AI Marketing: Profound Raises $96M to Boost Brand Visibility in AI Search

by Chief Editor

The Rise of ‘Answer Engine Optimization’ and the Future of Brand Visibility

For decades, marketing success was largely measured by search engine rankings. But a seismic shift is underway. As AI-powered “answer engines” like ChatGPT, Gemini, and Perplexity gain prominence, brands are facing a new imperative: optimizing for AI, not just Google. This is the core bet of Profound, a startup that recently achieved “unicorn” status with a $96 million Series C funding round, valuing the company at $1 billion.

From Search Rankings to AI Answers: A Fundamental Change

The traditional marketing funnel relied on consumers actively searching for information. Now, they’re increasingly receiving synthesized answers directly from AI assistants. Instead of sifting through pages of links, users get a single, concise response. This fundamentally alters how brands are discovered and evaluated.

James Cadwallader, Profound’s CEO and cofounder, explains that the future of marketing hinges on influencing how AI systems talk about and surface brands. “As long as marketing exists, Profound has a place,” he stated to Fortune.

Pro Tip: Don’t assume your existing SEO strategy will translate directly to AI optimization. The algorithms and ranking factors are entirely different.

What Does ‘Answer Engine Optimization’ Actually Imply?

Profound’s software tracks how AI models describe and recommend brands across millions of prompts. This goes beyond simply checking if a brand is mentioned; it analyzes why it’s mentioned and how it compares to competitors. The platform provides insights into the nuances of AI-generated responses, helping marketers understand what factors influence AI’s perception of their brand.

This level of insight is becoming critical as consumer attention migrates from search engines to answer engines, according to Lightspeed partner Sachin Patel. Profound is positioning itself as the “system of record” for marketers in this new landscape.

Early Adoption and Enterprise Traction

Profound isn’t just a theoretical concept. The company already works with over 700 enterprise customers, including major brands like Target, Walmart, Ramp, MongoDB, U.S. Bank, and Figma. Customers are reportedly using the platform to significantly increase their visibility in AI-generated recommendations.

The company’s rapid growth – raising $155 million in funding in under 18 months – demonstrates the urgency brands experience to adapt to this changing environment.

The Agent-to-Agent Future of Marketing

The implications extend beyond simply appearing in AI answers. As Cadwallader points out, the future may involve “agent-to-agent” interactions, where AI agents represent both consumers and brands in research, comparison, and even transactions. This suggests a more automated and AI-driven marketing ecosystem.

How Brands Can Prepare for the AI-First Era

While Profound offers a specific solution, the broader takeaway is clear: brands need to proactively understand how AI perceives them. This requires:

  • Monitoring AI Responses: Regularly check how AI models answer questions related to your industry and brand.
  • Content Optimization for AI: Focus on providing clear, concise, and factual information that AI can easily synthesize.
  • Reputation Management: Actively manage your online reputation, as AI models often draw on publicly available information.
  • Embrace AI Tools: Explore how AI can be used to enhance your marketing efforts, from content creation to customer service.

Frequently Asked Questions (FAQ)

What is ‘answer engine optimization’?
It’s the process of optimizing your brand’s online presence to improve how it’s represented in AI-generated answers, rather than traditional search engine rankings.
Why is AI visibility important?
Due to the fact that more and more consumers are relying on AI assistants for information, making AI-generated responses a key touchpoint for brand discovery.
Is SEO dead?
Not entirely, but its importance is diminishing as AI-powered answer engines gain traction. A combined strategy is likely the most effective approach.

The rise of AI-driven marketing represents a significant opportunity for brands that are willing to adapt. Ignoring this shift could mean becoming invisible in the future of search.

Want to learn more about the evolving marketing landscape? Subscribe to our newsletter for the latest insights and trends.

You may also like

Leave a Comment