As shown in this example, when a user clicks on an ad, they’re taken into an active conversation such as planning a trip to Santa Fe with the advertiser, Pueblo & Pine. This approach is truly groundbreaking. Unlike traditional digital ads that redirect users to static landing pages, ChatGPT ads allow users to converse directly with the brand, creating a two-way, interactive experience that hasn’t existed in advertising before. 

How Much Will ChatGPT Ads Cost? 

Pricing is one of the most debated aspects of ChatGPT advertising, especially among advertisers and any PPC Marketing Agency New York brands often turn to for guidance. Current reports suggest that ads will operate on a pay-per-impression (CPM) model rather than a pay-per-click (PPC) model.  

According to recent estimates, OpenAI is targeting a CPM of approximately $60 per 1,000 impressions. For context, Meta (Facebook) typically charges between $20–$25 CPM, making ChatGPT ads significantly more expensive. 

This pricing approach raises concerns for advertisers for two key reasons: 

1. Lower lead quality: 
   CPM-based models are generally less effective at driving high-intent leads compared to PPC models. While ChatGPT users may be valuable, paying per impression often results in a large volume of low-quality traffic, making lead capture more difficult. 

1. Uncertain ROI: 
   The high CPM, combined with the lack of direct lead-driving mechanisms, leaves little margin for strong returns especially when compared to more mature advertising platforms offering similar models at lower costs. 

How Will ChatGPT Ad Auctions Work? 

Based on OpenAI’s job postings and its growing team of advertising veterans from companies like Google and X, it’s likely that ChatGPT’s ad system will mirror many familiar advertising mechanics. These proven features will also help advertisers adopt the platform more easily, including: 

• Audience targeting, such as customer lists, demographic data, and psychographic insights 

• Bidding models, including CPM, CPC, and CPL 

• Ad quality signals, measured through user feedback, engagement, and conversion rates 

• Reporting and analytics, with real-time tracking of impressions and return on ad spend (ROAS) 

ChatGPT’s advertising platform is also expected to integrate with existing ad ecosystems. OpenAI’s Growth Paid Marketing Platform Engineer role explicitly references projects involving integration with major ad platforms. 

Like other tech giants such as Meta and Google, OpenAI will likely leverage AI to help advertisers create more effective ad assets ranging from visuals and copy to offers and messaging. 

Who Should Advertise on ChatGPT? 

Brands whose target audience overlaps with ChatGPT’s user base should strongly consider the platform. The majority of ChatGPT users approximately 54–57% are between the ages of 18 and 34, aligning closely with younger generations’ search behaviours. 

That said, companies targeting older demographics shouldn’t dismiss ChatGPT advertising outright. 

There’s a significant advantage to being an early adopter of fast-growing advertising channels. With less competition, early advertisers can benefit from increased visibility, lower acquisition costs, and the opportunity to establish dominance before the space becomes crowded. 

In many cases, advertisers may even see lower costs than on saturated platforms like Google Ads or Meta at least during the early stages. 

Is ChatGPT Advertising Worth It? 

The answer depends on the business. 

Now, ChatGPT advertising primarily benefits large businesses and enterprises capable of committing around $1 million to the platform. Given this barrier to entry, the current structure isn’t well-suited for small businesses. 

For companies with the budget, however, ChatGPT ads offer a compelling early-mover advantage and a unique opportunity to test a completely new advertising format before it becomes mainstream. 

How Can You Appear on ChatGPT Without Advertising? 

The good news: you don’t need to run ads to gain visibility on ChatGPT. 

The platform already references brands and cites external sources, enabling users to discover businesses organically. Through these mentions, users can click through to explore products, read guides, book appointments, and learn more making organic presence on ChatGPT a valuable opportunity in its own right.