For years, digital advertising lived in two places: search engines and social feeds. Now there is a third space: conversations with AI. When someone asks ChatGPT which vacuum to buy or which hotel fits their trip, they are right in the decision moment. And that moment has started to carry ads.
I’m Alonso Jiménez, a Retail Media account director. I manage campaigns on Amazon, Walmart, Target, Instacart and Mercado Libre every day, for brands in the US, Mexico and Latin America. In this article I explain what ChatGPT Ads are, how they work based on what OpenAI has announced, where they fit in the funnel, what to measure and how to prepare your brand without burning budget on a platform that is still being built.
⚡ THE ESSENTIALS IN 20 SECONDS
- ChatGPT Ads are sponsored placements shown at the bottom of ChatGPT answers, clearly labeled and separated from the organic answer.
- OpenAI announced the first tests in January 2026 in the US for Free and Go users; in May 2026 it added CPC buying and a self-serve Ads Manager in beta.
- Today is a learning phase: test with a modest budget, measure beyond the click and get your account ready to scale as the platform matures.
IN THIS ARTICLE
What ChatGPT Ads are
ChatGPT Ads: OpenAI’s ad format that shows sponsored products or services inside ChatGPT, at the bottom of an answer, when they are relevant to the user’s conversation.
In January 2026 OpenAI announced it would start testing ads in the US for logged-in adults on the Free and Go plans. Plus, Pro, Business and Enterprise plans do not include ads, and OpenAI said there will always be a paid, ad-free option. In May 2026 it expanded the pilot with new ways to buy.
ChatGPT Ads don’t compete for the attention of someone being entertained. They show up when someone is asking what to choose.
How they work
Ads are matched to the current conversation when there is a relevant sponsored product or service.
They appear at the bottom of the answer, marked as sponsored and separated from the organic response.
Not shown to users under 18 or next to sensitive topics like health, mental health or politics.
OpenAI has also stated clear principles: ads do not influence ChatGPT’s answers, conversations stay private from advertisers and user data is not sold. Advertisers get aggregated performance insights without access to individual conversations. For your brand, this means targeting is mainly contextual, not based on personal data.
How to buy
| Option | What it means |
|---|---|
| CPM | You pay per thousand impressions. This was the model in the first phase of the pilot. |
| CPC | You pay only when there is a click. OpenAI added it in May 2026. |
| Agencies and tech partners | Available through large agency groups and technology platforms such as Criteo, Pacvue or StackAdapt, among others. |
| Ads Manager (beta) | Self-serve tool to set budgets, bids and pacing, which OpenAI is opening gradually. |
For measurement, OpenAI launched a Conversions API and pixel-based measurement for purchases, leads or sign-ups. If you manage budgets across channels, keep an eye on pacing as you add a new line.
Availability changes fast. At the time of writing, OpenAI had only publicly mentioned tests in the US. If you sell in Mexico or Latin America, check the official information before planning budget there.
Where they fit in the funnel
| Stage | Goal | Typical channels | Key metric |
|---|---|---|---|
| Visibility | Make people know you exist | TV, social, YouTube, influencers | Reach |
| Consideration | Make people think about choosing you | Google, retargeting, DSP, ChatGPT | Clicks, CTR, visits |
| Conversion | Make people buy | Amazon Ads, Google Shopping, your store | Sales, ACOS, ROAS |
| Loyalty | Make people come back | Remarketing, Subscribe & Save | Repeat rate, LTV |
ChatGPT Ads live mostly in discovery and consideration: people are exploring a category, comparing options or asking for a recommendation. That is why you shouldn’t judge them like a branded search campaign on Amazon.
The journey is no longer linear
- Discovery: the user sees or clicks an ad inside ChatGPT.
- Visit: they land on your DTC site or your marketplace listing.
- Validation: they compare, read reviews, ask again or leave to think.
- Purchase: on your site or on Amazon, sometimes days later and through another channel.
- Repeat: they return via direct, email, remarketing or subscription.
Many purchases that start in a conversation end somewhere else. If you only look at direct click conversions, you will undervalue the channel. If you are new to the bigger picture, start with what Retail Media is.
What to measure
Spend, impressions, clicks, CPC and CTR inside ChatGPT Ads.
Sessions and sales in GA4 or Shopify, and on Amazon with Amazon Attribution.
New-to-brand customers, repeat rate, AOV and incremental sales.
If you send traffic to Amazon, tag it with Amazon Attribution. And to know whether the channel really adds, design an incrementality test: compare periods, regions or audiences with and without ads, and watch your branded search too.
A 3-phase plan
| Phase | What to do | Goal |
|---|---|---|
| 1. Test | Modest budget, few categories, clear destinations (site or marketplace) | Learn which structure and destination work best |
| 2. Prepare | Organize structure, messaging, landing pages and measurement | Get the account ready to grow |
| 3. Scale | Increase investment using the data you already built | Grow as the platform and adoption mature |
The logic is the same as any new channel: getting in early costs less and lets you learn before competitors, as long as the test budget is one you can afford to spend on learning.
Common mistakes
- Judging ChatGPT Ads only by last-click ROAS.
- Sending traffic to a page that doesn’t answer what the user just asked.
- Investing heavily before having pixel, Conversions API or Amazon Attribution in place.
- Copying Google Ads copy: the context is a conversation, not a results page.
- Forgetting that product, price and reviews still close the sale.
In a conversation, the brand that answers best wins, not the one that shouts loudest.
Agency secrets for ChatGPT Ads
What we apply with brands that want to test it.
We separate it from performance budget and judge it with different metrics.
We test DTC site vs marketplace to see which converts better.
Pixel, Conversions API and Amazon Attribution ready from day one.
Landing pages that answer the typical questions of the category.
We watch whether branded searches grow on Google and Amazon.
Every new channel looks expensive if you measure it with the rules of the old channel. The best results come when you define upfront what success means in each phase.
Conclusion
ChatGPT Ads open an ad space at the moment people ask what to buy. Today it is a pilot, with CPM and CPC buying and measurement still developing. Test with a modest budget, measure beyond the click, take care of your landing pages and get your account ready to grow as the platform matures.
If you want an omnichannel strategy that includes Retail Media and the new AI channels, let’s talk or see my services.
Frequently asked questions
What are ChatGPT Ads?
They are OpenAI’s ad format showing sponsored products or services at the bottom of ChatGPT answers when relevant to the conversation.
Who sees ads in ChatGPT?
According to OpenAI, the test started in the US with adults on the Free and Go plans. Plus, Pro, Business and Enterprise plans do not include ads.
How do you pay for ChatGPT Ads?
By CPM (per thousand impressions) or CPC (per click), through agencies, technology partners or the Ads Manager beta.
Do ChatGPT Ads use my conversations?
OpenAI says ads are based on the context of the conversation, conversations stay private from advertisers and user data is not sold.
Are ChatGPT Ads available outside the US?
At the time of writing, OpenAI had only announced tests in the US. Check official information for new markets.