chatgpt ads

ChatGPT Ads: Premium Intent or Premium Hype?

NEWS

Sam Dadd

Sam Dadd

Senior Paid Media Executive,

Arke Agency

Context

With OpenAI confirming the launch of ChatGPT Ads in January 2026, Sam, Senior Paid Media Executive at Arke, shares how we’re currently thinking about this new addition to the paid media playbook, the potential impact it could have, and the key considerations for advertisers of all sizes.

What are OpenAI (ChatGPT) Ads?

As AI adoption has accelerated, large language models like ChatGPT have quickly become a default tool for how people access information: from simple queries through to complex problem-solving and decision-making.

With a rapidly growing user base and an increasing role in everyday behaviour, it was always likely that platforms like ChatGPT would eventually introduce advertising as a revenue stream. From a marketing perspective, this represents a largely untapped environment, where attention is high and intent is often explicit.

Early reports suggest OpenAI is pricing ChatGPT Ads at around $60 per 1,000 impressions, roughly three times higher than typical Meta awareness placements. In return, advertisers should expect high-level reporting only, such as impressions and clicks, with limited visibility into downstream actions like conversions or revenue.

What makes this format different is context. Ads appear within active conversations, where users are already asking questions, comparing options, or seeking guidance. Unlike search or social media, this is not interruption-based media. It’s context-driven exposure, with clear labelling and user controls.

If this placement scales, it has the potential to become a new channel for discovery and performance — particularly for brands focused on intent, education, and consideration-stage activity.

To put the opportunity into perspective, ChatGPT is widely recognised as the fastest-growing platform ever, reaching over 100 million users within two months of launch. TikTok took nine months to reach the same milestone, while Instagram took more than two years.

What ChatGPT Ads could become

The long-term opportunity sits in the depth of data available within LLMs. Over time, this should unlock far more advanced ways of reaching high-intent audiences, driven by a deeper understanding of language, semantics, and user intent than most advertising platforms currently offer.

We could see meaningful improvements in how intent is modelled: from more sophisticated keyword and query interpretation, to deeper language dissection, and a stronger shift towards text-to-image or multimodal ad formats. We’ve already seen early foundations of this through tools like Google’s Asset Studio and the rise of AI-led creative generation. ChatGPT, however, has the potential to take this further given the richness of conversational data available to it.

Looking further ahead, ad formats are likely to expand well beyond what we recognise today. That could include more interactive experiences, immersive formats, or entirely new executions — and ideally, ones that are accessible to smaller advertisers, not just enterprise brands. As competition increases, particularly with Google, we expect ChatGPT’s ad offering to evolve in breadth, potentially mirroring the full-funnel flexibility seen in products like Performance Max, supported by OpenAI’s partnership with Microsoft.

If OpenAI wants to compete seriously with established platforms, full-funnel capability will be essential. Attribution will need to mature from awareness through to conversion modelling. It’s difficult to imagine a future where that doesn’t become table stakes.

Ultimately, the real value won’t sit in placements alone, but in the insight derived from the data.

Are ChatGPT Ads for everyone?

Pricing is the biggest immediate concern. Launching at high CPMs creates natural pressure, and over time, that often leads to bidding wars. Historically, that’s where smaller budgets begin to struggle.

There’s also a risk that “premium” becomes the dominant positioning — premium inventory, premium access, premium outcomes — gradually pushing more functionality behind paywalls and reducing accessibility across the platform.

If OpenAI effectively owns the advertising environment within ChatGPT, there’s a legitimate question around how pricing evolves in the absence of direct, like-for-like competition within the platform itself, particularly without an equivalent offering from competitors such as Gemini.

Across our client portfolio, we typically see Meta awareness CPMs averaging £5–£7, while Google’s AI-led products, such as Demand Gen and Performance Max, range from approximately £5 to £50 depending on industry. This highlights the growing cost dependency across AI-driven advertising platforms, where scale and budget increasingly influence competitiveness within higher-priced auction environments.

That said, as more users shift from traditional search behaviour towards AI-assisted answers, stronger algorithms, richer audience data, and new ad surfaces could begin to justify a role within the wider media mix. How that balance plays out will take time.

What we’ll be watching closely

At Arke, our focus will be on where this channel genuinely delivers value for clients. Any opportunity to expand inventory or coverage will be judged on performance and data, not novelty.

As with other platforms, testing will be critical. The brands that learn early, iterate quickly, and understand how this format actually behaves will be best positioned as LLM advertising matures.

For now, we see ChatGPT Ads as a potentially disruptive addition for larger, awareness-led clients. The initial role is less about direct response and more about complementing channels like OOH and programmatic to drive reach and coverage in a premium environment.

The longer-term opportunity sits in audience learning. As data collection becomes more refined through improved signalling and stronger algorithms, ChatGPT could become an effective testing ground for cold prospecting. That, in turn, enables deeper audience insight and more effective retargeting — particularly where first-party data is limited or unavailable.

If that audience value can be realised, it provides stronger justification for the higher CPMs. Until then, ChatGPT Ads shouldn’t be treated as a default inclusion, but rather as a higher-tier option for brands looking to invest in visibility, experimentation, and emerging AI-led environments.

Are Chat GPT Ads a solution for you?

Let’s have a chat and discuss your requirements, our expert Arkenauts know what’s better for each industry as our work expands across multiple sectors. Say hi on the contact form below and let’s devise your next award-winning campaign!

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