Well, it happened. ChatGPT ads went live in Australia last week, making us one of the first countries outside the US to get them. My inbox has been full of “should we be doing this?” ever since.
Short answer: maybe, but probably not with your whole budget. Here’s the longer answer.
What are ChatGPT ads?
When someone asks ChatGPT a question, it can now show a sponsored result alongside the answer. Ask for help planning a trip to Bali and you might see an ad for a hotel or a tour. Ask about the best running shoes and you might see a retailer.
The ads are labelled and separate from ChatGPT’s actual answer. They only show to people on the free and cheaper plans. Paying subscribers don’t see them.
Why it’s a big deal
People are using AI tools to research purchases more and more. Instead of typing “plumber Perth” into Google, some people now ask “who’s a good plumber near me and what should I pay for a hot water system?” That’s a much richer question, and a business that shows up right there has a real shot.
It’s also the first serious new search-style ad channel in years. Google and Microsoft have had it to themselves for a long time.
Why I’m not rushing everyone in
It’s early days, and early days come with catches:
- Measurement is basic. Right now you mostly get impressions and clicks. Proper conversion tracking (knowing whether that click became a lead or a sale) is limited. Without it, it’s hard to tell if you’re making money.
- It’s not built for every business yet. The early advertisers are mostly big brands in travel, retail, tech and automotive. Local service businesses aren’t the obvious fit yet.
- Costs are moving fast. Prices have already shifted a lot in the US. When a channel is this new, it pays to wait a bit before betting big.
So should you try it?
Here’s how I’d think about it:
- If Google Ads already works well for you and you’ve got some budget to play with, a small, controlled test makes sense. Treat it like an experiment, not a strategy.
- If your Google Ads or SEO aren’t sorted yet, fix those first. They’re proven, measurable and they’ll still be bringing in most of your leads this year.
- If you’re in travel, retail or ecommerce, keep a close eye on this one. You’re the type of business these ads are being built for.
What you can do right now (for free)
Even if you never run a ChatGPT ad, AI tools are already recommending businesses in their normal answers. You can improve your chances by making your website crystal clear about what you do, where you do it and who you do it for. Answer common questions directly, keep your business details consistent everywhere online and collect genuine reviews.
That’s what GEO, or AI search optimisation, is all about, and it helps your Google rankings too.
My take
This is exciting, and I’ll be testing it carefully. But exciting isn’t the same as ready for your budget. When the measurement improves and the costs settle, I’ll be the first to tell my clients it’s time.
Want to talk about whether AI ads make sense for your business? Get in touch and I’ll give you a straight answer.
