ChatGPT Ads - A faster way to shop?

Search is changing. 

For years, the starting point for researching a product, service, holiday, trainers or pretty much anything else was simple: open Google, type in a few keywords and start scrolling. 

Now, increasingly, people are asking AI. 

ChatGPT, Gemini, Perplexity and other answer engines are changing how people discover information - and, importantly for marketers - how they make decisions. 

OpenAI's pitch is simple: 

“Instead of scrolling through pages of results, simply describe what you want. ChatGPT helps you browse, compare, and refine options - all in one place - so you can find the right product faster.”  

In the UK, Ofcom found that 54% of adults now use AI tools such as ChatGPT, Copilot or Gemini, rising to 79% among 16-24-year-olds and 74% among 25-34-year-olds. That’s a lot of potential customers already using AI as part of their everyday online behaviour. 

And now there’s another piece of the puzzle: ChatGPT shopping and advertising. 

What are ChatGPT Ads?

...and how do they fit into ChatGPT Shopping? 

OpenAI, the creator of ChatGPT, is giving advertisers the opportunity to put paid messages into the conversational journey, as users explore, compare and decide.  

Someone might ask: “What are the best running shoes for someone who runs 20 miles a week?” 

Or: “Find me a family-friendly holiday in Spain in October, under £3,000.” 

The user is already telling the platform what they want, why they want it and, potentially, what matters to them. 

That's where ChatGPT Shopping comes in. 

OpenAI says its ad system considers signals including the context and intent of the current conversation, alongside factors such as the landing page, ad copy and advertiser-provided context. 

For marketers, that's an interesting shift. 

This isn't simply Google Ads in a different place. The user journey is different - and that means the way brands show up needs to be different too. 

Think about a travel search. 

On Google, someone might search: “Best family holidays Spain. They'll see a set of search results and ads, then decide where to click. 

In ChatGPT, the conversation could be much more specific: “We're looking for a family holiday to Spain in October. We have two children, want a short transfer and have £3,000 to spend.”. As the conversation develops, the user might ask about destinations, hotels, prices or different options. 

For brands, that creates an opportunity to be visible while the customer is actively researching and narrowing down their choices. 

It's less about interrupting a search and more about showing up in the conversation. 

That's why we think ChatGPT Ads could be particularly interesting for products and services where the journey involves research, comparison and consideration - from travel and automotive to finance, education and ecommerce.

ChatGPT Ads or PPC? 

We don't see it as PPC vs ChatGPT Ads. 

It's about understanding how the two channels might work alongside each other. 

The question we want to answer is: What is the CPA and lead quality of someone clicking an advert while actively researching or making a decision in ChatGPT, compared with someone conducting a conventional Google search? 

The answer will depend on the audience, sector, product and, crucially, the search itself. 

Someone searching Google for “cheap family holidays Spain” is behaving differently from someone asking ChatGPT “We have two children aged six and nine, want somewhere warm in October, don't want a long transfer and have £2,500 to spend.” 

The second query contains considerably more context and intent. 

That could make conversational advertising particularly interesting for brands operating in complex or considered purchase journeys. Like travel.

What does that mean for the travel industry? 

Travel is one of the sectors we’re particularly interested in. 

Because travel is rarely a single-search journey. 

Someone doesn't necessarily search once, click once and book. 

They research destinations. Compare hotels. Ask about weather. Check flight times. Consider whether somewhere is good for children. Look at restaurants. Compare prices. Change their mind. Then ask another question. 

That's exactly the kind of consideration journey that conversational AI is designed around. 

Imagine a user asking: 

“I want a four-night European city break in November. Somewhere with good food, a bit of nightlife but not too much, direct flights from London and a hotel under £800. Where should I go?” 

The conversation can then evolve. 

“What about Lisbon?” 

“Show me some hotels.” 

“Which area is best?” 

“What if we increase the hotel budget to £1,000?” 

That is a very different environment from a traditional search results page. 

For travel brands, the opportunity could therefore be less about simply buying a click and more about being present at the moment a destination, hotel or travel product becomes part of the consideration set. 

That's the bit we're interested in testing. 

Where does ChatGPT Ads fit in the funnel? 

Our view? Research and consideration first. Conversions later. 

Yes, ChatGPT Ads can be optimised for conversions, and conversion tracking is available. 

But it's too early to treat it like a proven performance channel. 

For now, we'd focus on testing, learning and understanding where it adds value. 

That means defining what success looks like before spending the budget. Get the measurement right. Test the channel. Then scale what works. 

Our Digital Director's take: “It’s no surprise to see advertising arrive in ChatGPT. We’re all becoming increasingly comfortable using AI as part of everyday research and decision-making. 

For marketers, the interesting opportunity is the potential to increase visibility during the consideration stage - when someone isn't just looking for information, but actively narrowing down their options. 

Longer term, we’ll see whether that translates into direct conversions. For now, the key is to test it properly: define what success looks like, build a clear measurement plan and make sure the campaign's objective and bidding strategy support that goal.”

ChatGPT Ads: the practical questions 

Can we advertise in the UK? 

Yes. The UK is currently a supported market for ChatGPT Ads, alongside a growing list of other countries. 

Our recommendation: For UK clients, this is now a genuine channel to consider testing. Internationally, though, availability remains market-specific, so we'd check this before building it into an international media plan. 

What's the minimum spend?  

The current UK daily campaign minimum is £15.  

Our recommendation: £15/day gets you in the door. It doesn't necessarily give you enough data to make a good performance decision. Don't confuse the platform minimum with a sensible testing budget. The right level will depend on what you're trying to learn and how much data you need to make an informed decision. 

What's the suggested CPC? 

OpenAI currently recommends starting with a maximum CPC of $3–$5 for CPC campaigns.  

Our recommendation: We'd use this as a starting point rather than treating it as a UK benchmark of what would yield success. 

Is it clicks only?  

No. ChatGPT Ads currently offers CPM, CPC and oCPC as campaign objectives. 

Our recommendation: For lead generation and ecommerce, we'd be interested in oCPC once tracking and sufficient data are in place. 

Can we track conversions?  

Yes. Conversion measurement is available, alongside reporting on metrics including impressions, clicks, spend, CTR, CPC, CPM and conversions. 

Our recommendation: Get measurement in place before calling it a performance test. 

Can we target specific locations?  

Country targeting is available, with more granular targeting available in some markets. 

Our recommendation: Don't assume the targeting options are identical across the specific markets you're planning to target. 

So, should you be advertising on ChatGPT? 

Not necessarily. And that's the point. 

We're not suggesting brands suddenly move budget from Google into ChatGPT because AI is the next big thing. 

We're suggesting marketers test where the behaviour is changing. 

Google isn't disappearing. PPC isn't disappearing. But the way people research, compare and make decisions is evolving. 

As ChatGPT shopping evolves, it gives brands another place to show up - and potentially at very interesting point in the customer journey. 

For sectors such as travel, finance, education, automotive and other considered purchases, that's worth paying attention to. 

Our approach? 

Don't chase the shiny new channel. 

Build a hypothesis. 

Set the measurement. 

Test it properly. 

Then let the data decide whether it deserves more budget. 

Because the real question isn't: “Are ChatGPT Ads the future?” 

It's: “Are your customers already using ChatGPT to make decisions - and if they are, do you want your brand to be part of that conversation?” 

Want to know what this could mean for your brand? Chat to us.