The arrival of ChatGPT advertising marks a major shift in digital marketing, requiring businesses to rethink customer acquisition strategies. Conversational AI now captures and monetises user intent in new ways. For organisations focused on traditional SEO, ChatGPT ads demand a proactive response to maintain competitiveness and relevance.
What ChatGPT advertising means for commercial search
OpenAI’s ChatGPT advertising changes how online commercial intent is captured and monetised. For businesses relying on traditional search strategies, adapting is now critical.
While search engines display lists of options, conversational platforms provide direct answers within the dialogue, compressing the customer journey into the platform itself and reducing the importance of your website.
If much of your audience adopts AI for research and purchasing, your optimised website could be bypassed entirely. The competitive landscape now shifts to gaining visibility on these platforms. Businesses responding swiftly will have the advantage.
For senior leaders, the core issue is quickly assessing how material this channel is for your market. As online search evolves, understanding AI advertising platforms like ChatGPT is vital to stay competitive.
OpenAI’s monetisation strategy and business implications
OpenAI’s launch of OpenAI ads reflects economic realities. To offset over $100 billion in projected five-year operating costs, OpenAI must monetise free and lower-tier users through advertising.
This shift creates both opportunity and risk. Early advertisers may benefit from lower costs, but as the platform grows, so will competition and pricing.
AI platforms are following a familiar playbook: grow user base with free access, then monetise via ads. This usually leads to declining organic reach and rising costs. Early investment is about future positioning, not static economics. Keeping these points in mind is key for a sustainable AI advertising strategy.
How ChatGPT ads differ from traditional paid search
Conversational AI advertising is very different from traditional paid search, with major impacts for budgets and expectations.
Search advertising is driven by specific queries and clear intent, with transparent auctions and measurable results. In conversational platforms, intent is inferred from dialogue, and ad placement depends on algorithmic context, not just bids. Attribution becomes murkier as recommendations blend into conversations.
OpenAI has promised that ChatGPT sponsored content will be labelled and kept distinct from organic answers, but this highlights the challenge of balancing relevant ad integration with user trust.
For businesses used to transparent search campaigns, this is uncharted territory, involving new risks and uncertainties alongside potential benefits. Navigating it requires strategic caution and flexibility.
Strategic considerations for senior decision makers
Leadership should evaluate ChatGPT advertising investments pragmatically, focusing on business impact – not just technology trends.
First, determine if your target audience actually uses these platforms for relevant decisions. If not, the channel is a lower priority. Second, consider if conversational format truly suits your offering; some products benefit from dialogue, others don’t.
Weigh early-mover advantages against risks of unproven returns. Being first can secure learning and positioning, but also exposes you to platform immaturity; late adopters face higher competitive entry. The right approach depends on your risk tolerance and market conditions.
Pursue experimentation with clear metrics and moderate budgets. Establish benchmarks, monitor performance, and be ready to adapt if results fall short. This way, leaders can make sound AI advertising platform investment decisions.
Preparing your organisation for AI-driven advertising
To prepare for AI advertising, build new capabilities and integrate them with current search programs. Skills from traditional search – like keyword research and landing page optimisation – are less relevant. Your team will need to focus on content that answers customer questions directly and is structured for AI systems.
ChatGPT ads should enhance, not replace, your existing channels. Users and their intent differ across platforms, so measurement and analytics must adapt to track cross-channel effects and avoid double-counting.
Brand safety is crucial; conversational AI can reference your brand unexpectedly, blurring the line between organic and paid mentions. Have monitoring and response processes in place. Success with AI advertising requires a unified approach to content, analytics, and governance.
If you’re unsure about your organisation’s readiness for this channel or need help evaluating its relevance, Wilson Cooke offers expert guidance tailored to business outcomes and risk management. We help you make informed and confident investment decisions based on your market and objectives.
Next Steps for Evaluating AI Advertising
AI-driven advertising platforms like ChatGPT create new opportunities and challenges. To navigate effectively, start with an assessment of your audience’s usage of AI platforms and the impact on your acquisition funnel. Next, ensure your content strategy fits conversational AI. For a detailed audit of your readiness and risks, contact Wilson Cooke. Our experts can help you optimise your investment in this evolving channel.
