ChatGPT Ads: the new advertising space that is set to make waves

ChatGPT Ads
We have a new online advertising channel to explore—and it is set to make waves. ChatGPT ads have already arrived in Portugal, and at Mind Forward we have already started testing this new advertising channel.

Expectations are high. After all, we are talking about a platform where users ask questions, compare options, request recommendations, and make decisions.

But can we already treat ChatGPT Ads the way we treat Google or Meta?

Not yet. For now, the platform is much simpler. That is why it is worth understanding what we can do—and where limitations still exist.

Let us start with targeting

For now, the options are quite limited. We can target by:

  • Geography – country, region, or postal code;
  • Platform – desktop or apps;
  • First-party audiences – via databases uploaded by the advertiser.

In other words, we have some control over who we want to reach, but we are still far from the level of detail that Google Ads or Meta have already accustomed us to.

ChatGPT Ads targeting

And what about objectives?

There are not dozens of options either. You can choose between Conversions, Clicks, or Reach. Buying can be done via CPM (impressions) or CPC (clicks).

That simple—perhaps too simple for those used to more mature channels.

But we are only at the beginning.

Can we choose where the ad appears?

More or less. We can provide some guidance—the so-called hints—about the topics or discussions where we would like to appear. But we cannot say exactly: “I want to appear in this conversation.” The AI decides!

And this is one of the most interesting differences compared to traditional search advertising: instead of choosing only keywords, we can provide context about the type of conversation where we want to be relevant.

The ad structure is also quite simple:

  • 50-character title
  • 100-character description
  • Square image

The ad is ultimately shown at the end of a discussion in ChatGPT. In other words, it does not interrupt the conversation. The user asks their question, explores the topic, and at the end may find a related ad. This is a very different logic from what we are used to.

ChatGPT Ads editing

When it comes to budget, you need to pay attention!

You can set a daily budget or a total budget for a given period. But there is one small catch!

The distribution of spend over the period may still not be as predictable as we would like. That is why, at this stage, it is advisable to monitor spend closely.

Launch the campaign and forget about it? We do not recommend it!

As for reporting… there is still room to grow here, too.

When we analyse campaign results, we have access to the most basic metrics: Impressions, Clicks, Spend, and CPC. But to truly understand the campaign’s impact, you will need to complement this information with external tracking tools.

Because, at the end of the day, knowing that someone clicked is interesting (and knowing what happens after the click is, too).

ChatGPT Ads metrics

We have reached the ultimate question: will ChatGPT Ads replace Google Ads?

It is still too early to draw conclusions. It is natural for the discussion to arise as to whether this new channel could divert investment from Google Search or compete with price comparison and product and service review platforms. But we are still in a testing and learning phase.

And there is another question that seems even more interesting to us: ChatGPT Ads vs. organic ChatGPT.

While some brands are starting to invest in advertising on ChatGPT, many others are trying to understand how to appear organically in the AI’s answers—and what will carry more weight in the future: ChatGPT’s organic recommendation or the ad that appears at the end of the conversation?

We do not have an answer yet!

Imagine ChatGPT recommends one brand and, seconds later, shows an ad for another…

This is precisely what we will continue to monitor with this new channel.

But one thing we already know: ChatGPT Ads have arrived. And ignoring them does not seem like the best strategy!