Okay, we’re here. ChatGPT ads have officially launched! Does this mean the traditional PPC pathway is dead? Absolutely not! All we need to do is pivot, as with most things in digital marketing. It’s safe to say that the way the internet spits out facts for users has shifted dramatically, and while users would traditionally start their buyer journeys on a SERP, they are now turning to conversational AI for this. So, what are ChatGPT ads, and how do ChatGPT ads work?

Users are now asking questions like, ‘Where can I find the cheapest running shoes?’, or ‘How do I market my online business?’. So, to be able to capture this shift in user behaviour, OpenAI launched ChatGPT Ads Manager, solidifying the huge shift from search query matching to real-time conversational intent.

Here, we’ll walk you through mechanics, targeting, and the step-by-step strategy for launching your first conversational ad campaign with ChatGPT ads.

What Are ChatGPT Ads?

Essentially, ChatGPT ads can be defined as a native and conversational advertising model that has been created purely for LLMs and AI-driven chat environments. So, instead of solely relying on the standard ad banner or sponsored search listings, ChatGPT ads are naturally placed within the conversation a user is having with the LLM as a contextually relevant sponsored card.

If you aren’t aware already, OpenAI operates on a strict policy called Answer Independence, which means that ads can never influence, alter, shape, or rank the text generated by ChatGPT’s AI model. Instead, it will provide an organic response first, with the sponsored card sitting effortlessly underneath that response as a highly relevant suggestion. It will also be labelled as ‘Sponsored’ for transparency, so the user is aware.

Who Sees These Ads?

Not everyone using ChatGPT will see the ads, and to help protect the premium user experience, OpenAI has segmented its audience into the following:

• Ad-Supported Tiers: ChatGPT ads will only appear to users on the ‘Free’ and ‘Go’ plans who are over the age of 18.
• Ad-Free Tiers: These will remain ad-free and include ‘Plus’, ‘Pro’, ‘Team’, ‘Enterprise’, and ‘Education’ accounts.

How Do ChatGPT Ads Work?

So, what’s the crack with ChatGPT ads, and how do they work? Understanding how they work means that we need to tweak the way we use the traditional keyword playbook. Traditionally, as you may know, search engines rely heavily on exact-phrase or broad-match keywords. With ChatGPT ads on the other hand, it operates entirely on semantic context and user intent. So, basically, the platform will look at the entire conversation thread to figure out what the user is trying to accomplish.

Using Context Hints

So, instead of creating a list of hundreds of keywords, we can now start using plain-language descriptions within the ad group level known as context hints. A context hint is a descriptive phrase that outlines the scenario, topic or buyer persona that you want to target. ChatGPT will take the context hint and match it to a relevant active user conversation.

For example, a B2B SaaS company could use the following context hint:

“Marketing leaders looking to evaluate a new project management agency or software provider.”

The ad system will still be able to take that context hint and match it with the relevant conversation, even if the exact words aren’t used.

Real-Time Auction and Ranking

An automated, relevance-weighted second-price auction will instantly take place behind the scenes when these relevant conversations occur. The ad system will evaluate several distinct signals and will then choose the most relevant ad, specifically looking at the following:

• The semantic alignment of your context hints.
• The relevance of your ad title, description copy, and landing page content.
• Your maximum bid configuration.

What is the Anatomy of an Ad Unit?

When a specific ad wins the auction, it will be displayed beneath the AI’s response in the following way (these can also be configured directly inside the Ads Manager):

• Advertiser Name & Favicon: Including your verified business identity and square logo (minimum 128×128 pixels).

• Title: This will need to be between 16-30 characters and will need to be concise, with a hook.

• Copy: This will need to include a brief summary of your value proposition and will need to be between 32-60 characters.

• Image Asset: This should be a 1:1 square visual asset that helps drive engagement.

• Landing Page Link: Of course, you’ll need to include a URL that is compatible with traditional UTM tracking.

What Are the Benefits of Using ChatGPT Ads?

So, when looking at what ChatGPT ads are and how they work, we obviously need to talk about how this will impact your business and what the benefits are!

The main benefit of implementing ChatGPT ads is how seamlessly they can be integrated into a user’s conversation on the platform, keeping users engaged and ensuring that they surface at the exact point that is most beneficial to the user. Whereas with social media ads, it can be a little more disruptive when users are doomscrolling.

So, because targeting relies on context hints that analyse the semantic meaning of a conversation, your brand will surface exactly when they’re evaluating options or seeking recommendations. Using ChatGPT ads will also offer a massive early-mover advantage with lower competition than other more saturated networks. This means that you’ll be able to enjoy lower acquisition costs with higher-quality traffic.

ChatGPT Ads vs. Google Search vs. Meta Social

Here’s a table of the differences between ChatGPT Ads, Google Ads and Meta Social Ads:

Best Practices With Knowing  How ChatGPT Ads Work

As you know by now, conversational AI advertising is highly contextual, which means that hard-sell copy won’t cut it, especially when a user is deeply engaged in their research. So, to be able to get the best ROI with your ChatGPT Ads campaign, here’s what we recommend:

• Write ad copy as if it’s a helpful recommendation: You’ll need to frame your ad copy as though it’s the next logical step for the user to take when trying to solve their issue.
• Align your landing pages with the prompt scenario: Since you know that users are looking to do some research, make sure that you direct them to high-value landing pages and FAQ pages. You want to make sure that these landing pages effortlessly answer the questions they’re asking AI.
• Utilise robust measurement: The ads manager will be able to track baseline metrics, including impressions, clicks, CTR, and spend, but you’ll still need to ensure that you implement clean, static UTM tracking. This will make it a lot easier to track your conversational traffic on your internal web analytics tools.

Okay, so now that the panic is over and you know what ChatGPT ads are and how they work, you can take the first step towards implementing them within your digital marketing strategy. Businesses that move quickly in trying to understand how context targeting operates will have a natural advantage over competitors.

At Assisted, we’ll help you master the balance of clear context hints, perfect ad copy and high-value landing pages so that your brand will easily become the answer users are looking for, exactly when they are looking for it.  Get in touch with us today for more information on how to scale your business with ChatGPT ads!