Welcome to this week’s PPC Pulse. This week’s news is a continuation of last week’s announcements about ChatGPT ads and the Google Ads Decoded podcast.
ChatGPT announced premium-priced ads with limited data. The first episode of the Ads Decoded podcast, hosted by Ginny Marvin, Google’s Ads product liaison, featured Group Product Manager Eleanor Stribling to discuss Google Analytics.
Here’s what matters for advertisers and why.
ChatGPT Ads Reported To Start With $60 CPM Basis
While not directly reported from OpenAI, according to reporting from The Information, ChatGPT ads are slated to start around $60 per 1,000 impressions (CPM). This is roughly 3x higher than your typical Meta CPMs.
Despite the premium pricing from the start, advertisers won’t get the measurement tools they’re used to.
Reporting will be limited to high-level metrics like total impressions and clicks, with no visibility into conversion actions. OpenAI has indicated it may expand measurement capabilities later, but nothing is confirmed.
On the heels of last week’s announcement, ads will roll out in the coming weeks to users on ChatGPT’s Free and Go tiers. They’ll appear at the bottom of responses, only when OpenAI determines there’s a relevant product or service tied to the conversation.
Additionally, it’s been reported that initial buy-in for brands is $1 million ad spend.
Why This Matters For Advertisers
While CPM advertising is nothing new to advertisers, the lack of reporting that comes with a new platform is concerning. Especially when marketing budgets continue to get squeezed, and you’re on the hook for justifying every dollar spent.
While intent signal could prove strong with ChatGPT ads, the lack of measurement means advertisers have no way to prove that value or optimize toward it.
The high CPMs paired with minimal data categorize ChatGPT ads as more of a brand awareness play instead of a performance channel, at least initially.
Brands should be prepared to treat it like early-stage display or OTT advertising. You’re paying for attention and reach, not being able to prove ROI.
Another interesting snippet to ponder about the whole ChatGPT ads test is how they’re framing ad visibility. OpenAI already said that ads won’t influence answers. If it actually sticks to that, the only way to get placement is through genuine relevance to what someone is already trying to accomplish.
That framework is very different from how search and social ads work, and it could mean this platform stays small and selective with its advertisers, rather than becoming broadly accessible.
What PPC Professionals Are Saying
The reactions to the staggering $60 CPM starting point seem to be mixed.
Some marketers like Andrew Lolk, founder of SavvyRevenue, and Collin Slatterly, founder of Taikun Digital, aren’t necessarily phased by that number.
“$60 CPMs for ads in ChatGPT are probably a good deal. These ads are intent based which more akin to…
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