1 min read
What changed
OpenAI switched ChatGPT ads from CPM (cost per thousand impressions) to CPC (cost per click) pricing
Advertisers can now bid $3 to $5 per click
Minimum campaign spend dropped from $250,000 to $50,000
CPM rates fell from $60 at launch to $25 in just 10 weeks
What it means
OpenAI is competing directly with Google and Meta for performance budgets now. The CPM model was not sustainable because advertisers could not justify $60 per thousand impressions without click-through proof. The shift to CPC signals that ChatGPT advertising is moving from experimental brand play to measurable performance channel. At $3-$5 per click, it sits above Google Search CPCs for most categories but below premium LinkedIn rates. For Australian businesses, the $50K minimum still puts this out of reach for most SMBs, but mid-market and enterprise advertisers should be watching closely.
What to do
Track ChatGPT as an emerging channel in your paid media planning
Compare the $3-$5 CPC against your Google and Meta benchmarks to assess viability
Monitor whether OpenAI introduces self-serve access or further lowers the minimum spend
Ensure your product and brand information is accurate across AI platforms
Source: Digiday, Search Engine Land, The Next Web
