In a significant shift in its advertising strategy, OpenAI has begun rolling out cost-per-click (CPC) ads within ChatGPT, marking a move toward performance-based advertising. The development signals the company’s push to attract a broader base of advertisers and build a new revenue stream around AI-driven interactions.
Unlike its earlier cost-per-thousand impressions (CPM) model, the CPC approach allows advertisers to pay only when users click on ads. Marketers can reportedly set bids between $3 and $5 per click, enabling more direct comparison with established ad platforms and improving control over ad spend.
Industry experts say this shift aligns with advertiser expectations. Nicole Greene, VP analyst at Gartner, noted that performance-based pricing helps brands better measure outcomes and justify reallocating budgets toward newer platforms like OpenAI.
The move reflects a broader transition. While CPM-based ads were easier to launch due to simpler infrastructure and brand-focused campaigns, they offer limited scalability. Performance advertisers, who drive a large share of digital ad spending, typically prefer CPC models tied to measurable engagement.
Falling CPM rates have also influenced the change. Ad costs have reportedly dropped from around $60 per 1,000 impressions at launch to nearly $25 in some cases within 10 weeks, making CPC a more sustainable way to grow revenue without relying on impression pricing.
However, OpenAI faces strong competition in this space. CPC advertising is dominated by Google, which uses advanced bidding systems based on user intent, quality signals, and auction dynamics. Platforms like Meta offer lower CPCs but differ in user intent, as social browsing behavior contrasts with search-driven intent.
Experts suggest that large language models could help bridge this gap, as user intent becomes clearer through conversational interactions, potentially increasing the value of clicks over time.
Alongside this rollout, OpenAI is actively hiring its first advertising marketing science leader. The role will focus on building measurement frameworks, including attribution models, incrementality testing, and media mix modelling, while ensuring privacy-compliant data practices. It will also involve working with advertisers, partners, and internal teams to develop robust reporting and evaluation tools.
The move highlights OpenAI’s rapid expansion in advertising, positioning ChatGPT as a new contender in the evolving digital ad ecosystem.
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