Ask ChatGPT for the best running shoes and you might now see something new under the answer. A small card with a brand logo, a headline and one word on top. Sponsored.
That card is an ad. ChatGPT started showing them in the US in February 2026. Seven months later they run in more than 60 countries, and OpenAI says the ads business is already on pace for a billion dollars a year.
Most of what you read about it is either marketer jargon or already out of date. This guide covers where the ads appear, who sees them, how ChatGPT decides which one to show and what they cost a business to run.
If you use ChatGPT, you will know what you are looking at. If you run a business, you will know whether to care.
What are ChatGPT ads?
ChatGPT ads are paid placements that show up under a ChatGPT answer. Each ad matches whatever the person is talking about at that moment. Ask about a trip to Bali and you might see a travel brand. Ask about project management tools and you might see a software company.
OpenAI announced the plan on 16 January 2026 and began testing on 9 February with logged-in adult users in the US.
The company made one promise at launch and repeats it in every announcement since. Ads do not influence the answer. The ad sits apart from the response with its own label. Advertisers also never see your conversations. They get totals like impressions and clicks, and nothing more.
Where ChatGPT ads appear
Ads appear below the ChatGPT response. They never show up inside the answer text.
That point matters, because several guides still describe ads blended into the reply, as if ChatGPT slips a paid product into its own recommendations. OpenAI's help center says otherwise. The answer comes first. The ad comes after it, marked Sponsored.
A standard ad carries six things:
[VISUAL: annotated ChatGPT answer with the ad card below it, each element labelled]
Single ad card. The standard format. One advertiser, one message, one link.
Product carousel. Stores that upload a product feed can show several products in one ad unit, side by side. It went live in August 2026 and works a lot like Google Shopping, except every product comes from the same seller.
Sponsored Agents. The newest format, and still a test. OpenAI announced it on 16 September 2026 for a small group of US advertisers. Click the ad and ChatGPT opens a separate, labelled conversation with an agent the brand runs. You talk to the brand's agent instead of ChatGPT.
Who sees ChatGPT ads (and who never does)
Ads only reach people on the two cheapest plans. Everyone paying for Plus or above gets ChatGPT without them.
OpenAI decides the age side using the age on the account and, where available, its own age prediction.
Some chats stay ad-free no matter which plan you are on. OpenAI keeps ads away from sensitive topics such as health, mental health and politics.
Location matters too. ChatGPT ads now run in more than 60 countries, including the US, the UK, most of Europe, India, Japan, Australia and, since 23 September 2026, Singapore and six other Southeast Asian markets.
How ChatGPT picks which ad to show
Google Ads taught a generation of marketers to think in keywords. ChatGPT works differently, and this is where most people get confused.
Context hints, not keywords
Advertisers do not bid on words. They write context hints, which are short descriptions of the situations where their product fits. A running brand might describe "a runner preparing for a first marathon" rather than bidding on "running shoes."
OpenAI is clear that these hints are not exact match. They guide the system toward the right conversations, but they do not guarantee an ad appears in any specific chat.
ChatGPT also reads the ad itself. The headline, the description and the landing page all count toward deciding whether an ad fits a conversation.
Personalization signals
The current conversation always counts. When ads personalization is on, ChatGPT can also draw on a wider set of signals, such as past chats and saved memories.
The default depends on where you live. In the US, personalization is on unless you switch it off. In the EU and UK, it stays off until you agree to it.
The auction
When several ads fit the same conversation, ChatGPT runs a relevance-weighted, second-price auction.
In plain terms, the highest bid does not automatically win. A well-matched ad with a smaller bid can beat a loosely matched ad with a bigger one. Your bid works as a ceiling, not a fixed price.
How businesses buy ChatGPT ads and what they cost
Businesses pick one of three goals when they set up a campaign.
Views. You pay per thousand impressions (CPM).
Clicks. You pay per click (CPC).
Conversions. ChatGPT optimizes toward sales or sign-ups, but you still pay per click.
OpenAI's own advice is to start with a maximum bid of $3 to $5 per click.
The entry price has fallen fast. At launch in February, advertisers needed a $200,000 minimum commitment. That dropped to $50,000 in April and disappeared completely in May, when self-serve opened to every US business.
There are now four ways in. Most businesses sign up directly at ads.openai.com. Shopify merchants can run campaigns through the ChatGPT Ads app, and HubSpot users can do it from inside HubSpot. Select US advertisers can also buy through Amazon's ad platform.
One catch for businesses outside the big markets. To use self-serve, your business must be legally registered in a country where ChatGPT Ads is available.
For tracking, Ads Manager reports impressions, clicks, spend and conversions. You can also add UTM tags to your links and follow the traffic in your own analytics.
ChatGPT ads vs Google Ads
Both platforms sell attention at the moment someone is looking for help. The mechanics underneath are very different.
Google still reaches far more people with far better data. ChatGPT reaches people in the middle of a decision, often after they have described exactly what they need. For most businesses that makes ChatGPT a channel to test next to Google, not a replacement for it.
What ChatGPT users can control
If you use ChatGPT on the Free or Go plan, you have more say over ads than most people realize.
Turn off ad personalization. Ads keep showing, but ChatGPT only uses your current chat to pick them. Past chats and memory stay out of it.
Clear your ads data. This wipes your ad history and ad topics. Your chats stay untouched.
Dismiss an ad. You can hide any ad and tell OpenAI why.
Go ad-free. Plus and every plan above it show no ads. OpenAI also says Free users can choose an ad-free option that comes with tighter usage limits.
Your conversations stay private either way. Advertisers never read them.
What this means for your business
The most important point sits in OpenAI's own rules. Ads do not influence the answer.
So paying for ads puts your brand under the answer. It does not put your brand inside it. When ChatGPT recommends three accounting tools or four hotels in Singapore, that list comes from what it knows about the web. Your website, your content and your reputation earn that spot. Ads cannot buy it.
That makes this a two-part game. Ads can win you the click below the answer. Organic AI visibility wins you the mention within it. We help businesses with that second part as part of our SEO work.
Some businesses should test ChatGPT ads now:
Online stores with a clean product feed, especially Shopify merchants who can connect in a few clicks
Businesses whose customers research carefully before they buy, like software, travel and home services
Others should wait. If your budget is small or you need proven numbers before you spend, give the platform a few more months.
For businesses in Southeast Asia, the timing is worth noting. Singapore, Malaysia, Indonesia and four other markets opened on 23 September 2026. Early advertisers in a new channel usually face less competition and lower prices.
[FIRSTHAND: our team's take, a client question we have received, or a small test result]
What we still do not know
ChatGPT ads are young, and some big questions have no answer yet.
Advertisers get little insight into the auction itself, so it is hard to tell why one brand pays more than another for the same space. There are no settled benchmarks for what a good click rate or cost looks like. Sponsored Agents is still a test and could change shape before a wider launch.
OpenAI says new formats, tools and markets are coming in the months ahead. We will update this guide as they land.