For years, businesses have known where to spend their ad budget: Google, Meta, and Microsoft Bing. Now there is a new player entering this game.
OpenAI has recently announced that ChatGPT ads reached a $1 billion annualized revenue run rate within 200 days. ChatGPT Ads are now available in 52 countries, including India, Australia, the USA, Canada, the UK, the Middle East, and North Africa.
The Difference Between Google Ads and ChatGPT Ads
Google Ads and ChatGPT Ads can both help businesses reach potential customers, but the way they reach those customers is different.
When someone searches on Google for something like
“Best office chairs in Sydney,”
Google Ads can put a business in front of that person at the exact moment they are searching for the service.
ChatGPT Ads works differently. If a user might ask,
“Where can I buy office chairs in Sydney. What should I consider before choosing a chair?"
The user is not simply searching for a business. They’re looking for information, recommendations, and ideas to make a decision.
ChatGPT takes the context of the current conversation and shows an ad relevant to what people are exploring. Currently, ChatGPT Ads are used by tens of thousands of advertisers.
CPM and CPC of ChatGPT Ads
ChatGPT CPM costs around $25 - $60 per 1000 impressions, and CPC ranges from $3 – $5. However, these are approximate prices, and the actual cost can vary depending on the industry. The minimum Ad spend of $200,000 is eliminated now. So business owners don’t have to worry about the budget. OpenAI has also launched Conversion API and pixel-based measurement, so advertisers can actually analyse whether there are any purchases, leads, or any other actions.
Why should businesses consider ChatGPT Ads?
I’m not saying businesses should go for ChatGPT Ads by replacing their existing advertising platform. They should see ChatGPT Ads as another option to increase revenue. Be an early advertiser to reach customers before it becomes crowded with businesses.
Google shows ads to people who are actively searching, and ChatGPT shows ads not only to people who are searching for exact services or products; meanwhile, it shows ads to people who are looking for recommendations, researching, or suggestions.
Think of it like SEO and GEO SEO.
SEO helps businesses improve their visibility in traditional search, and GEO improves visibility in AI search results.
And people are doing SEO as well as GEO to improve rankings in both Google and AI platforms to get customers organically.
Hitting a $1 billion annualized revenue run rate is a milestone that businesses shouldn’t ignore. They should take this as an early opportunity to start testing their ad performance in ChatGPT and measure their leads and sales revenue. It is never about Google Ads Vs ChatGPT Ads; it is always about Google Ads as well as ChatGPT Ads.
OpenAI said that they will remains focus on expanding ChatGPT Ads buying options, additional formats, objectives, and measurement capabilities.