ChatGPT ads, powered by OpenAI’s advertising platform, operate on a cost-per-interaction model, primarily charging for each meaningful conversation turn initiated with a customer, whereas Google Ads typically uses a cost-per-click (CPC) or cost-per-impression (CPM) system.
- Dynamic Creative Optimisation: The platform now features AI-driven ad copy generation, personalising messaging based on user prompts and intent.
- Contextual Targeting: Ads are served within ChatGPT conversations, allowing for highly relevant targeting based on the ongoing dialogue.
- Conversation Length Bidding: Advertisers can bid on the anticipated length of a conversation, optimising for deeper engagement.
- Australian Data Compliance: As of early 2026, all platforms operating in Australia must adhere to updated Privacy Act regulations, impacting data usage for ad targeting.
As of early 2026, determining a definitive ‘cheaper’ option is complex. While initial interaction costs for ChatGPT ads may appear lower than Google Ads CPCs, the value of each interaction differs. Google Ads offers broader reach and established keyword targeting, while ChatGPT ads excel in qualified lead generation through conversational engagement. Current systems include sophisticated attribution modelling for both platforms, but accurately measuring the lifetime value of a ChatGPT-sourced customer requires robust tracking. In 2026, we’re also seeing increased competition for prime conversational slots within ChatGPT, potentially driving up costs.
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