Should You Be Running ChatGPT Ads Right Now?

ChatGPT ads are here, or at least beginning to roll out, and naturally, a lot of business owners and marketers are asking the same question:

Should we be running ChatGPT ads?

Our answer is: maybe.

But we would not look at ChatGPT ads the same way we look at Google Ads, Meta Ads, LinkedIn Ads, or any other mature advertising platform. At least not yet.

Right now, ChatGPT ads are new, experimental, limited, and still somewhat of a black box. That does not mean they are bad. It does not mean they are not worth testing. But it does mean we need to understand what we are actually buying before moving budget into the platform.

Because ChatGPT ads are not simply “Google Ads inside ChatGPT.”

They are a very different type of advertising.

ChatGPT Ads Are Not Traditional Search Ads

When people first hear about ChatGPT ads, it is easy to compare them to Google Ads.

That makes sense on the surface. People use Google to ask questions. People use ChatGPT to ask questions. So naturally, advertisers start thinking, “If someone is asking ChatGPT for a recommendation, shouldn’t our business show up there?”

Maybe.

But the advertising mechanics are very different.

Google Ads has been around for decades. It has a mature ad platform, robust targeting, keyword data, search volume estimates, competition insights, conversion tracking, bidding options, and tools like Google Keyword Planner that help advertisers understand how people are actually searching.

With Google Ads, we can see things like:

• How often people search a keyword
• How competitive that keyword is
• What the estimated cost may be
• Whether the keyword appears to have buying intent
• How to structure campaigns around specific search behavior

That is incredibly helpful.

ChatGPT ads, on the other hand, do not currently offer that same level of visibility.

We are not looking at a traditional keyword planner. We are not seeing exact search volume. We are not building campaigns around years of historical search behavior. Instead, we are making educated guesses about what kinds of conversations our potential buyers may be having.

That is a big difference.

With Google Ads, we are often building campaigns around visible search behavior.

With ChatGPT ads, we are building campaigns around inferred conversation behavior.

ChatGPT Ads Are Closer to Native Ads Than Google Search Ads

In their current state, we would think about ChatGPT ads more like native advertising than traditional search advertising.

Native ads are ads that appear within or alongside content. They may be relevant to what someone is reading, watching, or researching, but the person may or may not be ready to buy.

That is similar to where ChatGPT ads are right now.

OpenAI has said it is testing ads in ChatGPT for logged-in adults on Free and Go tiers, while Plus, Pro, Business, Enterprise, and Education tiers do not have ads. OpenAI also says ads do not influence ChatGPT answers and are separate and clearly labeled.

That placement matters.

If ChatGPT gives someone a full answer first, and possibly mentions competitors, product options, or different ways to think through the decision, an ad may show up below that answer.

So we may not be paying to become the answer.

We may be paying to be present near the answer.

That can still have value. There is brand recognition value in being visible when someone is thinking about a relevant problem. But it is not the same thing as showing up at the top of a Google search result when someone types “best dentist near me” or “Google Ads agency for small business.”

The Current Targeting Is Still Vague

One of the biggest limitations right now is targeting.

The current targeting relies heavily on what are called context hints. In simple terms, advertisers describe the conversation topics or keywords where their product or service may be relevant.

But these hints are not exact-match targeting rules.

OpenAI’s advertiser help content says context hints help guide matching, but they are not exact-match keywords and do not guarantee delivery in specific conversations.

That is very important.

On Google, if we want to target a specific keyword phrase, we can build a campaign around that phrase. We can see search volume. We can look at competition. We can decide how tightly or broadly we want to match related searches.

With ChatGPT ads, the targeting is much less precise.

We are essentially giving the system guidance about the kinds of conversations where an ad might make sense. That means our strategy has to shift from “What keywords do we want to bid on?” to “What questions would our ideal buyer be asking when they are close to making a decision?”

For example, instead of only thinking about phrases like:

• Marketing agency
• Google Ads management
• SEO company

We would want to think about bottom-of-funnel questions like:

• Should we hire a marketing agency or keep it in-house?
• What should we look for before hiring an SEO agency?
• How do we know if our Google Ads agency is doing a good job?
• What is the best way to market a local service business?
• What questions should we ask before hiring a digital marketing company?

That is a different kind of planning.

We are not just targeting words. We are trying to anticipate conversations.

Local Targeting Is a Major Limitation

Another important issue is geographic targeting.

