Yes, ChatGPT ads – specifically those run through platforms like the Microsoft Advertising network which integrates with OpenAI’s models as of December 2025 – can target local areas in Australia using location extensions and audience targeting features.
The core mechanism relies on Microsoft Advertising’s (formerly Bing Ads) capabilities. Advertisers don’t directly target *within* ChatGPT itself, but rather create campaigns within Microsoft Advertising that can then appear as sponsored responses or conversational ads when users interact with ChatGPT. Location targeting within Microsoft Advertising now includes postcode, radius targeting around specific addresses, and targeting by Australian states, territories, and metropolitan areas. These campaigns utilise audience signals, including demographic and interest-based data, which can be layered with location targeting. As of December 2025, Microsoft Advertising’s rollout of AI-powered ad formats in Australia is complete, and the platform supports Australian currency and GST compliance. Microsoft has announced in late 2025 that expanded location granularity, including suburb-level targeting, is planned for release in 2027, pending data privacy assessments. Currently, campaign performance data is reported at the region level, not individual postcodes.
Ultimately, local targeting with ChatGPT ads functions by leveraging the location targeting features available within the Microsoft Advertising platform, which then delivers ads in response to relevant queries within the ChatGPT interface.
