client outcomes by implementing a comprehensive Answer Engine Optimization (AEO) strategy in 2025. By focusing on structured content that directly answers user queries, they increased their average client ROI from 2.5x to 25x within 18 months.

Why This Matters

Traditional SEO is no longer enough in 2026's AI-driven search landscape. With ChatGPT, Google's AI Overviews, and Perplexity handling over 40% of search queries, businesses need to optimize for answer engines, not just search engines.

LocalAnswer recognized this shift early and pivoted their strategy. Instead of chasing keyword rankings, they focused on becoming the definitive source for answers in their clients' industries. This approach led to dramatically higher conversion rates because users found exactly what they needed immediately, building trust and driving action.

The agency discovered that AEO-optimized content generated 3.5x more qualified leads than traditional SEO content, while reducing customer acquisition costs by 60%. Their local restaurant client saw phone orders increase by 180% after implementing AEO strategies around "best [cuisine] near me" queries.

How It Works

LocalAnswer's success stemmed from understanding how AI systems select and present information. Answer engines prioritize content that is:

- Directly responsive to specific user questions

They monitored which answers were being selected by AI systems and doubled down on successful formats. When their legal client's "How long does a personal injury case take?" answer consistently appeared in AI responses, they created similar structured answers for 20 related legal questions.

The agency also built relationships with industry publications to earn citations and backlinks, increasing their content's authority signals that AI systems factor into source selection.

Key Takeaways

Focus on intent over volume: Target specific questions your ideal customers ask, even if search volume appears low – conversion rates will be significantly higher

Structure answers like a conversation: Use clear headings, bullet points, and natural language that mirrors how people actually speak and ask questions

Implement comprehensive schema markup: FAQ and HowTo schemas dramatically increase your chances of being selected by AI answer engines

Create answer clusters, not isolated posts: Group related questions together on comprehensive pages that establish topical authority

Monitor AI system selections: Track which of your answers appear in AI responses and reverse-engineer successful formats for broader application

Last updated: 1/19/2026