OpenAI is changing its ad model within ChatGPT from impression to performance, a move that puts it in direct competition with Google’s core business.
What’s going on. OpenAI has begun testing cost-per-click (CPC) ads within ChatGPT, allowing advertisers to pay only when users click rather than when ads are displayed. Early reports suggest that clicks are worth around $3 to $5, and the feature is rolled out with a limited ad manager alongside the previous CPM-based model.
Why now. Price pressure appears to be the main driver. ChatGPT’s CPMs have dropped significantly since launch, dropping from around $60 to close to $25 in some cases. The move to CPC helps correct that decline by tying revenue to measurable results instead of opinions.
Why do we care. ChatGPT is evolving into a performance channel, not just a branding environment. With CPC pricing, budgets can now be directly linked to measurable actions, making it easy to evaluate ROI and compare to channels like Google Search.
It also opens up early access to a potentially highly targeted audience in a new format, giving advertisers an opportunity to gain an early advantage before competition – and costs – increase.
Big picture. This is more than a price adjustment — it’s a fundamental change. CPC advertising has long been dominated by Google, built on strong signals of user intent. By adopting a similar model, OpenAI positions ChatGPT to compete for performance marketing budgets, not just spend money on the product, effectively transforming the product into a fully-fledged ad platform.
Between the lines. The real challenge will be to prove intent. Search advertising works because users are looking for something; ChatGPT must demonstrate that its chat context can generate the same valuable clicks. Advertisers can measure performance directly against Google, increasing quality and conversion rates.
Reverse the image. Advertising is becoming the cornerstone of OpenAI’s long-term revenue strategy, with investments in ad infrastructure, measurement tools and a comprehensive self-service platform.
Bottom line. By introducing CPC ads, OpenAI is now competing for the performance-driven ad dollars that power veteran search platforms.
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