A new ad currency has dropped, and it’s measured by whether you show up to the conversation.
Large language models (LLMs) have been shaking up how people search and consume information, and now that ChatGPT advertising has arrived, it’s bringing a new way for consumers to discover brands.
Open AI has actively started testing ads in ChatGPT’s free tier and Google’s Gemini-powered search product is also trialing the roll out of ad formats in AI experiences. The interactions offered by LLMs offer a more targeted way to reach audiences in ways you won’t want to miss out on.
A quick summary of what’s new:
- LLM advertising offers brands a more personalised experience driven by user queries, behaviours and information needs.
- Open AI’s ChatGPT is currently in a pilot phase with enterprise beta partners, and a self-serve platform is expected later in 2026.
- AI ads are able to integrate into user conversations to serve relevant sponsored suggestions at key decision points.
The shift in search habits
Since Google’s AI Overviews launched, 69% of searches now end with zero clicks. Users are increasingly treating AI chat queries as a key source of information with ChatGPT already handling 1 billion searches per week and engaging with around 300 million weekly active users. The platform’s scale highlights the huge opportunity it presents as an advertising channel to engage with high-intent audiences.
How are AI search ads different from Google Search ads?
Based on the searches people input into Google, Google Ads deliver targeted ads or sponsored links based on user’s intent. ChatGPT ads delve deeper by matching answers based on the context of the conversation. Recommendations can therefore be seen as more relevant and thoughtfully targeted, which OpenAI calls ‘Conversational Discovery’.
The model essentially funnels from an active conversation to a recommendation to the next step. Results will appear separately with a clear ‘Sponsored’ label after receiving an organic response from the AI.
| LLM Advertising Type | What it delivers |
| AI-Led Recommendations & Shopping | This is a strong way for users to be guided into a targeted conversion funnel. When a query signals a high buying intent, AI becomes your shopping assistant, serving up relevant product discovery cards or carousels based on the conversation. |
| Sponsored post-response results | These results appear as sponsored placements based on recommended information or insights from advertisers. These appear below the AI’s answer. |
| Interactive “Chat with Brand” dialogues | These dialogues let users ask a brand-specific chatbot follow-up questions. It aims to deliver tailored, dynamic responses aligned with what the brand offers for a more interactive experience with users. |
ChatGPT ads are currently served to Free and Go subscription tier users. The personalised ad targeting can be turned off in their settings, which show relevant ads based on current chat threads or past chat history. In spite of this, ads can still be matched based on the real-time conversation context.
Essentially, these are hyper-personalised ads that stay dynamic as real-time AI conversations evolve. And it’s clear that they will dramatically change the way consumers discover and interact with brands. To be ahead of the game, it often pays to play, however it’s crucial to lay the groundwork so you’re ready to act with a clear strategy. With the right organic foundations in place, and an expert team that understand the ins and outs of AI.
What metrics can be tracked with LLM advertising?
Given that ChatGPT ads will still be in their infancy, you should expect basic stats, though not at as granular a level as other digital advertising platforms like Meta. User’s privacy also means tracking their journey won’t be as clear cut, so cost-per-impression will likely be the starting standard as well as click data.
Should you start experimenting with ads on LLMs?
This new advertising is still evolving, so getting in early gives you a chance to learn, test, and establish a presence. The opportunity to engage audiences during decision-shaping moments is an exciting development, especially with dynamic formats such as the “Chat with Brand” dialogues which provide a deeper level of personalisation. What we’ve always seen is that the brands who act as early movers on new ad platforms and with new ad formats, usually win big.
However, for now, advertising on ChatGPT is only available to select premium advertisers during its beta phase. The price point is also quite high, averaging around $60 CPM, and it is expected to decrease as the platform scales.
If you prefer to build organic citations first before spending, we recommend integrating GEO strategies to get you started:
- Research your AI presence across key platforms your audience use.
- Work on your AI search visibility to appear in AI generated answers.
- Your landing pages, social posts and blogs should also reflect more ‘answer ready’ content.
- Build your authority to increase your citations.
Where AI is fast becoming a primary source for information discovery, brands that start adopting early will be best positioned to shape their online visibility and stay ahead.
