January 18, 2026
On January 16, OpenAI officially announced that the company would be rolling out ad tests in the US over the coming weeks.
Many have speculated that this day was coming. For the last couple of years, we have been utilising the ‘all-knowing’ power of ChatGPT for free, but anyone in the industry knows that server costs are unpleasant. OpenAI has bills to pay, and lots of them, so it’s no surprise that they are having to monetise the interface.
So, let’s take a look at how ChatGPT ads will work and what it means for you.
The rollout is starting immediately in the first quarter of this year. OpenAI is being careful not to alienate too many users right out of the gate, so they are segmenting the audience.
The ads will mostly appear for users on the Free tier as these are the people who are costing OpenAI the most money. They’re also introducing a new subscription tier called ‘ChatGPT Go’, which sits at a lower price point of around £8 a month depending on where you are in the world. This tier seems to be for casual users who want a bit more power than the free version but don’t need the full Pro suite. These users will also see ads. For now, those paying for the Plus, Team, or Enterprise plans are safe.
If you are paying the full premium, you get to keep the clean and ad-free experience. But, for the millions of people using the basic version for things like asking questions and drafting emails, ads are here to stay.
There was some concern that this would end up looking like the early days of the internet, with pop-ups and flashing banners, but thankfully they’ve kept the implementation surprisingly restrained. There are no unskippable videos or interruptions mid-sentence. Instead, ads will sit at the bottom of the response.
The targeting entirely relies on context. If you ask ChatGPT for an itinerary for a weekend in London, you might see a sponsored suggestion for a hotel booking site or a local tour guide under the schedule it provides.
OpenAI has been clear that they are avoiding sensitive categories. You won't see placements next to conversations about health issues, politics, or other risky topics. They’ve also promised that Ad additions won’t affect the answer being given - they’re purely supplementary.
They are also taking a strong stance on privacy to avoid the inevitable backlash. The targeting is based on a user's current session - it’s about what you are asking at that moment, and not what you asked three weeks ago.
Early reports suggest that unlike Google Ads, which are powered by a CPC (Cost Per Click) model, ChatGPT ads will favour a CPM (Cost Per Mile) model. This means advertisers will be charged based on impressions rather than clicks. This does make sense from a user behaviour perspective. People typically use ChatGPT to get an answer rather than to search and click.
If you’re a software company, you want to be the brand mentioned when a user asks for ‘the best CRM for freelancers’. Even if the user doesn't click your link immediately, appearing as the sponsored suggestion essentially serves as a third-party recommendation.
ChatGPT ads are as much about branding as they are the typical performance metrics we associate with PPC.
Although there isn’t a direct focus on clicks, the intent could be just as high, or potentially even higher, than with search. This is because a Google Search is often fairly broad but a prompt in ChatGPT is usually quite specific and conversational. When a user describes a problem to ChatGPT, they are deep in the consideration phase, looking for a solution and not just browsing.
Having your brand appear in that conversation is incredibly valuable - it’s as though a salesperson is suggesting your product to the customer just before they make a decision.
Currently, ads are in the testing phase, so you can’t log into a dashboard and start spending your budget just yet. However, the window to prepare is probably fairly small.
OpenAI has stated that they will ‘learn from feedback and refine how ads show up over time’, so it’s important to keep an eye out for news and updates about formats and pricing models over the next few months. Those that can get ahead of the game early on are much more likely to succeed.
If you want expert guidance on PPC or ChatGPT advertising, then don’t hesitate to get in touch with us today!