Right now, ChatGPT ad targeting appears to be very broad. Depending on the version of the platform or access level, available geographic targeting may be limited to larger areas such as country, state, or DMA.

DMA stands for Designated Marketing Area.

A DMA is a media market region. It is much broader than a few zip codes or a small service radius.

That creates a real challenge for local businesses.

If you are a local business that only serves a few zip codes, a single city, or a 10-mile radius, broad geographic targeting can create a lot of waste.

For example, if you are a med spa in Greenwood, Indiana, you probably do not want to pay for impressions across the entire state of Indiana. If you are a local HVAC company that only serves Johnson County and part of Marion County, you probably do not want to target an entire DMA if most of that audience cannot realistically become a customer.

That does not mean local businesses can never test ChatGPT ads.

But right now, the platform seems better suited for businesses that can serve a larger geographic area.

That might include:

• E-commerce brands
• Software companies
• Online education or training companies
• National or regional service providers
• B2B companies with a broader sales territory
• High-margin professional services that can work remotely
• Franchise or multi-location brands

For a hyperlocal business, we would be cautious.

Yes. I’d revise that section to make the audience reach issue much clearer.

Here’s the updated version you can insert into the blog:

Is Your Audience Actually Able to See ChatGPT Ads?

Another important question is not just, “Are people using ChatGPT?”

The better question is:

Is your specific audience using ChatGPT in a way that makes them reachable through ads?

That is where we have to be careful.

OpenAI has said that ChatGPT ads are primarily being tested with logged-in adult users on Free and Go plans. Plus, Pro, Business, Enterprise, and Education plans do not have ads. Ads are also clearly labeled as sponsored and separated from the organic answer. (OpenAI)

That matters because the people who see ChatGPT ads may not represent every ChatGPT user.

For starters, if your business primarily targets people under 18, ChatGPT ads may not be the right fit because the ad test is focused on logged-in adult users. OpenAI also uses age-prediction signals to help identify accounts that may belong to users under 18 and apply extra safety settings. (OpenAI Help Center)

Then there is the subscription question.

If your ideal audience is made up of power users, executives, marketers, consultants, developers, business owners, researchers, or teams using ChatGPT heavily for work, there is a real possibility that many of them are paying for a Plus, Pro, Business, Enterprise, or Education plan. And if they are on those plans, they may not see ads at all. OpenAI’s help content also says ad controls are only available for Free and Go users, while Plus, Pro, Enterprise, and Edu plans are ad-free. (OpenAI Help Center)

So before testing ChatGPT ads, we would want to ask:

• Is our target audience likely using ChatGPT?
• Are they using it for questions related to what we sell?
• Are they likely using the Free or Go plan, where ads may appear?
• Or are they more likely paying for ChatGPT, using a business account, or accessing it through work or education, where ads may not appear?
• Are they adults, since the current ad test is focused on logged-in adult users?

This is an important distinction.

The people most likely to use ChatGPT heavily may not always be the people most likely to see ChatGPT ads.

And the people most likely to see the ads may not always be using ChatGPT for bottom-of-funnel buying decisions.

That does not mean ChatGPT ads are not worth testing. But it does mean we should not assume that “our audience uses ChatGPT” automatically means “our audience is reachable through ChatGPT ads.”

At this stage, ChatGPT ads are not just a media buy.

They are an audience behavior test.

We are testing whether our audience is there, whether they are on an ad-supported plan, whether the platform can match our ads to the right conversations, and whether those users are willing to click and convert.

ChatGPT Ads Are Expensive

The next thing to consider is cost.

One of the main ways advertisers compare ad platforms is by looking at CPM.

CPM stands for cost per thousand impressions.

In plain English, CPM tells us how much we pay for every 1,000 times an ad is shown.

So if the CPM is $40, that means we are paying about $40 for every 1,000 impressions, whether someone clicks or not.

Current reporting has suggested ChatGPT ad CPMs may be hovering around $25 to $45, with some earlier beta pricing reported even higher. To put that into perspective, Digiday reported benchmark comparisons from Gupta Media showing Facebook around $4.82, Instagram around $7.63, Google Display around $10.33, TikTok around $3.02, and LinkedIn around $39.19.

To say it lightly: ChatGPT ads are expensive.

Now, expensive does not always mean bad.

LinkedIn ads are also expensive, but many B2B companies still use them because the audience and targeting can justify the cost.

The question is whether ChatGPT ads can justify the cost for your business.

