ChatGPT Is an Advertising Platform Now. Here’s What That Means for Your Business.

The script for finding customers when they were searching for something to buy was once simple: Google Ads, Meta Ads (Facebook, Instagram, WhatsApp), LinkedIn Ads, and perhaps TikTok and X (Twitter) Ads.

Thanks to ChatGPT and AI, today, you can add a new name to that list. 

Earlier in 2026, OpenAI, the parent company of ChatGPT, covertly turned ChatGPT into an advertising tool. This happened much sooner than most expected and evolved in a matter of months. 

If you are an entrepreneur or are responsible for marketing a small business, the insights below are vital. 

Why this matters more than you think

For many users today, ChatGPT is no different than what Google was — weighing options and asking “what is the best X for Y” before choosing between a select few without visiting any website. That’s something that has been going on for quite some time already.  What’s new this year is that OpenAI made room for companies in this process. 

Early signals show this cannot be siloed as a niche experiment. According to industry news, the ad test generated $100 million annually after only six weeks, with many advertisers already experimenting with it.

Top advertising agencies, including Omnicom and Publicis, have created ChatGPT-enabled advertising strategies for their clients. We also ran some ads for a couple of clients as well and have gained our own share of insights.

What the sponsored messages really look like

It’s not what you think. The new ChatGPT feature enables the system to show you a sponsor message card whenever it generates an answer to your question. It’s similar to a business card containing a headline, copy, image and link.

OpenAI has been firm that ads will never change what ChatGPT actually tells you. The answer to your prompt is not impacted by the ads. The ad is just an additional option below it.

Ads are shown to whom?

This can shock the user. They show up to ChatGPT’s free plan users and also users using the cheaper version known as Go.

The paying customers with the Plus, PRO or better plans don’t see any ads, and OpenAI says just a small portion of free users see the ads. 

Simply put, this is not about millions of impressions. It is about a few motivated users. 

Starting without an exorbitant investment

According to reports, when OpenAI initially started, it had asked for a minimum investment of $200,000 just to use its testing facility, thereby excluding most small businesses.

Larger businesses are usually slower in new technology adoption; hence, in May, OpenAI’s Ads Manager was available to pretty much all businesses, where they could decide how much they were willing to spend per click or impression.

This was a huge change. A local business or even a startup can now consider this mode of advertising without spending an arm and a leg, for as little as $25 a day.

One major distinction from Google and Facebook advertising

If you are used to using age, salary, profession and past activity as criteria for your ads, ChatGPT Ads will seem strange to you. Currently, the platform allows targeting either by country or by “context,” which refers to the general subject or need, but not by particular keywords and not by demographics.

Advertisers have very limited opportunities for optimization. You may upload first-party data, such as a customer list upload, to target them via ads or exclude them from seeing ads, but that is pretty much it.

The conversations themselves are not provided to advertisers by OpenAI, meaning this marketing channel works best with a clear offer rather than a vague one because of its inability to be targeted precisely.

Where it fits (and where it doesn’t) right now

Currently, the most appropriate use of ChatGPT Ads appears to be where the individual is evaluating different options or conducting research for making a particular decision. In simple terms, ChatGPT Ads is best for purchases, which include software, education, traveling and other service products.

From our experience, the traffic is also not converting the way the client desires. But we have seen growth of other channels, which begs the question: if users are actually using ChatGPT to research, but then go to the website directly or perform more branded search or look to social media.

What this means for entrepreneurs

The platform is still relatively new and, as earlier stated, has limited features, but it is growing very quickly.

The ad formats, targeting tools and category policies have been revised at least a couple of times this year, and there will certainly be more changes coming. 

Rather than trying to completely revamp your marketing budget in a single day, marketers and entrepreneurs should try running a smaller experiment first and see how it does.