As of December 2025, determining whether ChatGPT ads will be cheaper than Google Ads is complex, as the cost structures operate fundamentally differently; Google Ads uses an auction-based system, while ChatGPT ads, delivered through platforms like OpenAI’s advertising console and integrated channels, primarily utilise a cost-per-thousand-impressions (CPM) or cost-per-click (CPC) model based on the complexity of the generated ad content and targeting parameters.
Google Ads, widely available to Australian businesses, functions via a second-price auction where advertisers bid on keywords. Costs fluctuate based on competition, Quality Score, and ad rank. In contrast, ChatGPT ad delivery, now including options within Microsoft Advertising and select social media platforms, focuses on serving ads generated *by* AI, often personalised based on user prompts and data. CPM rates in December 2025 for ChatGPT-powered ads typically range from AUD $5 to $20, depending on audience targeting and ad creative complexity. CPC can vary significantly, but generally sits between AUD $0.50 and $3.00. OpenAI’s advertising console, launched in late 2024, allows Australian businesses to directly manage these campaigns, adhering to Australian Consumer Law and ACCC guidelines regarding transparency in advertising. In 2026, we anticipate further integration with Australian-specific data providers to refine targeting. Future updates announced for 2027 include dynamic pricing adjustments based on real-time ad performance.
Ultimately, ChatGPT ads leverage AI-generated content and a different bidding system than Google Ads, meaning a direct cost comparison isn’t straightforward and depends heavily on campaign specifics and performance metrics.