And right now, that is still an open question.

If we are going to pay premium CPMs, we need a business model that can support it. That usually means we need at least one of the following:

• A high-margin product or service
• A high customer lifetime value
• A strong conversion process
• A larger sales territory
• A clear offer
• A strong landing page
• A follow-up system that can convert interest into revenue

If a business is selling a low-margin product, has a small local service area, or needs every ad dollar to produce immediate leads, ChatGPT ads may not be the best place to start.

The Creative Options Are Limited

Another factor is the ad creative itself.

Right now, ChatGPT ad creative appears to be very limited compared with other platforms.

Advertisers may only have a short headline, a short description, and a small image to work with. That means there is not much room to explain value, show proof, tell a story, or overcome objections.

That matters.

Some products and services are easy to understand in a few words.

Others are not.

If the offer requires education, trust-building, comparison, nuance, or a longer explanation, a tiny ad unit may not be enough to do the heavy lifting.

That means the landing page becomes even more important.

The ad may get attention, but the landing page has to do the convincing.

The Best Use of ChatGPT Ads May Be Learning

Because this platform is so new, we would treat ChatGPT ads as an experimental channel.

Not a proven acquisition channel.

Not the primary lead source.

Not the place to put your last marketing dollar.

This is where we would put a learning budget.

If a business already has strong performance from Google Ads, SEO, email marketing, Meta Ads, retargeting, or other established channels, then testing ChatGPT ads may make sense.

But we would be very cautious about pulling money out of campaigns that are already working just to chase a new platform.

Right now, there is not enough historical performance data to confidently say which businesses will see predictable returns. We are testing multiple things at once:

• Are your ideal customers using ChatGPT?
• Are they using it for buying decisions?
• Are your context hints strong enough?
• Is the platform matching ads to the right conversations?
• Is the ad placement visible enough?
• Is the traffic qualified?
• Does the landing page convert?
• Can you get enough data to optimize?

That is a lot of unknowns.

What We Do Know About How People Use ChatGPT

One reason ChatGPT ads are interesting is that people are using ChatGPT for practical guidance and decision support.

OpenAI released research in 2025 based on a large-scale analysis of consumer ChatGPT usage. The research found that many conversations focus on practical guidance, seeking information, and writing. It also categorized usage into “Asking,” “Doing,” and “Expressing,” with “Asking” making up about 49% of messages. OpenAI also reported that approximately 30% of consumer usage is work-related and approximately 70% is non-work-related.

That is important because it suggests people are not only using ChatGPT for fun or random prompts.

They are using it to think through decisions, ask questions, get advice, draft content, compare options, and solve practical problems.

That could create a real advertising opportunity.

But here is the issue: we still do not know enough about how your specific audience uses ChatGPT.

We do not know whether your ideal customer is using ChatGPT to research your type of product or service.

We do not know whether they are using it at the top of the funnel, middle of the funnel, or bottom of the funnel.

We do not know whether they trust sponsored recommendations in this environment.

We do not know whether they will click.

We do not know whether they will convert.

So yes, there is potential.

But there is also risk.

Is Your Audience Actually Using ChatGPT?

Another important question is not just, “Are people using ChatGPT?”

The better question is:

Is your specific audience using ChatGPT in a way that makes them reachable and relevant for your business?

That is where we have to be careful.

ChatGPT may have a large user base, and OpenAI has released data showing that people use ChatGPT for asking questions, seeking information, writing, decision support, and practical guidance. That makes the platform very interesting from an advertising standpoint.

But broad usage does not automatically mean your audience is there.

And even if your audience is using ChatGPT, we still have to ask deeper questions:

• Are they using ChatGPT regularly?
• Are they using it for personal tasks, work tasks, or buying decisions?
• Are they asking questions related to your product or service?
• Are they using the free version where ads may appear?
• Are they paying for ChatGPT Plus, Pro, Business, Enterprise, or Education, where ads may not be shown?
• Are they the type of user who would click on a sponsored result inside an AI conversation?

This is one of the biggest unknowns with ChatGPT ads right now.

A person who uses ChatGPT heavily may actually be more likely to pay for it, especially if they use it for business, productivity, research, strategy, or daily work. And if that user is on a paid plan where ads are not being shown, they may not be reachable through ChatGPT ads at all.

On the other hand, a casual user on the free version may see ads, but they may not be using ChatGPT for high-intent buying decisions.

