Brands rethink ads for ChatGPT

Based on six months supporting brand activations during the initial US pilot of ChatGPT ads, DEPT outlines three lessons for advertisers adapting to conversational advertising.

ChatGPT is becoming part of how consumers research categories, compare products and make purchase decisions, creating an emerging advertising environment for brands.

Unlike conventional search advertising, ChatGPT ads operate within conversations rather than a traditional results page. Advertisers therefore need to account for contextual intent, less granular reporting and the possibility that a user’s journey will not continue directly to a brand website.

Conversational copy changes how brands approach ads

DEPT’s early tests found that conversational ad copy performed better than conventional search copy. The strongest examples acknowledged the user’s situation and connected the product to the need being discussed.

For example, instead of a standard paid-search message such as Shop ergonomic office chairs, an ad could address the specific context with a message such as Find a supportive chair that fits your home office and budget. The approach is intended to make the advertising more relevant to the conversation without presenting it as impartial advice.

ChatGPT ads remain clearly identified as sponsored content, while OpenAI’s advertising policies prohibit ads that imitate ChatGPT closely enough to confuse users.

The approach also requires more than adapting existing paid-search assets. Advertisers need creative variations based on recognisable customer situations, supported by landing pages and product information that address the needs raised in the ad.

Intent mapping replaces traditional keyword targeting

ChatGPT advertising uses contextual hints to help match ads with relevant conversations. Rather than operating like exact-match keywords, these hints describe topics, situations, needs or terms associated with an ad group.

A paid-search campaign might target desk chair and ergonomic chair. A conversational campaign could instead describe hybrid employees looking for comfortable, affordable ergonomic chairs for small home offices. The broader description gives the system more information about the intended audience and the problem the product addresses.

DEPT recommends defining conversational audiences around three areas: commercial priorities, situations in which products become relevant, and the information consumers need before making a decision.

An AI visibility audit can then help brands assess where they appear in AI-generated answers, how they are represented and which competitors are being recommended. Those findings can inform paid media and broader content strategies, particularly where recurring consumer questions expose gaps in product information or category education.

ChatGPT campaigns require a different measurement model

DEPT says ChatGPT ads remain at an early stage and should not yet be expected to absorb large performance budgets. According to the agency, Google continues to provide greater conversion volume, while ChatGPT currently offers less scale, less mature optimisation and higher costs.

Reporting is also less granular than in conventional paid search. OpenAI’s Ads Manager provides metrics including impressions, clicks, spend, click-through rate, average cost per click, average cost per thousand impressions and conversions. Advertisers can also use the OpenAI Pixel and Conversions API to measure downstream actions.

However, advertisers do not have access to the same search-term detail available in paid search. This limits the ability to inspect individual queries, apply match types, add negative keywords or easily distinguish brand from non-brand activity.

DEPT therefore recommends keeping campaign and ad-group structures relatively focused. Performance should also be assessed according to the campaign’s role, potentially including engaged visits, retailer click-outs, assisted conversions, changes in branded search and visibility across commercially important prompts.

The agency recommends running tests for at least 90 days, with sufficient budget concentrated around a priority product, audience or intent area rather than spreading limited spend across numerous variables.

Paid visibility can complement AI discoverability

DEPT also describes a connection between ChatGPT advertising and generative engine optimisation (GEO). Sponsored placements provide paid visibility around an answer, while inclusion within an AI-generated answer depends on whether AI systems can understand and verify a brand through sources such as product feeds, website content, documentation, reviews and earned coverage.

In one example involving an early ChatGPT ads adopter in the medical device sector, DEPT combined GEO activity with paid advertising. The agency reports that the client reached 38 percent AI visibility, compared with 21 percent for its nearest competitor, and achieved a 27 percent share of voice across category answers. Within the paid campaign, lower-funnel placements delivered twice the click-through rate of upper-funnel activity.

DEPT says the work connected two parts of the customer journey: GEO improved the information available to AI systems, while paid activity provided visibility around relevant commercial conversations. Insights from both areas could then inform content, media and commerce planning.

Start with commercially relevant questions

DEPT argues that ChatGPT ads are not positioned to replace paid search in the near term. Instead, they provide access to a different stage of the consumer decision process, where users can express more detailed intent through conversational questions.

For brands testing the format, early campaigns can provide evidence about which conversations generate commercial value, how messaging needs to adapt and where paid visibility can complement efforts to make a brand easier for AI systems to understand and recommend.

The agency recommends using those findings to inform both future advertising campaigns and the broader strategy for improving a brand’s visibility across AI-powered discovery.

www.dept.global

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