Should I Advertise on ChatGPT?
The latest evolution in digital advertising has arrived. But is ChatGPT advertising worth investing in yet?
Artificial intelligence has transformed the way people search for information, compare products and make purchasing decisions. Millions of users are now turning to ChatGPT before they ever visit Google, social media or a company's website.
That shift has naturally led to one question for marketers:
Should my business be advertising on ChatGPT?
The answer is both exciting and nuanced.
OpenAI has officially begun rolling out its advertising platform in beta, allowing selected advertisers to place ads within the ChatGPT experience. While it's still in its infancy, it's already giving us a glimpse into what could become one of the biggest shifts in digital marketing over the next decade.
At South Coast Design, we've already started testing the platform, and after spending time exploring its capabilities, here's our take on where ChatGPT Ads stand today—and whether you should be paying attention.
Why ChatGPT Advertising Matters
Digital advertising has continually evolved.
Businesses first embraced search engines. Then social media transformed audience targeting. Video platforms created entirely new advertising opportunities.
Now AI-powered conversations are changing how consumers discover products and services.
Rather than typing short keywords into a search engine, users are asking detailed questions such as:
"What's the best accounting software for a growing business?"
"Which CRM would suit a small recruitment company?"
"Who offers reliable SEO services for local businesses?"
These conversational searches create highly relevant moments for businesses to appear naturally within the customer's research journey.
Quick Insight: ChatGPT users aren't just browsing—they're actively asking for recommendations, solutions and advice. That makes advertising within AI conversations a particularly interesting opportunity.
Our First Impressions of ChatGPT Ads
Having recently gained access to the beta platform, one thing became immediately clear:
This feels remarkably similar to the early days of Facebook advertising.
The platform is functional but intentionally simple.
Many of the sophisticated tools marketers have become accustomed to simply don't exist yet.
Rather than seeing this as a limitation, it's worth remembering that every major advertising platform started somewhere.
Facebook Ads once had very limited targeting.
Google Ads initially offered far fewer optimisation options than it does today.
ChatGPT appears to be following that same journey.
No Business Manager... Yet
One of the first things advertisers will notice is the absence of a centralised account management system.
Currently:
Every advertiser requires its own individual ad account.
Multiple users can be added to an account.
There is currently no equivalent of Meta Business Manager or Google MCC accounts.
For agencies managing multiple clients, this means workflows aren't quite as streamlined as established advertising platforms.
It isn't a dealbreaker—but it does highlight just how early this platform still is.
Quick Insight: If you're managing advertising for multiple businesses, expect a little more manual administration than you're probably used to.
Geo Targeting Is Extremely Limited
Location targeting is currently one of the platform's biggest constraints.
At present, advertisers can only target users in:
USA
Canada
Australia
New Zealand
That's it.
There is currently:
No county targeting
No city targeting
No postcode targeting
No radius targeting
No regional segmentation
For local businesses, this obviously limits practical use.
If your company only serves customers in Dorset, Manchester or London, you simply can't narrow your audience sufficiently today.
For national brands—or businesses already operating internationally—the platform is much more viable.
The Biggest Difference: Context Over Demographics
Perhaps the most fascinating aspect of ChatGPT advertising is how audience targeting actually works.
Unlike Meta, TikTok or LinkedIn, there are currently:
No age brackets
No gender targeting
No interests
No job titles
No household income targeting
No behavioural audiences
Instead, advertisers provide what OpenAI refers to as Context Hints.
Rather than targeting people, you're targeting conversations.
You describe the types of discussions, topics and keywords where your product or service would naturally be relevant.
For example, an accounting software provider may wish to appear during conversations about:
bookkeeping
VAT returns
business growth
tax software
financial management
Rather than chasing a particular demographic, you're placing your brand into relevant moments where users are already seeking information.
Quick Insight: This is arguably a more intent-driven approach than traditional demographic targeting. It's less about who someone is, and more about what they're trying to solve.
Campaign Objectives Are Still Basic
If you're accustomed to sophisticated performance marketing campaigns, you'll quickly notice another limitation.
Current campaign objectives are restricted to:
Reach
Clicks
That's currently the extent of optimisation.
There's no:
Conversion optimisation
Lead generation optimisation
Purchase optimisation
Value optimisation
Advanced bidding strategies
For performance marketers, this means campaigns should currently be viewed as awareness and traffic-building exercises rather than highly optimised lead-generation machines.
That will almost certainly change as the platform develops.
Is It Worth Advertising on ChatGPT Right Now?
The honest answer depends entirely on your business goals.
If your objective is immediate return on ad spend with sophisticated conversion tracking, you're likely to find more mature platforms such as Google Ads or Meta Ads better suited for now.
However, if you're interested in:
testing emerging channels
gaining first-mover experience
understanding how conversational advertising works
building knowledge before competitors arrive
then ChatGPT Ads are incredibly exciting.
Early adopters often benefit from lower competition, greater visibility and valuable insights that become increasingly difficult to obtain once a platform reaches maturity.
Who Should Consider ChatGPT Ads?
While the platform is still developing, several types of businesses are already well positioned to benefit.
These include:
SaaS companies
National service providers
Technology businesses
Professional services
Education providers
B2B organisations
Brands selling knowledge-based products
Businesses that rely heavily on users researching solutions before making a purchase may find conversational advertising particularly valuable.
Meanwhile, hyper-local businesses may wish to wait until more advanced location targeting becomes available.
What Happens Next?
If history has taught us anything, it's that advertising platforms evolve quickly.
Over the next 12 months we would expect to see features such as:
More countries becoming available
Regional and local targeting
Better audience segmentation
Conversion tracking
More campaign objectives
Improved reporting
Greater automation
Agency account management
As adoption grows, competition will inevitably increase too.
The businesses experimenting today are building valuable experience that may prove highly advantageous once the platform becomes mainstream.
Quick Insight: Every major advertising platform rewards early learning. Understanding how ChatGPT Ads work now could give marketers a significant competitive advantage later.
Watching ChatGPT Ads emerge is genuinely fascinating.
As paid media specialists, it feels remarkably similar to witnessing the birth of Facebook advertising all over again.
The tools are still evolving.
The targeting is still basic.
The reporting remains limited.
Yet beneath those early limitations lies something genuinely different.
Rather than interrupting users with advertisements based on demographics, ChatGPT introduces brands into conversations where people are actively searching for answers.
That's a fundamental shift in digital advertising.
Should you move your entire advertising budget across today?
Probably not.
Should you begin paying attention, learning the platform and experimenting where appropriate?
Absolutely.
AI-powered search and conversational discovery aren't going away. If anything, they're becoming an increasingly important part of how consumers make decisions online.
The businesses that understand this shift early will be far better positioned as the platform matures.
At South Coast Design, we'll certainly be watching and testing every new feature as it arrives.
Because while ChatGPT Ads may still be in beta, one thing already feels certain:
The future of digital advertising has just become a little more conversational.
