ChatGPT Ads are now live for advertisers. This is tremendous news and creates a significant opportunity for all brands looking for more customers and leads. In this post we’re going to share our experiences advertising on ChatGPT. If you need a data-driven agency to drive traffic and leads from ChatGPT contact Rise today for a free ChatGPT ads consultation.
ChatGPT Ads are available, why is this a big deal?
The marketers haven’t had any new search platforms to advertise on in decades. It’s the same, Google and Microsoft (which includes Bing, Yahoo, AOL, DuckDuckGo, etc.). With increased competition advertising on these engines every year, CPCs continue to get higher, which strains marketing campaigns to drive solid ROI.
With ChatGPT ads now available, this gives advertisers an amazing opportunity to get in early, before the competition does. Since ChatGPT operates on an auction model, we’re seeing very low CPCs despite being able to target very high CPC keywords.
Here’s an example, here are two sample campaigns we’re running. One is targeting high intent prompts for Google Ads agency, another for an ecommerce / shopify agency.
Note the CPCs on each campaign, the cost per click is under $3.00!
Let’s compare this with Google Ads. Yes, Google will have more search volume, but the estimated CPCs on the low range is around $14 – $19 per click, on the high end it’s upwards of $120 – $150 per click!
I can vouch for this, when we ran ads on Google for marketing services, the ads wouldn’t even serve unless you’re close to $20/click.
Because the competition on ChatGPT is very low, the CPCs aren’t expensive. This will change, but it creates a massive opportunity for early adopters to take advantage of this traffic.
Further, we’re seeing real leads from this traffic, as you can target based on relevant prompts (or keywords).
ChatGPT Campaign Creation
Setting up ChatGPT Ads is insanely simple. For any advertiser who knows how to advertise on Google, this will be a walk in the park. You simply create a campaign, which would be similar to a traditional search campaign. Think of the theme you’re looking to target, and name the campaign as such.
Within the campaign settings you’ll establish:
Campaign name
Objective
- Select, reach, clicks or conversions as the objective. I would recommend setting up clicks to start until you start seeing conversions.
Conversion
- This is optional but strongly recommended, as you do for Google ads, you can set up tracking to map how many conversions you’re receiving from the campaigns. This will give you insight into the performance of the campaigns, and also feed ChatGPT data to optimize for conversions.
Locations
- At this point it’s pretty rudimentary, the most refined target you can opt for is state targeting, not city or DMA targeting. This is important because for local businesses (such as home services), you’ll have to be very specific in the prompt targeting to only target prompts in your area, to limit exposure to areas you don’t support.
Eligible Platforms
- Here you can select to show on the IOS App, Android App, or the Web based experience. We’re testing web based as I believe more desktop traffic is using the web based experience, which typically desktop traffic can lead to better engagement.
- This is a good future test, to create campaigns by ChatGPT experience to see which yields better engagement.
Landing Page Parameters
- Add tracking parameters to view campaign, ad group, and ad analytics within Google Analytics.
Custom Audiences
- Upload audiences to either target or negate. I wouldn’t focus too much on this to start, but as you get more sophisticated you can negate audiences such as existing customers.
Daily Budget
- This is a big one, the minimum daily budget is $25/day. However, that doesn’t mean you’ll spend this much, this is also dependent on the bids you set within the ad group. As an advanced strategy, you can create numerous campaigns, but just set your bids low to capture the most efficient traffic possible.
Flight Dates
- Start and end dates of the campaign
Text customization
- This allows ChatGPT to customize the ads based on the user prompts, we’re testing this to start.
Once you establish your campaign setup, let’s jump into the ad groups.
ChatGPT Ad Groups
Similar to Google Ads, once the campaign is created, you’ll setup the ad group, which is more specific on the targeting and bidding. This includes:
Bid Strategy
Choose between maximize results, which will allow ChatGPT ads to automatically place your bids, or you can use manual CPC bidding. We recommend to use manually CPC bidding, starting at a low bid: $2.5 – $3 to start, and ramp up based on performance.
Landing Page parameters / destination URL
This is important on two aspects:
- Drive traffic to the most relevant URL. This is standard marketing practices, based on your targeting, drive users to the most relevant landing page to drive conversions. Don’t just drive traffic to your homepage, have a dedicated page to convert the traffic.
- Use some type of landing page parameters, or update your URL with UTM parameters. This is very important so you can see how the traffic performs within your analytics platform, like Google Analytics.
Contextual Hints
This is where your targeting is set. I would treat this similar to a Google Ads campaign, where you’re adding in keywords or prompts you’re looking to target. Be as specific as possible, as you’re paying for this traffic and want to make sure you’re reaching the right audience. For us, it’s users searching for marketing agencies.
Once this is set up, you’re ready to create ads.
ChatGPT Ad setup
You’ll see this is very similar to Google Ads, simply upload an ad title, description and a relevant image.
It’s recommended to test a few ads for the given ad group so you can start to optimize ads based on which is driving the most engagement.
How to Review Performance of your Campaigns
Once you launch the campaign, ads will start serving within several hours. For the first week, monitor ChatGPT Ad performance within the platform to ensure that they’re serving, the CPCs are coming in as expected.
Also review Google Analytics to understand the bounce rate and site engagement of these ads. This is critical when optimizing so you optimize your campaigns to drive traffic that is engaging with your website.
As you start driving engaged traffic, you will start to receive leads, which is important to monitor the quality of leads and optimize your campaigns accordingly, based on targeting, ads, bid strategy, landing page experience, etc.
Ready to Advertise on ChatGPT?
Contact Rise Marketing Group through the lead form below, we’ll follow-up within 24 hours and start discussing how we can get you setup to drive traffic and leads on ChatGPT.
