OpenAI is reportedly rolling out a new cost-per-click (CPC) ad model inside ChatGPT, where advertisers pay only when users click on sponsored results. This replaces earlier tests that focused on high-cost impression-based ads and makes the platform more performance-driven. Advertisers can now bid around $3 to $5 per click, reports DIGIDAY. This comes as impression rates have already dropped sharply – from about $60 per 1,000 impressions at launch to nearly $25 in some cases – within just a few weeks.
In its initial phase, the platform leaned heavily on premium CPM pricing, positioning itself as a high-value, limited-inventory environment aimed primarily at large brands with substantial budgets. However, the rapid decline in CPM rates suggests that supply is increasing and the market is adjusting to more realistic demand levels. Lower impression costs make the platform more accessible, but they also compress margins, pushing the Sam Altman-led firm to introduce CPC as a more sustainable revenue lever tied directly to user engagement.
CPC fundamentally changes how advertisers evaluate campaigns on ChatGPT. Instead of paying for visibility alone, brands can now spend based on measurable actions. This is particularly important as advertisers increasingly demand a clear return on investment. At the same time, the move places OpenAI in more direct competition with established digital advertising leaders such as Google, where CPC has long been the dominant model.
The latest change becomes even more critical as early feedback during initial testing indicated that the platform is still evolving in key areas. Advertisers involved in pilot campaigns highlighted gaps in measurement capabilities, pointing to limited analytics dashboards, inconsistent ad delivery, and the absence of standardized performance benchmarks. Because ads in ChatGPT are served contextually – based on the flow of user conversations rather than fixed, high-volume placements – brands are finding it more difficult to accurately track reach, engagement patterns, and overall return on investment compared to traditional digital advertising platforms.
However, despite these challenges, the revenue potential remains significant. The ChatGPT maker is reportedly targeting around $2.5 billion in advertising revenue in 2026, with long-term projections reaching as high as $100 billion annually by 2030. This projection comes as the AI giant expands access to its ad platform to a broader set of advertisers. OpenAI has also partnered with ad-tech firms like Criteo, which support audience targeting, campaign delivery, and performance tracking. Earlier reports suggest that brands are being asked to commit sizable budgets from the outset, with initial campaign spends typically ranging between $50,000 and $100,000. Advertisers are also encouraged to provide multiple versions of their ads so the system can test them and identify which ones perform better.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
