TLDR Tech / Marketing
British media buyers are preparing for ChatGPT Ads
OpenAI's ChatGPT ads rollout is establishing a new mid-funnel channel that combines search intent with programmatic targeting. Agencies are currently treating it as an experimental awareness strategy rather than a direct response channel. Initial campaigns in the US had CPMs around $60, but agencies now report CPMs closer to $30, along with early conversion indicators and high order values. Agencies recommend that brands allocate innovation budgets for testing, as measurement, brand safety, and attribution standards are still developing compared to established search and social platforms. Advertisers also recognize the long-term potential of directly influencing AI-generated recommendations, believing that becoming part of the LLM interface may offer more value than merely driving clicks to external websites.
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