That creates a very important distinction.

The people most likely to see the ads may not always be the same people most likely to be your best buyers.

That does not mean ChatGPT ads are not worth testing. But it does mean we should not assume that “ChatGPT has a lot of users” equals “ChatGPT ads will reach our ideal customers.”

For businesses considering this platform, we would want to think through audience fit before spending.

For example:

If your audience includes business owners, executives, marketers, consultants, software buyers, educators, or people who already use AI tools to research decisions, ChatGPT ads may be more interesting.

If your audience is less likely to use AI tools, less likely to research online before buying, or more likely to make decisions through local referrals, phone calls, in-person relationships, or Google searches, ChatGPT ads may be a weaker fit right now.

And again, we do not have the same kind of audience visibility we have in more mature ad platforms.

With Google Ads, we can use keyword data to understand demand.

With Meta, we can use interest, behavior, engagement, and demographic signals.

With LinkedIn, we can target by job title, company size, industry, seniority, and professional profile data.

With ChatGPT ads, we are still largely inferring.

So before running ChatGPT ads, we would ask:

Do we believe our audience is using ChatGPT?

Do we believe they are using it to ask questions related to what we sell?

Do we believe they are on a version of ChatGPT where ads can actually reach them?

Do we have enough budget to test those assumptions?

That last word is important: assumptions.

At this stage, ChatGPT ads are not just a media buy. They are an audience behavior test.

You are testing whether your audience is there, whether the platform can match your ad to the right conversations, whether the user is open to clicking, and whether that click can convert into a real business result.

That is why we would not treat ChatGPT ads as a guaranteed lead source right now.

We would treat them as a test of whether your audience is actually using AI as part of their buying journey.

Why OpenAI Is Moving Toward Ads

It is also worth looking at the bigger business picture.

AI platforms are expensive to operate. Training and running large AI models requires significant infrastructure, computing power, talent, and ongoing investment. OpenAI has positioned ads as one potential way to support broader access to ChatGPT while maintaining trust, answer independence, and privacy protections.

And if we look at Google, it is easy to understand why advertising is attractive.

Alphabet reported more than $400 billion in annual revenue for 2025, and Google Services revenue continued to be led by growth in Search and other advertising-related businesses.

Advertising remains a massive part of Google’s business model.

So it makes sense that AI companies would look at advertising as one possible path to monetization.

But there is a tension here.

A lot of people liked using ChatGPT because it was not full of ads. It felt different from search engines, social media feeds, and traditional content platforms.

So OpenAI has to be careful.

If ads feel intrusive, irrelevant, or manipulative, users may push back. If ads feel helpful, clearly labeled, and genuinely relevant, they may become accepted over time.

That user experience will matter a lot.

So, Should You Run ChatGPT Ads?

Here is how we would think about it.

You may be a good fit for ChatGPT ads if:

• You have extra budget available for testing
• You are not taking money away from channels that are already working
• You have a high-margin product or service
• You can serve a broad geographic area
• Your offer is easy to understand quickly
• You have strong landing pages
• You have conversion tracking set up
• You are comfortable with limited targeting data
• You are willing to learn before expecting immediate ROI

You may not be a good fit for ChatGPT ads right now if:

• You have a very limited marketing budget
• You need leads immediately
• You only serve a small local radius
• Your product has low margins
• Your website does not convert well
• You do not have tracking in place
• You are not already investing in proven channels
• You are expecting Google Ads-level keyword control
• You cannot afford to test without a guaranteed return

Our Recommendation

If you are curious about ChatGPT ads, start by making sure your tracking is ready.

Set up your pixel. Set up your key events. Make sure your landing pages are clear. Know what a conversion is worth to your business. Know your acceptable cost per lead or cost per acquisition.

Then, if you have additional budget, test carefully.

Do not go into it expecting the same level of control you get from Google Ads.

Do not expect perfect targeting.

Do not expect immediate clarity.

And definitely do not use your last marketing dollar on it.

ChatGPT ads may become a powerful advertising channel. They may also change quickly as OpenAI gets feedback, improves targeting, expands ad formats, and learns how users respond.

There is value in being early.

But being early only pays off if you can afford the learning curve.

So should you run ChatGPT ads right now?

For some businesses, yes, as a controlled experiment.

For many local or budget-sensitive businesses, probably not yet.

Right now, ChatGPT ads are not where we would put your last dollar.

They are where we would put your test budget.