Adobe is acquiring digital marketing platform Semrush for approximately $1.9 billion, a strategic pivot toward AI-driven search optimization after its failed Figma bid. The move signals a major bet on a new marketing discipline for an era where brands are fighting for visibility inside AI chatbots.
The GEO gold rush: The acquisition is a direct response to the rise of "Generative Engine Optimization" (GEO), a new practice for a world where consumers flock to AI for answers. Adobe's own data validates the urgency, showing traffic from generative AI sources to retail sites exploded 1,200% year-over-year, forcing brands to find a new playbook to stay visible.
From design to discovery: This deal pivots Adobe’s strategy away from creative collaboration—the focus of its failed $20 billion Figma bid—and toward the marketing tech stack. Semrush represents a financially sound target, boasting 33% recurring revenue growth in its enterprise segment with clients like Amazon and TikTok already on its roster.
Losing relevance and revenue: "Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue," said Anil Chakravarthy, president of Adobe’s Digital Experience Business. Semrush CEO Bill Wagner added that with the rise of AI-driven search, "brands need to understand where and how their customers are engaging in these new channels."
The deal is expected to close in the first half of 2026, but it still needs to clear regulatory hurdles and get final approval from Semrush stockholders.
The acquisition raises questions about what this means for the thousands of smaller agencies that rely on Semrush. It’s also part of a larger trend that saw over $1 billion invested in 'agentic AI' last year, and it underscores the real-world challenge of GEO, highlighted by a report that Semrush itself initially struggled to get its own tools ranked in AI responses.
