ChatGPT ads use conversational context rather than keywords or demographics. Here is exactly how the targeting works, what the ad formats look like, and what advertisers can and cannot do right now.

How ChatGPT Ads Work: Targeting, Formats and What They Actually Look Like

ChatGPT advertising launched in the US in February 2026 and went live in the UK on 6 June 2026. Knowing it exists is one thing. Understanding how it actually works is another, and the mechanics are genuinely different from every other ad platform currently available.

This article covers targeting, formats, costs, reporting and the practical realities of running ads on ChatGPT right now.

The Targeting Logic

Every major ad platform has a core targeting mechanism.

Google targets search intent expressed through keywords. Meta targets audience profiles built from demographics, interests and behaviour. ChatGPT targets the conversation itself.

When a user is mid-conversation with ChatGPT, the ad system evaluates the full context of what they are discussing, not just a single query but the thread of the conversation. It matches that context to relevant advertisers.

Advertisers do not bid on keywords. Instead they supply context hints describing the topics and situations their ads suit. ChatGPT's system then determines when a conversation is sufficiently relevant to serve an ad.

This contextual matching has an important implication: the signal is richer than a keyword. A user asking ChatGPT 'I run a small professional services firm and I need to improve my marketing, where do I start?' is expressing a great deal more than a search for 'marketing agency'. The conversational context tells you they are a decision-maker, they have a specific problem, and they are actively looking for guidance.

For advertisers in B2B professional services, software, financial services and education, this is a meaningfully different quality of signal from anything currently available on search or social.

Ad Format

ChatGPT currently supports one primary ad format.

The ad appears below the organic ChatGPT response in a clearly labelled sponsored unit. It consists of a square image asset at 1:1 aspect ratio (256 x 256 pixels), a headline of up to 30 characters, body copy of up to 60 characters, and a destination URL with UTM parameter support for tracking.

The unit is compact. This is not a rich media environment. The image, headline and description need to work together to communicate clearly in limited space, and the messaging needs to be directly relevant to the conversational context where it will appear.

Ads that feel like interruptions perform poorly. Ads that feel like useful additions to the conversation the user is already having perform significantly better.

How Ads Are Matched to Conversations

OpenAI uses two layers of matching.

The first is the current conversation thread. The ad system reads what the user is discussing right now and selects ads relevant to that topic. If a user has personalisation turned off, this is the only signal used.

The second, for users with personalisation enabled, includes past chat history and previous ad interactions. This allows a more refined match over time, similar to how Google and Meta use browsing and engagement history to improve relevance.

If multiple advertisers are eligible for a given conversation, OpenAI selects the most relevant one to show first. In some cases, a single ad unit may feature items from more than one advertiser.

Advertisers do not have access to the content of conversations. They never see what users said, what topics were discussed, or any personally identifying information. They receive only aggregate performance data.

Costs

ChatGPT advertising launched at premium rates reflective of its early-stage positioning and the quality of the intent signal.

The US pilot required minimum commitments of $200,000 to $300,000 for early access, with CPM rates around $60. In practice, CPMs settled closer to $30 as inventory scaled.

OpenAI's self-serve Ads Manager has since removed minimum spend requirements. CPC and CPM bidding are both available. CPM suits awareness objectives. CPC suits direct response campaigns where you are paying for clicks through to a landing page or conversion point.

UK advertisers do not need to wait: OpenAI began rolling out the self-serve Ads Manager beta to UK businesses around 19 June 2026, so campaigns can be set up directly at openai.com/advertisers.

Reporting: What You Can and Cannot See

Reporting on ChatGPT ads is, at this stage, limited compared to mature platforms.

Advertisers can currently see impressions, clicks, spend, click-through rate, average CPC and average CPM, broken down by day.

What is not yet available: audience demographic breakdown, placement data showing which conversation types triggered your ad, sentiment data, or any insight into the conversational context around your ad placements.

This reporting picture will improve as the platform matures. For now, advertisers should plan their tracking infrastructure carefully: clean UTM parameters on destination URLs, proper conversion tracking on landing pages, and CRM alignment to connect ad clicks to actual business outcomes.

Brand Safety

OpenAI excludes certain topic areas from advertising. Ads will not appear in conversations about personal health, mental health or politics. Sensitive and regulated verticals such as financial services and health products may be eligible but are subject to stricter eligibility criteria and placement rules.

Advertisers can also use topic exclusion lists to prevent their ads appearing adjacent to specific conversation types.

What This Means for UK Advertisers Right Now

The honest position is this: ChatGPT advertising is an early-stage channel with genuine potential and real current limitations. The intent signal is strong. The reporting is thin. The format constraints are significant. And the UK Ads Manager is still a beta that changes week by week.

The businesses that treat the rest of 2026 as a learning period, running small, well-tracked campaigns, developing conversational ad creative and building their tracking infrastructure, will be significantly better positioned as the channel matures.

The businesses that wait until the platform is mature will find it more competitive and more expensive.

ThursdayThinking.ai and ChatGPT Ads

ThursdayThinking.ai sets up and manages ChatGPT Ads for UK businesses. We combine paid placement management with Thursday Intelligence, our proprietary AI search tracking platform, so clients can see both their paid and organic AI visibility across ChatGPT and four other AI platforms.

To discuss ChatGPT Ads for your business, contact hello@thursdaythinking.digital.