ChatGPT, as a large language model, and paid search advertising (like Google Ads) both aim to connect businesses with potential customers, but operate through fundamentally different mechanisms: paid search relies on auction-based keyword targeting, while ChatGPT facilitates conversational interactions to qualify and nurture leads.
As of December 2025, Google Ads in Australia continues to function on a pay-per-click (PPC) model. Advertisers bid on keywords relevant to their offerings, and ads are displayed to users searching those terms. Performance is tracked via metrics like click-through rate (CTR) and conversion rate. ChatGPT, integrated into platforms like Microsoft Copilot and accessible via the OpenAI API, now includes features allowing for custom GPTs tailored to specific lead generation tasks. These GPTs can engage website visitors in natural language, collect contact details via form integrations, and qualify leads based on pre-defined criteria. In 2026, we anticipate further integration of AI-powered conversational interfaces within Google Ads, potentially offering more dynamic ad copy generation and improved landing page experiences. Australian privacy laws (like the Privacy Act 1988) apply to both methods, requiring consent for data collection. Currently, the average cost-per-click for competitive keywords in Australia is between $2 – $5 AUD.
Ultimately, paid search delivers visibility based on active search intent, while ChatGPT proactively engages users and gathers information to identify potential leads through conversation.
