ChatGPT ads, available in Australia through platforms like Microsoft Advertising and increasingly via direct integrations with OpenAI as of December 2025, utilise generative AI to create conversational ad experiences, while search ads, primarily through Google Ads, target users based on specific keywords they actively search for.
Search ads function on an auction system: businesses bid on keywords relevant to their products or services. When a user searches on Google Australia, relevant ads are displayed alongside organic results. Currently, Google Ads offers various ad formats including text, shopping, and video ads, with performance measured by metrics like click-through rate (CTR) and conversion rate. ChatGPT ads, however, leverage large language models. As of December 2025, these ads appear within the Microsoft Copilot experience and, through beta programs, directly within ChatGPT Plus. They don’t rely on keyword bidding; instead, advertisers provide prompts and brand information, and the AI generates responses tailored to user queries within the conversational interface. Microsoft Advertising’s rollout of AI-powered ad creative generation now includes options specifically for the Australian market, adhering to ACCC guidelines on advertising transparency. In 2026, we anticipate increased integration of these AI-powered ads across more platforms.
Essentially, search ads *respond* to explicit user intent, while ChatGPT ads *engage* users in a conversation, potentially surfacing needs they hadn’t explicitly articulated.
